The Indian Information Technology Enabled Services (ITES)—Business Process Outsourcing (BPO) industry is maturing and gaining increasing traction and visibility and is expected to touch Rs. 30,537 cr by 2010 as per NASSCOM reports. The key issues in this emerging manpower-intensive and manpower-driven industry are recruiting, retaining and nurturing the best talent. As the industry looks to a scientific and analytical approach to address these issues, a possible solution available is Employee Engagement— a focus on which could bring rewarding and memorable experiences. Employee Engagement is a multidimensional construct that consists of cognitive, emotional and behavioral components that are associated with individual role performance.

The Indian Information Technology Enabled Services (ITES)-Business Process Outsourcing (BPO) industry has rapidly opened up, expanded, matured and with a wave of consolidation has scripted new initiatives. With substantial evolution being witnessed, India has become the ideal and most preferred offshore destination (The NASSCOM - McKinsey Study 2002). The blazing growth of ITES industry is a result of huge inflows of investment by foreign companies that have set up large facilities across India in step with the entry of Indian IT industry majors into the ITES-BPO domain. A number of leading Indian industrial groups from the non-IT sector have also arrived on this turf with a view to participate in this emerging sector. Numerous factors such as supply of skilled manpower, global standard telecom infrastructure, proactive and positive policy environment and friendly corporate tax policies have given India an edge in the global marketplace.

As a result of this unmatched value proposition, there are currently over 200 companies participating in the ITES-BPO segment and is expected to have sizeable growth in the future signifying a positive indication of the times to come. With over 30% growth in the FY 2006-07 and rising contribution to Indian GDP, the industry has seen a tremendous progress with a greater degree of depth, specialization and competition. In spite of offering distinct advantages such as cost competitiveness, highly skilled labor and a high level of service maturity, the industry witnessed certain unique challenges specific to this new landscape (Mercer, 2006). A number of significant and pressing issues emerged and took center stage, especially, in the area of Human Resources (HR).

Of myriad HR-related challenges faced by the industry, the critical ones are the attrition and scarcity of professionals equipped with necessary domain knowledge and communication skills (NASSCOM, 2005). Despite being global phenomena, these challenges have become a matter of concern in Indian IT industry. A recent report from NASSCOM reconfirms the fact that the biggest challenge of all is to manage the ambitious and transient workforce. As the industry is predominantly service-oriented, the importance of attracting and retaining talent has become crucial.

HRM Review Magazine, Employee Engagement, Indian Information Technology Enabled Services, ITES, Business Process Outsourcing, BPO, Gross Domestic Products, GDP, Organizational Behavior, Organizational Cultural, Organizational Strategy.