New Delhi:High attrition rate and unprecedented hike in property prices are likely to affect the growth of India’s BPO industry.
The Industry board, ASSOCHAM on Monday said that the growth of India’s Business Process Outsourcing (BPO) industry is likely to be impacted because of high attrition rate and unprecedented rise in property prices.
"High attrition rate of around 40 per cent and almost 100 per cent hike in property price in metros, BPO firms might have to satisfy at 25 per cent growth rate in next two-three years as against the projected rate of 35 per cent,” news agency, PTI quoted the chamber as saying.
High attrition rate experienced by 60 per cent of BPO units are because of higher salary expectations, a study on ‘Rising property prices and high attrition in outsourcing industry' showed.
Over 80 per cent of the respondent BPO companies felt their attrition rates in future will rise even over 40 percent whereas, the remaining 20 per cent firms were optimistic that it will drop down and should stabilize between 20-25 percent.
"The impact of attrition would be increase in expenditure of training and development, loss of clientele, failure to attract more business based on high output, inconsistent delivery and loss of productivity, high turn-around-time, costly recruitment process which would create a dearth of300,000 professionals by 2009," ASSOCHAM President Venugopal Dhoot said.
Following the sealing drive, the property rates in the capital and its suburb has gone up. During the last six months, the rentals have increased by 20-30 per cent in Delhi.
About 80 per cent of the BPO companies believe that the property prices have grown by nearly 100 per cent in the last decade.
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