scholarly journals Employee Turnover in the Business Process Outsourcing Industry in India

Author(s):  
Aruna Ranganathan ◽  
Sarosh Kuruvilla

In this chapter, we explore the problem of high turnover in the high-tech BPO sector in India, where relatively well-educated employees are performing a variety of primarily low skill, low cost jobs. We highlight the various approaches employers are taking to solve the turnover problem. As we will argue, some of these strategies are fairly traditional, focusing on various instrumental incentives to promote employee retention, while some others are new and rather radical, particularly the articulation of an organizational and work culture tailor-made for the particular demographic profile of BPO employees: young, upper middle class, well-educated graduates. Based on anecdotal evidence and interviews with industry personnel, we sense some ambiguity regarding the effectiveness of these strategies. We argue that this ambiguity is a function of (a) the recent and rapid growth of the industry and the fact that firms are experimenting with a whole variety of retention strategies, and (b) the inability of firms to develop an integrated organizational culture that permits a focus on both longer term organizational performance, as well as retention.

2010 ◽  
pp. 1974-1996
Author(s):  
Aruna Ranganathan ◽  
Sarosh Kuruvilla

In this chapter, we explore the problem of high turnover in the high-tech BPO sector in India, where relatively well-educated employees are performing a variety of primarily low skill, low cost jobs. We highlight the various approaches employers are taking to solve the turnover problem. As we will argue, some of these strategies are fairly traditional, focusing on various instrumental incentives to promote employee retention, while some others are new and rather radical, particularly the articulation of an organizational and work culture tailor-made for the particular demographic profile of BPO employees: young, upper middle class, well-educated graduates. Based on anecdotal evidence and interviews with industry personnel, we sense some ambiguity regarding the effectiveness of these strategies. We argue that this ambiguity is a function of (a) the recent and rapid growth of the industry and the fact that firms are experimenting with a whole variety of retention strategies, and (b) the inability of firms to develop an integrated organizational culture that permits a focus on both longer term organizational performance, as well as retention.


Author(s):  
Kijpokin Kasemsap

This chapter reveals the role of strategic outsourcing in global business, thus describing the theoretical and practical concept of strategic outsourcing; the management theories related to strategic outsourcing; the applications of Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO); and the significance of strategic outsourcing in global business. The fulfillment of strategic outsourcing is vital for modern organizations that seek to serve suppliers and customers, improve business performance, enhance competitiveness, and reach continuous achievement in global business. Therefore, it is necessary for modern organizations to explore their strategic outsourcing, establish a strategic plan to usually check their practical advancements, and immediately respond to strategic outsourcing needs of customers in modern organizations. The chapter argues that applying strategic outsourcing in global business has the potential to increase organizational performance and attain business goals in the digital age.


Author(s):  
S. Srividhya ◽  
P. Pandian

India became a prominent destination for outsourcing in the services sector in the 1990s. Outsourcing to India started with the IT industry, which has responded to the changing market requirements by increasing the scale of operations and capability to handle complexity. Business Process Outsourcing (BPO) in India has grown rapidly as compared to software services as the advantages offered by the country (low cost and abundant talent pool) were well known and tested in IT outsourcing. Most of the infrastructure required was already in place, and companies needed to set the processes right to get BPO going in India. Funding is the essence of any corporate growth story, and the Indian corporate are spreading around the globe with some remarkable takeovers. Coupled with the fact that India has highly skilled manpower with leading global tech, companies are setting their ventures, research and developmental activities in India with the help of venture capital avenues. This chapter highlights some of the venture capital avenues and government policies that have proven very beneficial in the growth of the IT/BPO industry. These favorable government policies have gone a long way in making India an outsourcing/IT hub. Finally, this chapter conceptualizes the implementation of venture capital avenues and application in IT/BPO industry. The major limitation of this chapter is conceptual in nature, which will definitely form a base to test empirically.


2011 ◽  
Vol 4 (12) ◽  
pp. 37 ◽  
Author(s):  
Steven H. Appelbaum ◽  
Anis Samaha

The objective of this article is to study the effectiveness of the company-partner relationship when outsourcing business processes in a large aerospace company. The intent is to supplement existing anecdotal evidence with data collected through a structured methodology in an effort to highlight process inefficiencies that may lead to hidden costs. Recommendations are provided to management as a means of addressing the process gaps to improve productivity. A literature review was conducted and a selection of findings from relevant papers and studies were retained as best practices for a successful outsourcing venture. These findings were then used to generate questions as part of a survey. The latter was distributed to 90 employees and managers from both the company and the vendor with the purpose of identifying gaps with the literature. A mismatch between the survey results and the literature would signal an improvement opportunity requiring management of attention. Although the overall health of the outsourcing process is satisfactory, several aspects of the working relationship were found to be deficient and the cause of inefficiencies (i.e. loss time, frustration, increased cost ). In particular, employees from both sides found a lack in upfront planning, communication of expectations, and information sharing. Furthermore, both employees and managers expressed concern about the need for training to better deal with cultural differences and motivation.


2020 ◽  
pp. 236-268
Author(s):  
Kijpokin Kasemsap

This chapter reveals the role of strategic outsourcing in global business, thus describing the theoretical and practical concept of strategic outsourcing; the management theories related to strategic outsourcing; the applications of Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO); and the significance of strategic outsourcing in global business. The fulfillment of strategic outsourcing is vital for modern organizations that seek to serve suppliers and customers, improve business performance, enhance competitiveness, and reach continuous achievement in global business. Therefore, it is necessary for modern organizations to explore their strategic outsourcing, establish a strategic plan to usually check their practical advancements, and immediately respond to strategic outsourcing needs of customers in modern organizations. The chapter argues that applying strategic outsourcing in global business has the potential to increase organizational performance and attain business goals in the digital age.


Author(s):  
Afang Andow ANDOW ◽  
Zainab DABO ◽  
Enenche Cletus EJEH

The study examines the impact of outsourcing on organizational performance of listed food and beverage firms in Nigeria. In spite of the rapid drift in outsourcing, there are limited published sources of literature related to outsourcing in Nigeria, and also previous studies shows contradictory results. The study uses a correlation design, and used secondary data as the main instrument of data collected from the financial statements of the firms contained in the fact-book of the Nigeria Stock Exchange (NSE). The population and sample of the study includes all the eighteen (18) food and beverages firms listed on the floor of the Nigeria stock exchange between2007-2016. Ordinary Lease square (OLS) regression analysis using statistical package for social science (SPSS) was employed to analyze the data and test the hypotheses. The findings reveal that both business process outsourcing and knowledge process outsourcing have a positive and significant impact on organizational performance of listed food and beverage firms in Nigeria. The study concludes that business process outsourcing and knowledge process outsourcing have significantly impacted on the organizational performance which is profitability and competitive advantage of the listed food and beverages firms in Nigeria. The study recommends that the management of these firms should engage in outsourcing strategy in decision making by outsourcing its business processes and knowledge processes in order to increase their profit and achieve performance.


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