NO. PARTICULARS PAGE NO.

1 DECLARATION i

2 ACKNOWLEDGEMENT ii

3 INSTITUTE CERTICATE iii

4 COMPANY CERTIFICATE iv

5 EXECUTIVE EUMMARY v
CONTENTS
6 CHAPTER 01- INTRODUCTION 01 - 11

7 CHAPTER 02- COMPANY PROFILE 12 - 15

CHAPTER 03- RESEARCH DESIGN AND 16 - 19

8 METHODOLOGY

9 CHAPTER 04- THEORETICAL BACKGROUND 20 - 24

CHAPTER 05- ANALYSIS AND 25 - 33

10 INTERPRETATION OF DATA

11 CHAPTER 06- FINDINGS AND SUGGESTIONS 34 – 35

12 CHAPTER 07- CONCLUSION 36

APPENDIX I
13 LEARNING THROUGH PROJECT 37
APPENDIX II
14 BIBLIOGRAPHY 38
APPENDIX III
15 QUESTINNAIRE 39 - 40
 EXECUTIVE SUMMARY

This project is based on one of the major issues faced by the HR department in the BPO industry.
I have taken this opportunity to the best extent and I am attempting to analyse various concepts
and provide reviews to the existing situation on HR challenges in BPO.

This research project critically evaluates dimensions such as Motivation, Salary and other
benefits, Organizational Culture, Career development, Access to immediate supervisors working
environment, rewards and recognition, training and development, influence in key decision
making, proper job descriptions, performance management, workload and pressure shift timings,
Fair and Equal Treatment.

Human resources are regarded as the key, sustainable and difficult to reproduce competitive
advantage in any service sector. Therefore, attracting, developing, retaining and engaging talent
are crucial to the survival and growth of any service oriented firm. This project focuses on the
challenges of human resource management in the pune regional BPO sector.

This project begin with the introduction of HR challenges and strategies followed by an
operational overview. Then introduce our research methodology that taps into managerial
perspectives on certain challenges of HR, namely attrition, performance management, Work-Life
Balance, compensation.

Theoretical background is the base of the study that is the part of this study before the analysing
the data. As per the study required there are some questions which focuses on the HR challenges
in BPO sector. Those are interpreted in the data analysis and interpretation.

The project concludes with a discussion of research findings and their suggestions for HR theory
and practice. The project end with the references which are the crucial part of the study related
the

HR challenges in BPO sector at pune region.

My internship at Business Solutions, Pune was a great exposure to the industry. After going
through my summer training, I had a firsthand experience of how an industry as well as HR
department functions.

CHAPTER 01
INTRODUCTION
 CHAPTER 01
INTRODUCTION

Business process outsourcing (BPO)

business process outsourcing is a subset of outsourcing that involves the contracting of the
operations and responsibilities of a specific business process to a third-party service provider.
Originally, this was associated with manufacturing firms, such as Coca-Cola that outsourced
large segments of its supply chain.

BPO is typically categorized into back office outsourcing, which includes internal business
functions such as human resources or finance and accounting, and front office outsourcing,
which includes customer-related services such as contact Centre services.

BPO that is contracted outside a company's country is called offshore outsourcing. BPO that is
contracted to a company's neighbouring (or nearby) country is called nearshore outsourcing.

Often the business processes are information technology-based, and are referred to as ITES-
BPO, where ITES stands for Information Technology Enabled Service Knowledge process
outsourcing (KPO) and legal process outsourcing (LPO) are some of the sub-segments of
business process outsourcing industry.

History of BPO

The concept of outsourcing started with Ross Perot when he founded Electronic Data Systems in
1962. EDS would tell a prospective client, "You are familiar with designing, manufacturing and
selling furniture, but we're familiar with managing information technology. We can sell you the
information technology you need, and you pay us monthly for the service with a minimum
commitment of two to ten years.
BPO is the act of transferring some of an organization's repeated non-core and core business
processes to an outside provider to achieve cost reductions while improving service quality.
Because the processes are repeated and a long-term contract is used, outsourcing goes far beyond
the use of consultants. If done well, BPO results in increasing shareholder value. The main
difference between BPO and more traditional IT outsourcing is that BPO offers companies a way
of achieving transformational outcomes much more quickly. In a typical BPO contract, a service
provider takes over a specific corporate function. Effective BPO encompasses much more than
just changing who is responsible for performing the process. In BPO, the outside provider not
only takes on the responsibility to manage the function or business process, but also re-engineers
the way the process has been traditionally done.

The next generation of Business Process Outsourcing has emerged as a priority for businesses
looking to better options in managing their application portfolios. The first wave offered low-
cost, off-shore development labor, but today firms are demanding new, less risky options for
applications that are strategic, complex, or mission-critical, while still taking cost into
consideration. Outsourcing has moved from a niche technology management tool to a
mainstream strategic weapon. Business Process Outsourcing leverages process driven
efficiencies in terms of organizational excellence, responsiveness & branding, financial
efficiency and customer relationship. BPO is emerging as a powerful and flexible approach that
business leaders can use to achieve a wide range of tactical and strategic aims. The most
common business process that gets outsourced is call centers. Call centers and Help Desks of
many multinational and fortune 500 companies are being outsourced to low waged, English
speaking countries such as Philippines and India. Countries like India with vast IT human
resources are also attracting outsourcing from American IT/Technology companies to outsource
their IT Help Desks. Many of these help desks are state of the art with latest Help Desk software
and help desk hardware with technical savvy IT graduates behind them answering your
questions.

It can be defined as the transfer of an organization's entire non-core but critical business
process/function to an external vendor who uses an IT-based service delivery. By doing so, BPO
helps an organization concentrate on its core competencies, improve efficiency, reduce cost and
improve shareholders' value. Though IT outsourcing has been happening for so many years, an
increased momentum has been witnessed since the late 1990s due to the rise of Internet and
Communication technologies. Several global giants from various industries have begun to realize
the importance of BPO and have started outsourcing their non-core business functions. This has
given rise to many specialized BPO vendors across the globe, with India being a major hub
owing to its large computer-literate English-speaking population, low billing rates, strategically
favorable time zone and high quality. The BPO market in India is expected to grow exponentially
in the coming years.

Although the term "business process outsourcing" (BPO) has gained visibility in the IT services
industry only in the past four to five years, the service offering itself has existed for decades. For
example, several of the largest service providers have significant legacy revenue streams that are
derived from medical claims processing contracts. In many instances, these contracts include the
entire back-office function. The outsourcing of payroll administration, an accepted practice for
many years, is another illustration of the true age of the BPO market.

This market is now experiencing noticeable momentum in terms of wider user acceptance and
the emergence of new service offering categories, as well as a proliferation of providers from
which to choose. Service providers offer BPO for literally hundreds of business processes. Some
of these service offerings are very stable; some are just emerging and are, therefore, largely
untested.

Benefits

The main advantage of any BPO is the way in which it helps increase a company's flexibility.
However, several sources have different ways in which they perceive organizational flexibility. In
early 2000s BPO was all about cost efficiency, which allowed a certain level of flexibility at the
time. Due to technological advances and changes in the industry (specifically the move to more
service-based rather than product-based contracts), companies who choose to outsource their
back-office increasingly look for time flexibility and direct quality control. Business process
outsourcing enhances the flexibility of an organization in different ways:

Most services provided by BPO vendors are offered on a fee-for-service basis, using business
models such as Remote In-Sourcing or similar software development and outsourcing models.
This can help a company to become more flexible by transforming fixed into variable costs. A
variable cost structure helps a company responding to changes in required capacity and does not
require a company to invest in assets, thereby making the company more flexible.
Another way in which BPO contributes to a company’s flexibility is that a company is able to
focus on its core competencies, without being burdened by the demands of bureaucratic
restraints. Key employees are herewith released from performing non-core or administrative
processes and can invest more time and energy in building the firm’s core businesses. The key
lies in knowing which of the main value drivers to focus on – customer intimacy, product
leadership, or operational excellence. Focusing more on one of these drivers may help a
company create a competitive edge.

A third way in which BPO increases organizational flexibility is by increasing the speed of
business processes. Supply chain management with the effective use of supply chain partners and
business process outsourcing increases the speed of several business processes, such as the
throughput in the case of a manufacturing company.

Finally, flexibility is seen as a stage in the organizational life cycle: A company can maintain
growth goals while avoiding standard business bottlenecks BPO therefore allows firms to retain
their entrepreneurial speed and agility, which they would otherwise sacrifice in order to become
efficient as they expanded. It avoids a premature internal transition from its informal
entrepreneurial phase to a more bureaucratic mode of operation.

A company may be able to grow at a faster pace as it will be less constrained by large capital
expenditures for people or equipment that may take years to amortize, may become outdated or
turn out to be a poor match for the company over time.

Although the above-mentioned arguments favour the view that BPO increases the flexibility of
organizations, management needs to be careful with the implementation of it as there are issues,
which work against these advantages. Among problems, which arise in practice are: A failure to
meet service levels, unclear contractual issues, changing requirements and unforeseen charges,
and a dependence on the BPO which reduces flexibility. Consequently, these challenges need to
be considered before a company decides to engage in business process outsourcing.

A further issue is that in many cases there is little that differentiates the BPO providers other than
size. They often provide similar services, have similar geographic footprints, leverage similar
technology stacks, and have similar Quality Improvement approaches.
Threats

Risk is the major drawback with business process outsourcing. Outsourcing of an information
system, for example, can cause security risks both from a communication and from a privacy
perspective. For example, security of North American or European company data is more
difficult to maintain when accessed or controlled in other countries. From a knowledge
perspective, a changing attitude in employees, underestimation of running costs and the major
risk of losing independence, outsourcing leads to a different relationship between an organization
and its contractor.

Risks and threats of outsourcing must therefore be managed, to achieve any benefits. In order to
manage outsourcing in a structured way, maximising positive outcome, minimising risks and
avoiding any threats, a business continuity management (BCM) model is set up. BCM consists of
a set of steps, to successfully identify, manage and control the business processes that are, or can
be outsourced.

Industry size

India has revenues of US$10.9 billion from offshore BPO and $30 billion from IT and total BPO
(expected in FY 2008). India thus has some 5-6% share of the total BPO Industry, but a
commanding 63% share of the offshore component. This 63% is a drop from the 70% offshore
share that India enjoyed last year: despite the industry growing 38% in India last year, other
locations like Philippines, South Africa, and even Kenya have emerged to take a share of the
market. There are 865 firms in the BPO/BPM sector in India as of March 31, 2014, with 0.97
million workers with revenue of US$ 20 billion. By the year 2016, the BPO Industry in
the Philippines will employ 1.2 million workers with $25 billion in revenues. The South African
call Centre industry has grown by approximately 8% per year since 2003 and it directly employs
about 54,000 people, contributing 0.92% to South Africa's gross domestic
product (GDP). China is also trying to grow from a very small base in this industry. However,
while the BPO industry is expected to continue to grow in India, its market share of the offshore
piece is expected to decline. Important centres
in India are Coimbatore, Bangalore, Gurgaon, Chennai, Kolkata, Mumbai, Pune, and New Delhi.
The various HR Challenges of the Organization are as below

1. Attrition challenge.
2. Interpersonal relations challenge.
3. Performance management challenge.
4. Compensation challenge.

Attrition
“A reduction in the number of employees through retirement, resignation or death” employees,
do leave, either because they want more money, hate the working conditions, hate their co-
workers, want a change, or because their spouse gets a dream job in another state. There are
massive costs associated with attrition or turnover and, while some of these are not visible to the
management reporting or budget system.

Why people are leaving BPOs?

The reason for the high rate of attrition in the BPO sector particularly call Centre segment range
from lack of comfort of enrichment potential in terms of career growth. Attrition is not a new
problem and it has existed earlier and will continue to exist in any industry.
In spite of the salaries and facilities being high (especially for a graduate who starts his / her
career with a BPO company) the average attrition rate is very high in this industry. There are
numerous reasons for the attrition to be high which can be categorized into two broad
classifications. The first can be coined as Drive Attrition which is caused due to the employer;
the second one can be termed as Drag Attrition which is caused due to the employee.
The reasons for Drive Attrition are due to employers’ policies of terminating the employee at the
end of the contract period for employment. Also the quality policy of the BPO companies guides
them to retain only the most productive employee and hence makes them to terminate employee
at regular intervals. A BPO company operates 24 hours a day and 365 days a year. Graveyard
shifts and odd hours which suit the foreign clients create lot of problems to the employees.
Depression caused due to change of 24-hour biological rhythm of the body, and also, loss of
employees’ personal life the companies do not have a particular day as weekly off for its
employees. The employees are not even entitled for national holidays declared by Government of
India, as the company works with client calendar. The call agents can avail leave (which should
not affect the schedule) only with prior consent, and any unauthorized absence is a sufficient
reason for terminating an employee. Drag Attrition is basically due to the host of insecurities and
vulnerabilities associated with the taking up a career with a BPO company.
1. No career prospects.

The job of a call center agent (to start off) can be compared to a telemarketing or a telephone
operator. Hence the scope to take up any other job (in case needed) or change of field is ruled
out, as the experience gained in a call center will not be an iota of importance. Many others quit,
as the chance to climb up the corporate ladder is bleak. Only a few very get promoted to the
cadre of team leader and as soon as promotions are announced the many of frustrated employees
quit.
2. Lack of creativity

The work in the BPO Company needs no new creativity which adds to the enthusiasm of the
employee. Voice Calls are the only thing which governs the activity of the BPO. Further BPO
company work does not provide any scope for skill up gradation for the employee. The employer
trains the employee to speak good English and nothing else which adds to the Drive attrition rate.
3. Monotony of work

The job remains same as to call clients and talk business. Same kind of lines repeated in the calls
from the login point to logout point. Employees are bored of the same talks all through their
working hours which lead to mental fatigue. Also the same kind of techniques and no manual
intervention, everything is done technologically which makes a person as a robot which
ultimately leads to fatigue. Attrition rate in the BPO sector is still very high because of
Monotony of work.
4. Drives towards higher education
Most of the employees with professional degrees like BE, MCA and others appear for higher
education or grooming them, for highly specialized courses quickly move out.
5. Switching jobs for high salaries
Poaching of employees by other competitive BPOs for higher salaries drives them to change
jobs. The employees expect salary revision once in 4-6 months and if not they move to other
organizations because of the rapid growth of the industry. Sometimes due to personal reasons
like getting married (especially for the male employees) or falling in love or change of place.

Interpersonal relations
Performance of members of any organization depends on their ability to effectively interact with
their superiors, subordinates and co-workers within the organization and consumers, suppliers
and general public outside. Interpersonal relation, therefore is a very important issue involving
any organization. Most organizations have people problems rather than business problems.
People problems are due to faulty interpersonal relations, which hinders the attainment of
organizational goal. Efforts are therefore made to enhance the interpersonal skills of the people at
work.

FACTORS AFFECTING INTERPERSONAL RELATIONS:

Based on past experience people make assumptions about the nature of the other and of the
particular kind of situation they are in (e.g. Competition or Cooperation). Each person develops
positive or negative feelings that contribute to enhanced or diminished perceptions of self, the
other and the current situation. These perceptions contribute to evaluation of the other person in
this situation and lead to the formulation of intentions to interact in specific ways to accomplish
personal objectives. The consequences of that behaviour and subsequent interactions generate
new inputs for another set of reactions.
A. Personality Factors:

When trying to understand your feelings and behaviour, it helps to be aware that how you think
and feel about yourself and others may be very unlike how they think and feel about themselves
and you. These different evaluation and reactions depend on each individual's self-concepts,
value system; frame of reference, defensiveness, interpersonal relationship needs and feelings.

(I) Self-Concept: Self-concept is a reflection of all the past experiences one has with others and
includes characteristics which differentiates from others. Once self-concept is established and
certain specific patterns of behaviour are adopted, it tends to resist change. In order to maintain
interpersonal environment and to maximize congruence of harmony, certain mechanisms are
used.

Performance management challenge

Developing a performance management system is a challenge for most human resources

departments, because there are so many elements critical to the process. Performance
management is the system wherein an employer can determine job fit, individual and team
productivity, aptitude, professional expertise and technical skills. In his article "Human
Resources: The Big Issues," Bloomberg Business Week contributor Marshall Goldsmith says,
"Companies have always struggled to measure and track their programs and activities aimed at
improving people performance and level of engagement." A relatively new small business with
an inexperienced workforce is especially challenging--human resources training specialists can
develop curriculum that improves supervisory and management skills. Your supervisors and
managers are responsible for conducting employee performance appraisals; therefore, they must
be fully competent and comfortable with evaluating employees in a thorough and objective
manner. In addition, employees need to be aware of how the performance management system
works and how best they can meet job expectations to enhance their job performance.
Communication may be an issue in this regard. Employees and often managers dread the annual
performance appraisal because so many are conducted improperly and ineffectively.

Emotional and physical stability of employees

Providing with wages and salaries to employees is not sufficient in today’s world. The human
resource manager should maintain proper emotional balance of employees. They should try to
understand the attitude, requirements and feelings of employees, and motivate them whenever
and wherever required.
Most people today lead a life that is busy and filled with highly stressful situations. People cope
with the intensity of their lifestyle in different

Ways and this means some people are more sensitive to stress, due to their coping mechanisms.

A study by Mikolajczak et al (2007) investigated occupational stress and the emotional labour
processes that people undertake in order to combat such stress. In many ‘service work’
occupations, such as those presented through Flexy, workers have high levels of interpersonal
contact and are generally required to conform to emotional ‘display rules’, which are defined as
“organizationally-required emotions during interpersonal service transactions”. Emotional
Labour (EL) is “the act of managing emotions and emotional expressions in order to be
consistent with organizational ‘display rules’”; simply, this means people pretend, at different
levels, to feel the way their workplace expects them to as opposed to displaying the emotions
they truly feel.

This control over emotions was found to have a profound effect upon workers as it often presents
a “clash of inner/real and required feelings”; it presents an emotional dissonance which is
associated with burnout syndrome, a chronic response pattern to stressful working conditions
with high levels of interpersonal contact. When a person experiences emotional dissonance they
have a choice of two strategies; a person can engage “surface acting” (SA) or “deep acting”
(DA). Surface acting is generally accepted as maladaptive as it is the process of modifying
outward displays of emotions, through hiding felt emotions or faking unfelt emotions, and
therefore increases emotional dissonance. On the other hand, DA is the process of modifying
internal emotions to match display rules and is achieved through attention employment or
cognitive changes, which respectively refer to focusing on positive aspects of a situation or
reconsidering the situation in a more positive way.

Evidence suggests that DA is a less detrimental strategy than SA because workers who employ
the strategy of DA experience less emotional dissonance and as such there are reduced
correlations between this strategy and burnout syndrome. Prevention of burnout syndrome,
which is characterized by three parameters – Emotional exhaustion, depersonalization or
detached attitude towards others and reduced personal accomplishment – in employees is key to
keeping rates of absenteeism low and maintaining high levels of job performance, whilst also
preventing deterioration of both the mental and physical health of the employee.

It has been found that the trait of Emotional Intelligence (EI), which is the ability to recognize
one’s own and others emotions, influences EL in certain ways; a person expressing high EI is
predisposed to think/act in such a way as to encourage positive emotional experience and as such
is more prone to engaging the strategy of DA. As the majority of service work, including the
occupations in Flexy, enlist emotional display rules that require the presentation of positive
emotions, workers with high levels of trait EI are more likely to find the act of “expressing the
required emotions [easier] than their lower counterparts” and subsequently experience lower
levels of emotional dissonance and burnout. Encouraging a positive-thinking attitude is likely to
prevent high levels of burnout in employees and as such prevent detrimental costs to both the
organization and the employees.

Compensation challenge
Business owners and HR managers face employee compensation challenges even more than in
the past. It used to be employees were happy to receive a fair wage for a day’s work; however,
that’s not always the case with a varied workforce. Everyone wants more money, and that
includes your employees. Some may want a higher position, title, or even a better office space.
There are those who pray for a benefit plan that includes healthcare or retirement options.
Some long for flex time to help balance their work and home lives. Then there are those that
want the world and, no matter what you do, you may not be able to please these types.
 CHAPTER 02
COMPANY PROFILE
 CHAPTER 02
COMPANY PROFILE

HISTORY

AMG Business Solution India, headquartered in pune, is a leading end to-end HR solutions
company was established in 2016 was with a focus on Executive Search, Recruitment, Training
& Learning and Temporary Staffing services to client organizations. Amg Business Solution one
of the HR consultancy services, has the perfect solution to all your hiring requirements. AMG
work exceptionally hard to make sure you always find a candidate that matches the aspirations
you have for your company.

AMG Business Solution aims to provide fast, simple and cost-effective solutions for our clients,
through strategic advice and solutions in the area of recruitment process outsourcing, Talent
Acquisition Strategy and planning, Compensation Advisory, University Recruitment, Leadership
Acquisition, Talent Branding, Role Design, Performance Management System, Outplacement
and Exit Management. Today AMG have emerged as a powerful brand in the HR industry,
offering integrated HR solutions to our customers.

ABOUT COMPANY
Company partner with company’s clients to expand their business potential by providing
solutions in Executive Search & Selection, Middle Management Hiring, Project Based Hiring
and Recruitment Process Outsourcing through integrated suite of leadership services. Company
have been successfully able to deliver solutions for all kind of global and local business industry
specific demands.

Company have the ability to align diversified and intricate HR needs of our clients by providing
reliable and strategic staffing solutions. By understanding the significance of aligning talent
strategy with business Strategy Company tend to offer workforce solution that drive businesses
forward. Our capability in fast delivery has gained us the reputation of being a reliable and
efficient global executive search firm.

SERVICES OF COMPANY

1) HR Consultancy Services

Company do not take any advance payments. Our HR consultancy firm works on a commission
basis. Only the pre-decided % of the candidate’s CTC is charged on the date of joining of the
candidate and not a day before that.

2) Bulk Hiring – company provides

Work flow

1) Identify the Requirement -> company devise the hiring strategy basis the number of positions
and kind of profiles that you need

2) Reaching out Basis the requirement shared, Company start reaching out to the relevant set of
people through multiple sources.
3) Interview Coordination: - Company skim through the profile shared with us, screen the
prospective and line up the bulk interviews

4) Company make sure Company deliver the result of closing in the stipulated number of
positions in the decided timeframe

3) General Staffing Solutions

Our business needs happen to as exceptional as the kind of professionals you seek to
take on the tasks. company at Accelere very well understand this concept and our
team works to get a profound know-how of your business and the operating
environment, thereby letting ourselves in the ideal position so as to deliver result
oriented solutions for you.

Our team of recruitment professionals possesses great understanding of the industry

and the latets of employment trends, which in turn enables us to fully understand your
talent requirements. Company cater to all your general staffing needs, be it a
temporary one or permanent.

4) Outsourcing

5) Permanent Recruitment Solutions

6) Professional Staffing Solutions

7) Payroll Management Solutions

VISION AND MISSION OF COMPANY

Vision of company
Vision of company is pretty simple – we want to be the #1 Manpower Service Providers.
Company vision is also to be the preferred company for Manpower Placement and all other
solutions offered to our clients. Company aspire to become the most preferred organization for
our clients, candidates and employees.
Mission of company
To build a vibrant organization by providing quality staffing solutions, along with innovating
ourselves constantly, to be the leader of global trends in the sector. Company also have a mission
to change lives every day – one job at a time.

CLIENTELE
 CHAPTER 03
RESEARCH DESIGN AND
METHODOLOGY
 CHAPTER 03
RESEARCH DESIGN AND METHODOLOGY

INTRODUCTION

Third is research is for the challenges faced by HR in BPOs and the identification a of the
attrition reasons in the BPO sector of pune region. And compare the various practices to
overcome those challenges.

NEED /SIGNIFICANCE OF THE STUDY

Various study has been undertaken to know the fact of BPO. We can find number of books,
journals, articles and study on BPO but the efforts taken by the HR team in retaining the young
talent has always been overlooked by everyone. As young talent are attracted towards BPO, they
lose their health and many other things to be in the industry (that we can explore and learn in
future studies) in the same way even company works upon its method in retaining such talents.
The steps taken by the HR team and department cannot be overlooked. The efforts put in by the
HR team needs to get some attention. As BPO industry has always been looked upon from a
young professional’s point of view, being a researcher I want to look at this matter from both the
prospects. The research aims to establish the best practices used in resolve the challenges in the
BPO sector.

OBJECTIVES OF THE STUDY

To understand and analyses the challenges faced by HR in the BPO sector.

To identify the factor highlighting the challenges in respect to HR practices In BPO sector.

To identify major areas of improvement if any and provide valuable suggestions improve

The efficiency of the BPO.

SCOPE OF THE STUDY

The scope of project very wide. It consists of the study of the challenges of HR in the BPO
sector and how to overcome on those problem.

As well as effectiveness of the study of the employee and organization bonding in BPO sector.

However the research was conducted to fulfill certain objectives and these objectives in turn will
fulfill some purpose and is of significance for one or many parties.

The study provides the practical insight of the BPO industry and various activities and functions
of the BPO.

DATA COLLECTION

Research process

An observatory research method has been followed for this research as in observatory research
paper classification or identification of the elements and characteristics of the subject is done.
The following steps involved in research.

1. Define research problem.

The area of research was to find out the A study of HR challenges in BPO sector of pune
region.

2. Tool used.

Interviews of various BPO companies’ HR in pune region.

METHODS OF DATA COLLECTION
Data are classified under two categories:

1. Primary data.

2. Secondary data.

1. Primary data.

Primary data is collected through first hand research, by the researcher interacting with
People. Primary data can be collected through meetings, interviews, through focus groups and
surveys.

Sources of primary data:

Interviews of HRs and employees

Analysis.

2. Secondary data

Secondary data refers to information which we gather through already published/existing studies,
reports, surveys, from records of earlier surveys and interviews, from literature, publications,
internet and broadcast media, secondary data is much easier to gather than primary data.

Sources of secondary data:

Internet and intranet.
Reference books.
HR manuals.
SAMPLE DESIGN

The population for this research are the BPO companies in pune region there were almost 30
BPO companies in pune region. Researcher choose out of those through the simple random
sample method which are namely intelnet global services, digicall, capital India, ITcube and
eclearx were interviewed for additional information.
The questionnaires as well as personal interview method were conducted in order to get in depth
information and facts.

LIMITATION OF THE STUDY

It should be noted that the study was conducted only in the pune region. The research study is
limited to a few aspects.

It will focus on the employees as well as the HR. In conducting interviews, the employees as
well as the HR will be biased towards their own viewpoints and these may not gel with each
other. Being a researcher, we cannot focus on a particular viewpoint.

We will need to focus on viewpoints of the employees as well as the HR. It is possible that the
information provided by either the employees or the HR may not be correct, so we will have to
work in a margin of error. Each of these processes will have their own sets of strengths and
weaknesses.

So, it can be safely assumed that the primary data will be very varied and every changing, so it
may not be possible to accurately represent the industry. The amount of literature on the issue of
BPOs is limited.
 CHAPTER 04
THEORETICAL
BACKGROUND
 CHAPTER 04
LITERATURE REVIEW AND THEORETICAL
BACKGROUND

A CRITICAL STUDY ON EMPLOYEE ATTRITION IN PRIVATE ENGINEERING

COLLEGES AT KURNOOL
(P. SUCHITRA Professor & HOD of MBA, Dr. K. V. Subba Reddy Institute of Technology,
Kurnool, Andhra Pradesh, India)

This paper highlights the context within which business process outsourcing (BPO) has rapidly
grown in India and the critical need to investigate the dynamics of human resource management
(HRM) practices and systems in this sector. Using a mixed-method approach involving both in-
depth interviews and self-completing Questionnaires, we analyze the nature of HRM systems in
BPO organizations

Operating in India. The analysis is based on a sample of 51 BPO companies, a majority of which
are located near the capital of New Delhi. The results focus on the nature and structure of work
and organization of Indian

BPOs, as well as the strategic role played by HRM in such organizations. Furthermore,

The findings highlight the way specific HRM practices such as recruitment, Performance
appraisal, training and development, and compensations are implemented. Our study suggests the
existence of formal, structured, and rationalized HRM systems in Indian BPOs. A number of
insights related to HRM policies and practices are shared by the HR managers interviewed
shedding more

Light on the inner workings of the Indian BPO companies and their challenges. The analysis
provides original and useful information to both academics and practitioners and opens avenues
for future research on the nature of HRM systems and practices in the Indian BPO industry. The
changes in the Indian economy over the last 15 years or so have been responsible for the growth
of the information technology sector and, after that, the BPO industry. From its independence in
1947 to 1991, India adopted a “mixed economy” approach (emphasizing both private and public
enterprise) which effectively reduced entrepreneurship and global competitiveness—both
necessary for national growth. Despite the formalities of much centralized planning for decades,
the Indian economy failed to reach its potential and, in fact, hit bottom in 1991. India
experienced a double-digit rate of inflation, decelerated industrial production, a very high ratio of
borrowing to then, and a dismally low level of foreign exchange reserves. Foreign reserves
became so low that they were barely able to meet the cost of three weeks’ imports. The Indian
government pledged gold to the Bank of England to meet the country’s foreign exchange
requirements. The World Bank and the IMF agreed to bail out India on the condition that it
changed from a regulated regime to a “free market economy.” To meet these challenges, the
government announced a series of economic policies beginning

Indian companies are facing a fast growth-high opportunity “challenge. Human capital is the
epitome of their

Human Resource Challenges in BPO Sector and Identifications of Best Practices in Retaining
Such Talent in Delhi NCR Region. (Rupali Rajesh Sharma)

Business growth which makes it imperative for the organizations to deal with this never ceasing
problem of Attrition. Whatever be the reason for employees leaving the job, it’s a issue of
concern for organizations to retrospect on their Strategies and avert turnover and build Brand
loyalty for themselves in this competitive market environment. Attrition or employee turnover is
a natural reduction in the workforce of an organization for various reasons like retirement,
resignation, sickness, death or for reasons that cannot be disclosed. Many of the undisclosed
factors which can be perceived are, anticipating higher pay, lack of job security, lack of career
advancement, non-compatibility with fellow employees, desire for change in search of better
opportunities and family reasons. High attrition rates result in escalating
Recruitment and training costs and lot of time involved in new employee adjustment to the work
environment and thereby enhance their morale. The present study aims to look into the reasons
for attrition in select private engineering colleges at Kurnool. Needless to say, companies are
serious in averting this problem by resorting to solutions ranging from tradition to extraordinary
HR Strategies. The study reveals that employees are shifting their jobs mainly for pay related
issues followed by job security, better opportunities and congenial working conditions.
Business Process Outsourcing (BPO) is defined as the delegation of one or more IT-sensitive
business processes to an external provider that in turn owns, administers and manages the
selected process based on defined and measurable performance criteria (Kumar & Kumar, 2005).
Big companies regularly outsource their non-critical work to an outside entity, which does the
work based on certain preset criteria. Business process outsourcing (BPO) is as an act of
delegation of certain Information Technology (IT)-intensive business processes from inside an
organization to an outside or external service provider that in turn owns, administers and
manages the process based on defined and measurable performance criteria (M. Ashok Kumar
and S. Selva Kumar: BPO – What and Why: a paper presented at an Indian Institute of Public
Administration seminar). With the global telecommunications infrastructure now well-
established and consistently reliable, BPO lets companies take full advantage of the globalization
by exporting certain outside providers who can do it cheaper, faster, or better. The benefits in
terms of cost and competition are obvious, but it is also an effective way for companies to focus
more on their core competencies. Many peripheral functions, such as payroll and benefits,
customer services, call centres, technical support, and even manufacturing can be and are
outsourced (Rick L Click and Thomas N Dueling: Business Process Outsourcing: The
Competitive Advantage). However, with the increasing specialization, BPO is no longer limited
to the above areas. Today’s outsourcing involves complex jobs, such as software design,
financial analysis, and even medical prescriptions. For example, Indian radiologists now analyses
computed tomography (CT) scans, and chest X-rays for American patients out of an office in
Mumbai, Bangalore, or Delhi. In the United States, radiologists are among the highest-paid
medical professionals, often earning more than US$300, 00 a year to evaluate magnetic
resonance imaging (MRI), CT scans, and Xrays.

In India, radiologists work for less than half that. Earnst & Young has hundreds of accountants in
India processing US tax returns. Starting salary for an American account ranges from S$40,000
to US$50,000, whereas Indian accountants are paid less than half that amount (Nelson D
Schwartz, “Down and Out in White-Collar America,” Fortune (June 23, 2003, pp. 79-86).

Human Resource is a strong aspect of every organization. Human resource is the department who
connects employees to the management. It plays a vital role in building and destroying any
organizations. Human resources is the set of individuals who make up the workforce of an
organization, business sector, or economy. "Human capital" is sometimes used synonymously
with human resources, although human capital typically refers to a more narrow view (i.e., the
knowledge the

Human Resource Challenges in BPO Sector and Identifications of Best Practices in Retaining
Such Talent in Delhi NCR Region.

Human Resource Management in Indian BPO.

-Mohan Thite & Bob Russell.

BPO industry being one of the significant contributors to the economic development of the
nation, it is important to remove the major obstacles in the smooth and continued functioning of
the industry. Being highly dependent on human resource, the major problems faced by the
industry are attrition and UN employability due to inadequately skilled supply of manpower.
This study conducted in Kochi region of Kerala tries to ascertain the major factors of Job
Satisfaction and its level among the BPO employees using systematic sampling. BPO industry
being one of the significant contributors to the economic development of the nation, it is
important to remove the major obstacles in the smooth and continued functioning of the industry.
Being highly dependent on human resource, the major problems faced by the industry are
attrition and UN employability due to inadequately skilled supply of manpower. This study
conducted in Kochi region of Kerala tries to ascertain the major factors of Job Satisfaction and
its level among the BPO employees using systematic sampling.
Job Satisfaction has been one of the interesting and most widely studied topics among the
researchers. The several definitions of the job satisfaction conclude all the definitions of the Job
satisfaction deal with the emotions that the employees have towards their jobs. This shows the
attitude towards the ‘job in general’ or towards ‘specific facets of the job’. Moreover the job
satisfaction includes how far the outcomes of the work meet or exceed employee expectations.
Some of the studies on Job Satisfaction are Waskiewicz, S. P. (1999), Parent-Thirion, A. (2007)
(Lu, H., While, A. E., & Barriball, K. L. (2007) [13]. Various studies have emphasized the
relevance of studying the Job satisfaction. It is one of the most important motivational factor
leading to the organizational commitment, and other positive work place behaviors. The Job
satisfaction is related to several work place behaviors like attendance at the work, turnover
decisions, decisions to retire, psychological withdrawal behavior, pro social and organizational
citizenship behavior, job performance, work place incivility etc. Judge, T.A., & Klinger, R.
(2008) [10]. The study conducted in a IT industry in Bangalore lays down the most important
motivational factors for the IT employees and re-establishes the jobs satisfaction organization
commitment relationship. Sonia, J. (2010). NAEM, M. (2011) [20] argues that the Job
satisfaction is dependent upon the compensation policies of the organization. The employees
who are satisfied with their jobs are more likely to stay with their organization. Rao, P. G., &
Mallaiah, T. Y. (2012).
A study by Sarin, S., & Saini, V. P. (2011) emphasizes the need for assessing the Job Satisfaction
of the BPO employees so as to combat the future challenges of the BPO industry in the NCR
region. According to Echchakoui, Said; Naji, Abdelhadi Job satisfaction is important due to three
reasons: one of the important determinant of employee’s quality in service delivery, rate of
employee turnover, and an impact on employee performance. The Job Satisfaction of the women
employees in the BPO industry, the job satisfaction variables and the level of job satisfaction
among the women employees of top 3 BPO organizations in South India are assessed by Mary,
C. S. A. (2014)
The BPO industry promises a flourishing future to the Indian economy and society. However due
to the heavy attrition rate, there is anxiety towards the industries growth. Being heavily
dependent on the quality performance from its employees; unless the increasing employee
turnover is managed at the individual organizational level, it can cause heavy financial loss
through lower productivity ratios and finally impair the Industry itself. Hence employee (talent)
retention is the only method to ensure the bright prospects for the BPO sector. The higher Job
Satisfaction can lead to employee retention. It is primarily necessary to identify the factors of the
Job Satisfaction through a confirmatory factor analysis among BPO employees of Kochi region
and then assess the level of the Job Satisfaction so that corrective measures if required can be
provided.
 CHAPTER 05
ANALYSIS AND
INTERPRETATION OF
DATA
 CHAPTER 05
ANALYSIS AND INTERPRETATION OF DATA

The goal of human resource management is to help an organization to meet strategic goals by
attracting, and maintaining employees and also to manage theme effectively. The exponential
rate at which companies are growing, there is constant requirement of maintaining and retaining
the efficient employee.

An analysis of HR departments’ data can help pinpoint why the particular challenges occurs In
BPO and what the company can do to retain the best. The result will help organization’s decision
makers in their struggle to achieve quality and profitability. To understand this, I have created set
of questionnaires for HR challenges of BPO.
1. which of the following is the greatest HRM challenge faced by your BPO organization?

Interpretation: If you compare the greatest HR challenge in pune regional BPO the result is as the
below. As Interviewees described attrition rates ranging 78% in particularly within active pune
region’s BPO. Then is the Performance management 11%, and compensation 11%. As
interpretation shows employee attrition is the enormous issue in BPO sector. We find the strong
reason behind this challenge through the appropriate question.

2. Is employee attrition a problem from your company? If yes, then which level most affected?
 emlpoyee attrition rate

10.00%

voi ce proces s
back-office
proces s
35.00% 55.00%
other

Interpretation: If we compare attrition rates voice and non-voice process, then attrition rates are
significantly lower in non- voice process. Voice process is more stress full and effect on human body.

3. Strong reasons of employee attrition in your BPO organisation?

 Strong reasons of employee attrition

20.00% no career pros pects

30.00% monotony of work
stres sful job
swi tchi ng job for hi gh sa l ary
dri ve towards hi gher education

25.00%
10.00%

15.00%

Interpretation: Above question relate the ranges of all strong reasons of attrition and basis of that
we can identify the where should improvement and changes are needed and problem ranges are
No career prospects 20%, monotony of work 25%, stressful job 15%, switching job for high
salary 10 %, and drive towards higher education is 30% means it shows that the where is take
more efforts for the improvement.

4. What kind of strategies do you adopt to control the attrition rate?

 strategies adopt to control the attrition rate

20.00% Better Sal a ri es

30.00% Better Worki ng Condi tions
Better Qua l ity of Work Li ke
Better Incentives
10.00% Better Promotion Pol i ci es

20.00% 20.00%

Interpretation: As per the above chart shows the strategies used by organization to control
attrition rate. The survey shows ranges action taken for better salary 30%, better working
conditions 20%, better quality of work like 20%, better incentives 10%, and better promotion
policies 20% on this bases we can find the action taken or strategies used by organization is
correct or not or where changes are needed.

5. How much percent of employee left their job because of monotony of work last year in your
organization?
 employee left their job because of monotony

7.00%
20.00% 0%-10%
11.00% 11%-20%
21%-30%
31%-40%
12.00%
40%-60%

50.00%

Interpretation: if we compare the range of percentage is the employee left their job monotony of
work then we get the range of 11%-20% very huge which is 50%. Then 20% range is 0%-10%
and then: 21%-30% - 12%, 31%-40% -11% and, 40%-60% - 07%.

6. Which are the reasons behind the performance management make difficult?
 reasons of performance management make difficult

25.00% La ck of cons i stency

l ack of establ i s hed goal s
43.75% l ack of cl ea r strategy
l ack of creadi bi l i ty

18.75%

12.50%

Interpretation: No of respondent show that the lack of credibility is the more responsible to does
performance management all reasons for make difficult to performance management are lack of
consistency 25%, lack of established goals 19%, lack of clear strategies 12%, and lack of
credibility shows the more critical than other 44%.

7. How much you most likely recommend for fair performance management of your BPO
organization?
 fair performance management

12.00%
19.00% poor
good
better
fai r

38.00%
31.00%

Interpretation: If we compare the degree of satisfaction of employee with compensation

management the most of the want more benefits from else its compensation but it better.

8. Are you satisfied with the compensation given by your BPO organization?
 compensation

yes
40.00% no

60.00%

Interpretation: here we found that more employees not satisfied with the compensation but it not
so much big than satisfied employee.
 CHAPTER 06
FINDINGS AND
SUGGESTIONS

CHAPTER 06
FINDINGS AND SUGGESTIONS
Findings
 Attrition is the strong problem than the other BPO challenges in pune region.
 Due to the heavy attrition rate, there is anxiety towards the BPO industries growth. It is
primarily necessary to identify the factors of the reasons of attritions
 There were only five factors adopted for the control hi attrition rate of the BPO employees
those were better salary 30%, better working conditions 20%, better quality of work like
20%, better incentives 10%, and better promotion policies 20% at pune region.
 Monotony of work is the factor which cannot change sometimes organizations. But it is one
of the reason for attrition. Because of monotony last year 11% to 20% employees left their
job in 50% of organizations in pune region.
 Performance management is crucial part of the employee’s motivation and retention and it’s
become challenge lack of consistency 25%, lack of established goals 19%, lack of clear
strategies 12%, and lack of credibility 44%. Which shows the more critical than other.
 40% employees not satisfied with the compensation given by employer. so that compensation
should more faire.

Suggestions
The BPO organizations have strong challenge is attrition and some major reasons of that are, No
career prospects, monotony of work, stressful job and drive towards higher education. For cover
to above Challenges Company should offer management diplomas and MBA courses to their
employees, if fresh graduates want to study further.

Better promotion policies and better incentives can make job interesting and may be it become
solution for avoid monotony of work. The everyday yoga sessions and play sports/outdoor games
can helps to employee for stay stress free.

Problems occur in performance management lack of established goals, lack of consistency, lack
of clear strategies and lack of credibility. If you have good relationships and trust with the
employee. It make transference to organization’s performance management and you work with,
positive growth. Your organizational goals and strategies should clear to all employee.

If organization wants to give fair compensations to employee then really dig deep into your
performance appraisals to identify those who really hit the mark and reward them for it with a
salary increase that reflects their performance.
CHAPTER 07
CONCLUSION

CHAPTER 07
CONCLUSION
The researcher concludes that Major challenge For HR in the BPO sector is employee attrition.
The reasons for high rate of attrition In the BPO sector no career prospective, drive towards
Higher education and monotony of work. The growth of BPO industry is mainly depending on
quality of manpower. Attrition is not a new problem and it has existed earlier and continue to
exist. Particularly In in BPO industry.
It conclude that The Human Resources are the most important assets of an organization. The
success or failure of an organization is largely dependent on the quality of the people working
therein. Without positive and creative contributions from people, organizations cannot progress
and do well. In order to achieve the goals or the activities of an organization, therefore, need to
know about the HR challenges.

The study helps the HR practitioners in BPO sector to get insight into the relationship between
important HR challenges and their relationship with the most important issues.HR managers
need to put in efforts on the development of their employees, building new and innovative
retention and motivational schemes. Use the strategies available to solve the problem but there is
need to use correct strategy for correct problem which is more beneficial for tackle challenges.

LEARNING THROUGH THE PROJECT

I learned through the project In BPO sector attrition is big problem and no career prospects is the
strong reason behind the attrition.
Also I learned as per my topic there are various things which are you should use as your
organization having problem if you don’t use your strategies in correct way it no gives you
output what you want. The employee relations, health & safety and ethics are very important for
any organization to develop the effective manpower.
I also learned employer should clear the all the objective and strategies to employee which
provide them very much assistance their work. Trust between each other is necessary when you
work in same organization and you have same objective. The problems become strength when
they were completely solved.
What are the manners and formal way of work which you have to follows when you working
with any organization or in corporate sector.

BIBLIOGRAPHY
Books:
1) Human resource management - K, aswathappa.
Date-05/08/17 page 356 to360

Journals & Articles:

 Human Resource Challenges in BPO Sector and Identifications of Best Practices.

o -Rupali Rajesh Sharma (Dr. K.N. Modi University)

 IRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319–
2828
Vol. 3, No. 2, April 2014
 Imperial Journal of Interdisciplinary Research (IJIR)
Vol.2, Issue-1 , 2016
ISSN : 2454-1362 , www.onlinejournal.in
 International Journal of Scientific and Research Publications, Volume 5, Issue 12, December 2015
407
ISSN 2250-3153

 Human Resource Management in Indian BPO.

 -Mohan Thite & Bob Russell.

 Job Satisfaction among the Employees of BPO Organizations in Kochi Region, Kerala.

 -Bindi KR & Dr. Shanthaamani.

Websites:
www.amgbusinesssolutionpvtltd.com
Date- 01/08/17
www.ijsrp.com
Date- 03/08/17

www.onlinejournal.in
Date- 16/08/17

http://www.thehindubusinessline.com/todays-paper/tp-eworld/hr-issues-in-indian-bpo-
industry/article1084161.ece
Date- 16/08/17
ANNEXURES
 QUESTIONNAIRE

Name of Employee: -----------------------------------------------------------------------

Designation: ----------------------------------------------------------------------

1. which of the following is the greatest HRM challenge faced by your BPO organization?
a) Performance management
b) Compensation
c) Employee attrition

2. Is employee attrition a problem from your company? If yes, then which area most affected?
a) Voice process
b) Back office process
c) Other

3. Strong reasons of employee attrition in your BPO organisation?

a) No career prospects

b) Monotony of work

c) Stressful job

d) Switching job for higher salary

e) Drive towards higher education

4. What kind of strategies do you adopt to control the attrition rate?

a) Better salary
b) Better working conditions
c) Better quality of work
d) Better incentives
e) Better promotion policies

5. How much percent of employee left their job because of monotony of work last year in your
organization?
a) 0% - 10%
b) 11% - 20%
c) 21% - 30%
d) 31% - 40%
e) 40% - 60%
6. Which are the reasons behind the performance management make difficult?
a) Lack of consistency
b) Lack of established goals
c) Lack of clear strategy
d) Lack of credibility

7. How much you most likely recommend for fair performance management of your BPO
organization?
a) Poor
b) Good
c) Better
d) Fair

8. Are you satisfied with the compensation given by your BPO organization?
a) Yes b) No