A Study on Retention Strategies and Attrition Analysis in the Business Process Outsourcing Industry and Its Impact to the Global Business Operations

Abstract

People have witnessed the instantaneous progress of Business Process Outsourcing (BPO) industry worldwide and in the Philippines. The very first Philippine call center was established in 1992 but it was only in 1995 when it started to tremendously expand, servicing not only to the United States but also in Europe, Canada, Australia and even Japan. India is considered the number one outsourcing country globally while the Philippines is the acknowledged leader in customer service worldwide. The main advantage is the Filipinos’ ability to converse in the English language which is comprehensible to major countries. The country has the people and the proficiency to cater to various back-office services. What attracts the investors more to the Philippines is the cost of doing business which is significantly low. Though the cost is minimal, the work outputs are greatly extensive. It is of utmost concern to know how this industry is able to retain its staff and the reasons why professionals prefer to work in BPO companies rather than be engaged in a local corporation. Though BPO industry is flourishing, it is likewise evident that there is high attrition rate; hence, there is a necessity to explore the motivations behind jumping from one BPO company to the other. The foremost emphasis of this study is to aid the BPO industry to capitalize on its retention strategies and effectively resolve attrition problem by analyzing the causes to uphold this industry and diminish the adverse impact of such in global business operations.