India's BPO sector under threat

India's Business Process Outsourcing (BPO) sector is facing stiff competition from its counterparts in Mexico, Philippines, Malaysia, China, Canada and Ireland, reveals a study, notes Deccan Herald.

In contrast to popular impression that India's BPO sector is the most competitive in the global arena, fast emerging BPO players in countries like China, Mexico and Philippines are posing a grave threat to the growth of country's BPO sector, the study conducted by Assocham has cautioned.

Meanwhile the AFP says the attrition rate in India's BPO sector jumped to 55% from a year earlier, dealing a potentially fatal blow to the flagship industry.

The study blamed the high turnover rate on bad working hours and a perceived lack of long-term career growth.

Between December 2010 and April 2011, the attrition rate in the BPO industry increased to 55% from 40% during the same period a year earlier, Assocham said.

Services offered by BPO in the domains of pharmaceuticals and financial services have registered an attrition of 60%; in retail and IT sectors 50%; and in automobiles, FMCG and infrastructure sectors 50% during period under the review, reports the Economic Times.