mba project on atrrition

Executive summary

An alarmingly high attrition level is hurting the India based business process outsourcing

(BPO) industry and is negatively impacting both its demand (buyers clients) and supply

(service provider) sides The topic of attrition and strategies to retain employees is

receiving daily media attention and the complexity of the issue can be confusing to

businesses that are interested in investigating off shoring work to India The Attrition and

retention is not only affecting the businesses who are interested in investing in India but

also specifically the industry

This study is an attempt made to study the attrition and retention strategies of a

Specific company HTMT Bangalore (a BPO company)The study is done to identify the

causes of attrition in HTMT this was done through the questionnaire provided to

employees covering the areas which are most likely to cause the employee turn over And

has reveled that the main cause of employee turn over is the salary and the improper

performance appraisal system prevailing in the company The retention strategies of the

company has to some extend helped in retaining the employees in terms of the policies

like career growth and scope for higher education But few of the policies have failed to

address the problem in the company

Finally in an effort to identify the causes and possible ways to handle it There are

few suggestions given to the company to quantify the attrition level and effective

implementation of their policies Few of the suggestion given are as follows

1 Providing and facilitating the right working environment is critical to

retaining employees given the nature of the work This includes

providing a safe and secure workplace to all employees and transparency

and objectivity in performance management compensation and

promotion policies to build and maintain confidence MBO

system( management by objective) could be adopted

2 Timely appraisal of the salary

3 Many employees are not enjoying their job so it is suggested that

company should go for job rotation for the employees so that they are

not bored of their routine work

Chapter-1-Introduction

11-Background of the study

The IT enabled services (BPO) industry is being looked upon as the next big employment

generator (Nasscom predicts 11 million job requirement by the year 2008) It is however

no easy task for an HR manager in this sector to bridge the ever increasing demand and

supply gap of professionals Unlike the software industry counterpart the BPO HR

manager is not only required to fulfill this responsibility but also find the right kind of

people who can keep pace with the unique work patterns in this industry Adding to this is

the issue of maintaining consistency in performance and keeping the motivation levels

high despite the monotonous work

The toughest concern for an HR manager is however the high attrition rate and

retaining the talent pool

In India the average attrition rate in the BPO sector is approximately 30-35 percent It is

true that this is far less than the prevalent attrition rate in the US market (around 70

percent) but the challenge continues to be greater considering the recent growth of the

industry in the country1 The US BPO sector is estimated to be somewhere around three

decades old Keeping low attrition levels is a major challenge as the demand outstrips the

supply of good agents by a big margin Further the salary growth plan for each employee

is not well defined All this only encourages poaching by other companies who can offer a

higher salary

The much hyped work for fun tag normally associated with the industry has in fact

backfired as many individuals (mostly fresh graduates) take it as a pas-time job Once

they join the sector and understand its requirements they are taken aback by the long

working hours and later monotony of the job starts setting in This is the reason for the

high attrition rate as many individuals are not able to take the pressures of work

The toughness of the job and timings is not adequately conveyed Besides the

induction and project training not much investment has been done to evolve a

continuous training program for the agents Motivational training is still to evolve in

this industry But in all this it is the HR manager who is expected to straighten things

out and help individuals adjust to the real world

1- Source National Association of Software and Service Companies (NASSCOM)

If a person leaves after the training it costs the company about Rs 60000 For a 300-seater

call centre facing the normal 30 percent attrition this translates into Rs 60 lakh per

annum2 Many experts are of believe that all these challenges can turn out to be a real

dampener in the growth of this industry This only raises the responsibility of finding the

right candidate and building a conducive work environment which will be beneficial

for the organization The need is for those individuals who can make a career out of this

All this has induced the companies to take necessary steps both internally and externally

Internally most HR managers are busy putting in efforts on the development of their

employees building innovative retention and motivational schemes (which was more

money oriented so far) and making the environment livelier Outside the focus is on

creating awareness through seminars and going to campuses for recruitment

2-source-wwwbpoindiaorg

12- INTRODUCTION TO THE TOPIC

India is considered to be one of the worldrsquos largest emerging economies ndash the World Bank

forecasts that India could become the worldrsquos 4th largest economy by 2020 It is a young

vigorous country ndash 60 per cent of its population is under 32 it has an emerging

increasingly affluent middle class of 300 million and its GDP increased 82 per cent in

2004 with seven per cent expected during 2005 As a result it is a prime target for

international investment3

Nowhere is this more vital than in IT and ITES industries Despite the fact that India

has the largest pool of scientific and technical personnel in the world NASSCOM predicts

a need for 11 million employees for the industry by 2008 Liberalization of the Indian

economy and extra competition from overseas firms is putting pressure on the HR function

of Indian domestic companies to prepare and develop employees With the additional

requirement for excellent English language skills this requirement is seen by many to be

more and more unattainable The prize for developing sufficient employees with the right

skills is significant The potential for growth is enormous - Indiarsquos share in global software

and services industry is a mere 3 percent Other estimates from McKinsey indicate that 45

million IT jobs will come from the US by 2008 and other sources estimate the number of

jobs in the sector at 15 million by 2015

Employee satisfaction is a challenge in the IT industry And the challenge simply doubles

when you talk about the ITeS industry commonly referred to as BPO The manpower base

of the BPO industry has increased multiple times over the last five years The segment is

currently a $52 bn industry with exports constituting more than 88 of the revenue

generated ITeS is a growing contributor to the Indian GDP and its growth is projected at

greater than 38 for FY 20062

3-source- DATAQUEST November 30 2006 dqindiacom

Table-1-showing potential shortage in the talent pool

The ITESBPO industry is expected to require an additional 93000 people in the next

year showing an increase in labor demand by 294 Put simply it has been a problem of

plenty for the industry which is trying to cope with high attrition high stress and job

satisfaction In the here and now however Indian HR needs to cope with the challenges

and opportunities provided by liberalization explosive growth and demand as well as the

increasing competition from other developing economies The retention of key and valued

employees and reducing the attrition rates heads the list of tasks Attrition It is the single-

largest challenge for BPOrsquos in light of the innumerable causative variablesmdashbehavioral

organizational and industrial

Indiarsquos competitive advantage as compared to other countries has made it a target

destination of multinationals for their back-end operations Several Fortune 500 companies

have opened centers here to benefit from the technologically skilled highly educated

motivated workforce

These companies have now graduated and expanded their service offerings from simple

processes to providing higher value knowledge-based processes India does a lot of

analytical work and has a vast pool of PhDs MBAs statisticians and economic graduates

India ranks high in areas such as capabilities quality of work linguistic capabilities and

work ethics and thus is ahead of competitors such as China Philippines Ireland

Australia Canada etc Indian companies also have unique capabilities and systems to set

measure and monitor quality targets Also India is able to offer a 24x7 services and

reduction in turnaround times by leveraging time zone differences Many state

governments in India are offering incentives and infrastructure to set up IT-enabled

services Industry experts feel that Indian BPOs will continue to show a cost savings of

40-50 percent for client organizations This can be attributed to declining telecom costs

increasing productivity gains and improved economies of scale in operations

To top all this Indian BPO is cashing in on level-2 services such as outsourcing product

development This leaves no room at all for doubt that India will lead the way as far as

this particular sector is concerned

13-A Brief Background of ITESBPO in India

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

Business process outsourcing otherwise know as BPO is the process of leveraging

technology vendors in various third world or developing nations for doing a job which was

once the responsibility of the enterprise Or simply put it is the process of shifting an

internal job process to an outsideexternal company which might have a completely

different geographical location Generally the processes being outsourcing as part of BPO

are backend jobs like callhelp centers medical transcription billing payroll processing

data entry and the like Most of these jobs are outsourcing by first world nations like USA

and UK to third world nations like India Philippines China Malaysia and some eastern

European countries

India is one of the hottest destinations for Business process outsourcing and has to

its name a host of fortune 500 and fortune 1000 companies that have set up their BPO

units here India BPO outsourcing is at present seeing a huge expansion with many

companies moving up the value chain to provide low end as well as high end BPO

services that include Knowledge services Most BPO vendors in India are now in a

position to handle an entire BPO process on their own

Indiarsquos offshore services industry is the largest in the world types of IT services

now located in India include back office remote support medical transcription customer

call centers database services and content development Business Process Outsourcing

(BPO) is the delegation of one or more IT-intensive business processes to an external

provider that in turn owns administers and manages the selected process based on defined

and measurable performance criteria Business Process Outsourcing (BPO) is one of the

fastest growing segments of the Information Technology Enabled Services (ITES)

industry

Business process outsourcing (BPO) is a broad term referring to outsourcing in all

fields A BPO differentiates itself by either putting in new technology or applying

existing technology in a new way to improve a process

Few of the motivation factors as to why BPO is gaining ground are

Factor Cost Advantage

Economy of Scale

Business Risk Mitigation

Superior Competency

Utilization Improvement

Generally outsourcing can be defined as - An organization entering into a contract with

another organization to operate and manage one or more of its business processes

14-The growth of BPO in India can be classified into four distinct phases

The First Wave Company Owned Units Pioneered BPO in India

1048698 Company owned units such as American Express General Electric (GE) Citibank and

AOL etc triggered the trend of outsourcing back office operations and call centre services

to India

1048698 Since then several banks insurance companies airlines and manufacturing

Companies have set up back office service centers in India

The Second Wave Venture Funded New Companies

1048698 Over the last few years a number of experienced professionals have set upstart-up

operations in India Generally such start-ups have been funded by venture capital funds

The Third Wave Leading IT Services Companies enter BPO

1048698 given the magnitude of such opportunity natural synergies with the software services

business and the ability to leverage their high-end physical infrastructure and management

band-width most large IT services companies have ventured into ITES

1048698 Consolidation of the market with the smaller players merging with each other larger

companies for economies of scale

The Fourth Wave Domain Industry Specialized BPOrsquos

1048698 Niche players in industry verticals or specific business processes have setup BPO

businesses Many of these players have had vast experience in the domestic market and are

now offering offshore BPO services

1048698 Generalized large BPO players are now focusing on ldquoverticalizingrdquo their competencies

and structures A majority of the key players in the BPO industry in India are captive units

of MNCs and international BPO companies desiring to take advantage of the cost arbitrage

offered by India For the Indian ventures of these MNCrsquos the risks are limited since they

are captive units and volumes are assured Many of the BPO ventures of MNCs are now

trying to offer their services to other companies Several ventures have been hived off into

independent companies to attract other customers and become profit centers as opposed to

the cost centers they used to be earlier Examples include eServe International World

Network Services (British Airways) and GECIS

OVERVIEW OF ITES IN INDIA

STRUCTURE

The industry has three broad categories of companies

1 Indian IT and ITeS companies ndash ranging from large companies (Tata Consultancy

Services Infosys Wipro HCL) to small niche companies

2 Global IT companies such as IBM Dell Microsoft HP etc all of whom have set

up development centres in India

3 Captive back office operations of large global corporations like JP Morgan

American Express GE Citigroup HSBC British Airways etc

4 Indian companies account for over 69 of the industry revenues International

companies account for the rest

5 About 45 of Fortune 500 corporations source software from India

Table-2-showing major IT amp ITes companies in India

POLICY (Of Indian Government)

1 100 FDI is permitted in this sector under the automatic route

2 SEZs EOUs and Software Technology Parks have been set up across India ndash

income tax exemptions are available for units in these designated areaszones

3 IT Act 2000 legalizes the acceptance of electronic records and digital

signatures providing a legal backbone to e-commerce

OUTLOOK

1 The Indian IT and ITeS industry is expected to grow to $148 billion by

2 Over 25 pa CAGR expected over the next seven years

3 India aims to achieve a 50 share in the global off-shored IT and BPO

services by 2008

Graph-1-showing the Expected growth in global BPO and KPO markets (2003-10)

POTENTIAL

1 Recognition of Indiarsquos strengths internationally

2 Increasing awareness among global companies about Indiarsquos capabilities in higher

value added activities and in the Global Delivery Model

3 Leading international companies have identified custom application development

and maintenance as priority areas due to high off-shoreable component

4 High growth of domestic IT amp ITeS market due to several regulatory and

technological factors

5 Opportunity to supply to the global market in addition to serving the growing

domestic demand

14-THE EVOLUTION OF BPO IN INDIA

Amex and GE pioneered the trend of outsourcing to India by setting up facilities in

Gurgaon near Delhi in the early 1990s Some of the other early birds were companies

such as British Airways who have also been operating their back office in India since the

mid-1990s The early reasons for considering off shoring to India were centered around

reducing costs and minimizing the effort spent on ldquonon-corerdquo activities With increasing

confidence of the companies in the capabilities of Indian operations higher value added

activities such as processing of HR accounting and other non-core functions is reaching

the Indian shores

(Source pricewaterhousecoopers Pvt ltd April 2005)

The following figure depicts the evolution and Phases of ITESBPO in India

Table-3-BPO ndash MARKET SEGMENTATION

Table-4-Top 15 BPOs in India

15-GROWTH OF ITES IN INDIA

In addition the BPO industry has significant headroom to grow with the offshorable

potential being 12 times current revenues The industry is likely to continue to witness an

increase in MampA activity which could lead to a significant consolidation in the BPO

industry in the process creating world scale players stated by Kiran Karnik NASSCOM

president5 In FY 2005-06 the Indian ITES-BPO segment grew by 37 per cent

contributing $63 billion to the total software and services exports of $236 billion6

Graph-2- showing ITITES Exports and staff strength growth

Table-5-Key highlights of the Indian ITES-BPO sector( source-nasscomcom)

ITES-BPO 2003-04 2004-05 2005-06

Exports ($ billion) 31 46 63

Employment (No of 253 316 415

people in 000s)

The ITES-BPO employee base has grown to 415000 in FY 06 from 316000 in

The domestic market for ITES-BPO also witnessed a significant increase in

demand with the estimated value of work outsourced (by domestic clients) growing

by over 55 to $860 million in FY 2005-06

5-source - wwwrediffnewscomJune 05 20066-source - nasscomcom

According to NASSCOM Steady growth is observed across the following key service

categories

Finance and Accounting

Customer Interaction

Human Resource Administration

These three segments accounted for an estimated 89 per cent of the industry revenues in

FY 2004-05 With steady demand observed across these key segments it is estimated that

the segment composition will not change significantly in the current fiscal (FY 2005-06)

Graph-3-REVENUE GENERATION OF ITES

Source National Association of Software and Service Companies (NASSCOM)

Graph-4- Segment wise revenue trend in IT-ITES

Let us look at some advantages of India BPO outsourcing

1 India has a relatively cheaper workforce as compared to any other nation

Indian workforce is well educated computer savvy and has good English

Speaking skills

2 India has a good communications and internet infrastructure

3 The Indian Government is very supportive of foreign investments and has devised

many investment friendly laws and taxes

4 Individual State Governments in India are constantly developing their IT and

networking infrastructure in order to attract more BPO investment

Outsourcing in India

The evolution of the BPO industry can be traced back to the following significant events

in the macroeconomic policy

The liberalization of the Telecom sector in 1994 which encouraged private

participation

The New Telecom Policy of 1999 introduced IP telephony and ended state

monopoly on international calling facilities

This brought about a drastic reduction in international calling rates and served as

vanguard for the emergence of the industry

The services which were outsourced initially include medical transcription data

processing billing and customer support

Some of the earliest players include American Express GE Capital and British

Airways

India is considered one of the hottest destinations for outsourcing given the numerous

advantages it has to offer Some of them include

Head start in the global IT revolution

Indiarsquos history and the expertise it has been able to develop

Moving up the value chain in terms of greater breadth of services being offered

Stable Macroeconomic conditions

Number of companies offering ITES services

A friendly tax structure

Fast Turn around times

Offering 247 services based on geographical location

Proactive policy environment

Graph-5- shows the attractiveness of India vis-agrave-vis other countries in the world

that are offering Outsourcing services

Source BPO and Call Center Outsourcing An Industry Overview(InterGlobe

Technologies)

Some interesting figures (Source wwwout2sourceindiacom)

On an average 40 companies continue to set up operations in India every month

Bangalore considered the Mecca of domestic and overseas IT firms in the last

few years accounts for 36 percent of Indias software exports that touched $125

billion

According to STPI (Software Technology Parks of India) in Mumbai one

company sets up operations every 3 days

India is already emerging as a leading ITES- BPO hub with one of every four

global giants outsourcing their software requirements to India

Graph-6-COMPARISION BETWEEN INDIA AND THE WORLD

Total value of IT-ITES sourced from India in 2004 estimated at USD 172bn 44 of the

worldwide total

Consistently ranked as the preferred sourcing destination (AT Kearney EIU etc)

16-Key players in The Indian Outsourcing Industry

The top players in Indiarsquos Outsourcing story include Wipro Spectramind IBM Daksh

Progeon Convergys Genpact 247 customer care and ICICI One source Claiming top

spot in the BPO sector is ConvergysConvergys attributes this to continuous investment in

technology and people Convergys has so far not expanded its operations in India through

acquisitions It has instead chosen to focus on upgrading work Employee churn remains

an important issue with the organization and the company is investing heavily in

technology and training

Wipro BPO is working hard to overcome the perception loss caused by the departure of

Raman Roy the poster boy of the Indian BPO industry TK Kurien the present CEO

wants to take the company to another level by integrating BPO services with Wiprorsquos IT

services

Progeon the BPO arm of Infosys has done well in spite of being a late entrant Progeon

has topped the poll on the global competitiveness yardstick and finished second behind

Convergys on quality of products or services But it has not done too well on

innovativeness and transparency 247 Customer focused largely on the insurance sector

and expanded its operations to the UK and Canada

Chapter-2-

Research Methodology

21-Statement of the problem

ITESBPO Companies are facing a major challenge of controlling the high attrition rate

and retaining the employees The purpose of the study is to find out the reasons as to why

the employees are leaving the company and it also aims to find out the ways by which

the company could retain the employees

22-Objective of the study

To identify the challenges being faced by HTMT in terms of Attrition and retention

by the company and the strategies framed by the company

To identify the issues related to compensational and non-compensational factors of

attrition and which of these needs greater attention in retention strategies

To identify the inherent nature of the job causing attrition in HTMT then what

should be done by the company to reduce attrition

23-Methodology of the Study

The information and data collected both through introduction of questionnaire and

informal interviews held with the employees of the company Additionally the research is

also done on some related publicly available documents and reports of the companies

Some articles were studied in depth and detail to get insights on the Attrition and retention

in ITESBPO sector

24- Sampling Design

Sampling design involves identifying the target population and selecting the sample if

census is not desired The sampling design involves determining who and how many

people to interview what and how many events to observe etc The type of sampling

design considered was convenient sampling

Sample description

The study of the attrition and retention is done on the basic level of employees ie the

customer support executives because it is found by the company that the attrition level is

high in this level The samples have being collected across all the process handled by the

company

Sample size In this project work the sample size take is 60 respondent employees

working as customer support executives across all the process

Tools used for data collection

Primary data collection is done through the questionnaire provided to the employees the

questionnaire covered the reaction towards the following areas

1 pay and benefits

2 working environment

3 Communication and planning

4 Career advancement

5 Training programmes

For analyzing the data the following method was used

No of respondents 100

Sample size

Secondary data source Secondary data is collected trough related websites information

provided by the company magazines and journals

25-Scope of the Study

The study finds out Practices and strategies pertaining to attrition and retention which is a

part of border area of Human resource management So a relatively small area of

knowledge is depicted here The study is company based ie considering a single

company (HTMT Global solutions) an ITESBPO company The study may not depict

the same trend or the causes in other similar industry based companies The study has not

done the comparison of the attrition percentage of HTMT with other companies so the

scope is their to do this study and give clear input to company with comparative study

26-Limitations of the study Time was the main constraint The sample size considered

was limited and the study was limited to the Customer relation officers only across all the

process and could not do the study for different level like managers and other levels some

of the respondents were reluctant to fill the questionnaire and many could not understand

the concepts The data analysis and interpretation is done straight way rather than

considering the relation with other questions

CHAPTER-3

Conceptual Background

31- Introduction to Attrition and Retention

Employment in most of the sectors is on the rise New age industries and new markets are

creating a gamut of employment options With the advancement in telecom and

infrastructure companies are inviting eligible personnel to join their team and build

business So why is there a problem of attrition Why do employees leave their

companies Where do they go Who is hiring them Are there any retention strategies that

may help salvage the situation

Look around you Opportunities are knocking doors more than once a day Despite this

fact we talk of unemployment problems high attrition rates and failing retention

strategies Employers go all out wooing employees to stay on HR is using all known

tricks to keep the employees happy Sounds like a familiar situation If you have been

driven at your wits end trying to keep employees happy then you need to reanalyze the

situation Lets go back to the facts stated earlier in this article

Attrition levels could be high due to several reasons Better facilities greater career

opportunities and personal comfort level are the commonly cited reasons Retention

strategies can work only when they are targeted to meet the core needs of employees Very

often employers try to satisfy superficial needs which employees dont perceive the value

additionWhat is the biggest challenge for the BPO industry in India today Well it is a no

brainier Attrition

The biggest challenge facing the BPO industry today is to manage the ambitious and

transient workforce Moreover since the industry is predominantly service-oriented the

importance of attracting and retaining talent has become very critical

percent) but the figure is way above the figure for China of around 15

Most interestingly in an increasing number of cases when an employee leaves a BPO job

he also leaves the industry This is a disturbing trend which needs to be addressed at the

earliest

The business process outsourcing industry in India is growing at a phenomenal pace

Exports were worth $ 52 billion in 2004-05 growing at 445 per cent and are projected to

have 41 per cent growth in 2005-06 to $ 73 billion (Source NASSCOM)

With 245100 people employed at the end of March 31 2004 against 171100 last year

the industry witnessed a hiring growth rate of about 40-42 percent On the hiring front the

industry absorbed about 74000 people in 2003 despite the attrition rate of 45-50 percent

being a matter of concern The size of the Indian BPO market is likely to be around $ 9-12

billion by 2006 and will employ around 400000 people7 (Source ICRA)Business process

outsourcing (BPO) has been basically facing two significant issues of late One is the

growing number of employees in its rolls (as discussed above) And second the

abnormally high attrition rate

The attrition rate which hovers around 40 now is unlikely to come down in near future

For a fresh college graduate a call centre job pays about 25 times as much as other job

openings And the boom shows all signs of continuing considering that the cost per

transaction in India is estimated to be the lowest at 29 cents compared to 52 cents in

China Nevertheless in ITES the proportion of persons employed in BPO industry are

over 50 as shown in the table below -

FY2001 FY2002 FY2003 FY2008E

BPO 23600 35000 68000 570000

Other IT-enabled 21400 35000 38000 530000

Total 45000 70000 106200 1100000

Table-6- Employment in the IT-enabled Services Sector in India 8

8-Source IDC NASSCOM

7-Source ICRA

It is interesting to note that the attrition rates in Indian BPO industry - and the costs

associated - are so high that they can override the benefits of lower wage costs euro

euroAccording to NASSCOM the outsourcing industry was expected to face a shortage of

262000 professionals by 2012

In fact GE Capital has moved a call centre from India back to Australia after staff

attrition rates of 70 wiped away any potential cost savings

32-Why Do Employees Leave

Graph-7-showing why employees leave the company

(Source Cover story 2006E-SAT2006November 30 2006 DATAQUEST Magazine)

A question which arises now is that why to employees leave and what is the reason that

the BPOs are not able to hold them back Well the most obvious reason that comes to

mind is higher pay Most employees in BPO are approached with two or three job offers

every week and sometimes it gets very tempting to resist The deterring factor for this

would be moving from one location to another with the family as housing and relocation

are two major concerns of the employees Though this problem is being taken care to a

certain extent by a salary rise of 10-15 annually on an average basis but still it prevails

Another factor which can be a big deterrent is the work timings The work timings in

BPO are very odd This affects the family life of the employee Moreover the male to

female ratio in BPO is quiet low The number of females in BPO can be as large as 35

This means that working hour problem is quiet acute in their case especially after they get

married as after marriage comes social and family pressure to adjust work timings and

take care of families Though the above two reasons are quiet prevalent another reason

which is becoming quiet frequent is career growth Only 2 out of 10 employees on an

average go on to be at the senior level This means that other employees look forward to

change their job at other places where they can get better opportunities to progress Also

another problem arises with the miss-match of expectations and qualifications of the

employees Along with that some employees see no career growth in this sector so they

move on to other companies in search of changing the sector

One more reason for employees leaving the firm is higher education This is a problem as

most of the employees in this sector are pretty young and aspiring They join the firm

because of lucrative salary But with time they try to move on to other sectors or top

management and one of the ways to do this is higher education

33 Reasons for Attrition (or causes of Attrition)

Causes of Attrition

The issue of attrition can be best seen in perspective of the age profile of this industrys

employees - about 87 of them are less than 30 years old And only about 9 of them are

between 30 and 40 years old compared to 22 in the IT industry9

This has been a deliberate hiring strategy in the industry The companies lure young just-

out-of-college graduates with a triplet of opportunities high growth great salaries and a

good work environment This may be a difficult group from which to build a stable low-

attrition HR environment They join with enthusiasm but are also quickly disillusioned

The specific reasons for attrition are varied in nature A list of issues some very prominent

and some even trivial are identified below -

1 No growth opportunity lack of promotion Only one in 10 people will ever make

consultant one in 100 will make it to line practice manager

2 Organizational matters

The knowledge employees always assess the management values work culture work

practices and credibility of the organization The Indian BPOs do have difficulties in

getting the businesses and retain it for a long time When there is no focus and in the

absence of business plans non-availability of the campaigns make people to quickly move

out of the organization

3 Work environment

In the Indian BPO industry rigid rules and strict monitoring are the norm Employees

often feel that they are being constantly spied upon Sometimes it even infringes on the

employees private space thereby forcing them to look for other opportunities

9-source-wwwindiabpo orgknowledgebase

4 Job matters A number of job related reasons contribute to the high attrition levels in

this industry These are given below -

(a) Stress Levels These jobs bring lots of pressure and the stress levels are high Hence

employees leaving the job due to too much pressure on performance or any work related

pressure are quite common

(b) Adjustment problems Often employees are moved from one process to another They

take time to get adjusted with the new campaigns and few employees find it difficult to

get adjusted and they leave immediately Many a time the employees move out if there

are strained relations with the superiors or with the subordinates or any slightest

discontent

(c) Nature of the job Monotony sets in very quickly and this is one of the main reasons

for attrition Besides the induction and project training not much investment has been

done to evolve a continuous training program for the employees

(d) Attitude of employees Youngsters look at call center jobs as temporary and they

quickly change the job once they get in to their own field

5 Salary and other benefits Moving from one job to another for higher salary better

positions and better benefits are among the most important reasons for attrition

6 Personal reasons The personal reasons are many and only few are visible to us The

foremost personal reasons are getting married or change of place The next important

personal reason is going for higher education Health is another aspect which contributes

to attrition Employees do get affected with health problems like sleep disturbances

indigestion headache and throat infection and lose interest in work

7 Poaching Poaching of trained and competent manpower from rival companies is very

high Most of the BPO organizations have employee referral schemes and this makes

people spread message and refer known candidates from their previous companies and

earn too in the bargain

It is not easy to find out as to who contributes and who has the control on the attrition of

employees A pin-pointing of the prominent causes is the first step towards addressing the

issue of attrition Two studies in this regard are worth mentioning

According to NASSCOM the cost of attrition in the Indian BPO industry is 15 times the

annual salary So it becomes all the more necessary for BPO industry to explore into the

reasons for this high attrition rate

The main reasons which have led to this problem are -

Improper Work Timings

Family Pressure

Health problems due to imbalance in work-life pattern

Peer Pressure

Lack of growth options within the company

Other Career options like pursuing further education joining other sectors

Salary (at lower levels)

Keeping low attrition levels is a major challenge as the demand outstrips the supply of

good agents by a big margin Further the salary growth plan for each employee is not

well-defined All this only encourages poaching by other companies who can offer a

higher salary The business process outsourcing (BPO) industry in the country which is

expected to employ around one million people by 2008 is facing the challenge of finding

quality human resources given the current attrition rate of around 50 percent

Analysts say attrition rates vary by 20-40 in some firms while the top ones averages

at least 15 Nasscom in a report said the outsourcing industry was expected to face a

shortage of 262000 professionals by 2012

Attrition rates in IT-enabled business process outsourcing sector have come down from

the 30-33 per cent being witnessed of late to about 25 per cent now according to statistics

compiled by the National Human Resource Development Network

Graph-8-showing key Attrition Triggers

(Sourcewwwemployee-retention com)

If you compare attrition rates for a Voice and Non-voice process then attrition rates are

significantly lower in a non-voice process As the industry moves up the value chain and

becomes a full-scale BPO player attrition rates will further decrease

For BPO service providers moving up the value chain is critical given the attrition rates

in the industry which are on an average higher in low value-added segments (in call

centres) as compared to higher value-added segments like engineering

Tackling Attrition Head-On

Industry experts feel as the industry was still in its nascent strategy there was lot of

strategies available to reverse this trend and make it an attractive employer

NASSCOM ITES-BPO forum has identified HR as one of the key challenges of the ITES-

BPO industry and has formed a special task force to address short-term challenges such as

Attrition and also long-term challenges such as ensuring availability of a skilled talent

To arrest this trend companies can look into various options like good rewards bonding

programme flexible working hours and stronger career path With attrition rates ranging

between 30-60 percent in the BPO industry HR specialists feel that a scientific and

analytical approach should be implemented

The tremendous turnover rate is undeniably one of the main problems faced by the BPO

industry globally HR specialists at the Nasscom 2004 summit brainstormed on various

approaches to handle this bugbear- either declare war on attrition and tackle it head on or

adopt a more scientific analytical approach Pay cheques alone are not enough to retain

employees Management also needs to consider other aspects like secure career benefits

perks and communication The attrition battle could be won by focusing on retention

making work a fun place having education and ongoing learning for the workforce and

treating applicants and employees in the same way as one treats customers

Companies need to go in for a diverse workforce which does not only mean race gender

diversity but also include age experience and perspectives Diversity in turn results in

innovation and success The 8020 rule also applies to recruitment she quipped since

studies showed that 80 percent of the companys profit comes from the efforts of 20

percent of the employees So BPOs need to focus on roles which have the most important

impact

Table-7-showing Causes for Employee Turnover

Independent Variables Dependent Variables

Supervisor relations Overall satisfaction

Pay amp benefits Likelihood to recommend

Work environment Likelihood to stay

Corporate communications Employee loyalty

Performance Management System Motivation

Communication System Stress

Centralization of Power And Authority Opportunity

Job Description Recognition

Politicization Interest in the Job

Performance Of Organization Biased Behaviour

Organisation Policies and Strategies Learning Organisation

Working Hours Loyalty

1 Supervisor relations

The quality of the supervision an employee receives is critical to employee

retention People leave managers and supervisors more often than they leave

companies or jobs It is not enough that the supervisor is well-liked or a nice person

starting with clear expectations of the employee the supervisor has a critical role to

play in retention Anything the supervisor does to make an employee feel unvalued

will contribute to turnover Frequent employee complaints center on these areas

--Lack of clarity about expectations

--Lack of clarity about earning potential

--Lack of feedback about performance

--Failure to hold scheduled meetings and

--Failure to provide a framework within which the employee perceives he can

succeed

2 Pay amp benefits

Over half made changes based on exit interview information and these included

reviewing salary structures forming employee retention committees establishing

alternative work schedules and introducing bonus plans

Traditional benefits apparently work the best The respondents ranked health care

benefits as the most effective retention tool followed by competitive salaries

competitive salary increases and competitive vacation and holiday benefits

Interestingly some of the newer and trendier benefits did not fare as well

Based on the survey findings the best action for employers trying to boost their

retention rates is to analyze salary and benefits packages to determine if they

measure up to the competition Policies and Benefits Can Reduce Turnover

3 Corporate communications

The ability of the employee to speak his or her mind freely within the

organization is another key factor in employee retention Does your

organization solicit ideas and provide an environment in which people are

comfortable providing feedback If so employees offer ideas feel free to criticize

and commit to continuous improvement If not they bite their tongues or find

themselves constantly in trouble - until they leave

4 Performance Management System

There may be very few performance appraisal exercises that are devoid of criticism

of bias any subjectivity however most of the efforts to dispel the bias and

subjectivity are restricted to changing appraisal formats amp systems that include

switching over to techniques like 360 Degree Appraisal amp Team Assessment using

MBO criteria or modern approach Balanced Scorecard

5 Organization Policies and Strategies

No matter the circumstances never never ever threaten an employees job or

income Even if you know layoffs loom if you fail to meet production or sales

goals it is a mistake to foreshadow this information with employees It makes

them nervous no matter how you phrase the information no matter how you

explain the information even if youre absolutely correct your best staff members

will update their resumes Im not advocating keeping solid information away from

people however think before you say anything that makes people feel they need to

search for another job

6 Likelihood to stay

Your staff members must feel rewarded recognized and appreciated

Frequently saying thank you goes a long way Monetary rewards bonuses and gifts

make the thank you even more appreciated Understandable raises tied to

accomplishments and achievement help retain staff

7 Opportunity

Talent and skill utilization is another environmental factor your key

employees seek in your workplace A motivated employee wants to contribute to

work areas outside of his specific job description How many people could

contribute far more than they currently do You just need to know their skills

talent and experience and take the time to tap into it As an example in a small

company a manager pursued a new marketing plan and logo with the help of

external consultants An internal sales rep with seven years of ad agency and logo

development experience repeatedly offered to help His offer was ignored and he

cited this as one reason why he quit his job In fact the recognition that the

company didnt want to take advantage of his knowledge and capabilities helped

precipitate his job search

7 Recognition

A common place complaint or lament we hear during an exit interview is that the

employee never felt senior managers knew he existed By senior managers refer

to the president of a small company or a department or division head in a larger

company Take time to meet with new employees to learn about their talents

abilities and skills Meet with each employee periodically Youll have more useful

information and keep your fingers on the pulse of your organization Its a critical

tool to help employees feel welcomed acknowledged and loyal

8 Learning Organization

Your best employees those employees you want to retain seek frequent

opportunities to learn and grow in their careers knowledge and skill Without

the opportunity to try new opportunities sit on challenging committees attend

seminars and read and discuss books they feel they will stagnate A career-

oriented valued employee must experience growth opportunities within your

organization The easiest to solve and the ones most affecting employee retention

are tools time and training The employee must have the tools time and training

necessary to do their job well ndash or they will move to an employer who provides

Causes of attrition can also be categorized in to Internal and external

Internal Factors

Service providers face an array of career-related work environment and cultural concerns

that are attributable to increased attrition levels Monetary considerations The

expectations of employees in this industry have grown exponentially due to the strong

demand in the marketplace A number of people who leave do so because they have been

offered a higher salary In the current BPO climate it is easy for employees to find

positions that leverage their experience and pay better

Slow career growth for internal talent Employees with prior relevant experience are a

precious commodity in todayrsquos fast growing market Therefore it is not unusual for fast-

growing companies to fill new jobs with external applicants who have prior relevant

experience with other companies bringing them in at one level higher than their current

level or providing them a new role with greater responsibilities This contributes to the

perception by ldquopassed overrdquo internal talent that career growth is slow in the current

Organization which results in further attrition Monotony In general BPO work

(especially work that has been offshore) has been repetitive mechanical

Service-level-driven and involves high transaction volumes Younger recruits find it

monotonous once they have mastered the process

Shift timings The majority of the work offshore to India has typically been from the

United States (though share from Europe is growing) necessitating Night-shift work due to

time zone differentials The proportion of employees who can work during the Indian

work-day is low Continuous night shifts affect the health of some while others just

cannot adjust to them As a result of cultural and social factors some women employees

leave because they are not able to convince their families of the need to work nights

Working environment Attrition due to the work environment is typically due to a lack of

trust in the fairness of the system issues around safety and care of employees

effectiveness of the channels to address employee grievances accessibility of the senior

management team and other related environmental Issues

Limited training and development opportunities Though not one of the top reasons for

attrition increases the lack of ample opportunities to learn new skills or undergo training

or further education is occasionally cited as a reason for leaving Deficiencies in the

recruitment process To ensure that they rapidly meet high demand levels service

providers are not always able to hire resources with the right skills and experience when

and where the are needed

Mismatched resources Resources who are put on assignments that are not in line with

their skills or career aspirations may leave if they are not rotated to a favorable assignment

soon enough

External factors

There are several ldquoenvironmental factorsrdquo outside the immediate control of service

providers and clients that also must be considered and strategically addressed to reverse

attrition

Concentration of demand for talent Most service providers are located in five to six

large Indian cities (known as ldquoTier 1rdquo cities) which has led to excessive concentration of

demand and competition for resources in these geographies

Limited talent pool supply While there is an abundant supply of educated people the

supply of an employable pool is less so Basic minimum skills required by the BPO sector

to service developed markets include the ability to speak and write English fluently and to

understand the processes and domain of the client The quality of education in smaller

towns and cities is not of the required standard rendering even some educated people

unemployable

Shortage of management pool The supply of supervisory and management talent is

relatively limited because it requires prior experience Given the pace at which jobs are

created in this market it is difficult to find management staff with the optimal experience

levels

Career outlook The workforce entering the BPO sector is very young and sometimes

immature (entry-level graduates with a three-year college degree are only 21 or 22 years

old) Many of this younger population are not sure what they want to achieve in their

careers and represent flight risks

34 Attrition - The Financial Aspect

Apart from the inherent need for companies to retain experienced and talented employees

who form the lifeline of the company there is a cost aspect to attrition too A company

invests a great deal of its resources in its employees in the form of salaries benefits

bonuses training and other personnel costs

When an employee leaves a job there is a cost incurred for the person who temporarily

replaces him as also the cost due to loss in productivity Administrative expenses of

conducting an exit interview the cost of lost knowledge and the cost of training invested

in the person leaving the company are substantial

It is interesting to note that the attrition rates in India - and the costs associated - are so

high that they can override the benefits of lower wage costs A Nasscom-Hewitt

Associates Survey says that the cost of attrition in the industry is 15 times the annual

salary

On an average companies today lose 25 of their annual revenue as a result of attrition

Thus even an 8-10 decrease in the attrition rate can have a major spin-off effect on the

bottom line of a company9

9- Nasscom-Hewitt associates survey

The Cost of Attrition

What does attrition cost a company This is a question which has been of immense interest

to all the multinationals It has been researched and found that the cost of attrition is 15

times the annual salary BPO employees changing jobs cost the industry an estimated Rs

350 crore in recruitment and training costs in the fiscal year 2004 The rate of attrition in

some companies can be as high as 60 per annum Companies also run the risk of

inefficiency impacting client agreements and business development efforts

Various Costs Associated With Employee Attrition

There are various costs associated with employee attrition For example if a new hire

leaves after the training it costs the company about Rs 60000 For a 300-seater call

centre facing the normal 30 percent attrition this translates into Rs 60 lakh per annum

Many experts are of the belief that all these challenges can turn out to be a real dampener

in the growth of this industry

BPO employees changing jobs costs the industry millions of dollars in recruitment and

training Moreover companies run the risk of inefficiency impacting client agreements

and business development efforts

These costs can be classified as the following -

Recruitment Costs

These include -

The cost of advertisements agency costs employee referral costs Internet posting

The cost of the internal recruiters time to understand the position requirements

develop and implement a sourcing strategy review candidates backgrounds

prepare for interviews conduct interviews prepare candidate assessments conduct

reference checks make the employment offer and notify unsuccessful candidates

Training Costs

These include -

The cost of orientation in terms of the new persons salary and the cost of the

person who conducts the orientation

The cost of various training materials needed including company or product

manuals computer or other technology equipment used in the delivery of training

Lost Productivity Costs

As the new employee is learning the new job the company policies and practices etc

they are not fully productive It includes the costs associated with the low productivity of

the new employee

Lost Sales Costs

These costs are the lost revenue which occurred as a result of project loss due to key

employee attrition Given the alarming rate of attrition and its consequences service

providers are taking individual and collective steps to counter the trend There is a need to

take a comprehensive look at what may be done in the short- and long-term

Attrition may be addressed by service providers in two principal ways

1) Actions to control attrition

2) Actions to manage impact

Further while the primary responsibility lies with the service provider clients may also

help stabilize the situation by taking the initiative to enhance the environment at offshore

centers

35-Attrition management

(sourcewwwtpinetJan 2007 ldquoINDIA-An Attractive Destination Marred by alarming

Attritionrdquo )

Short-term actions

Pay for complexity The current standard practice is to pay associates based on vintage

tenure (length of service) organization level andor shift timings Most work is treated at

par for determining compensation meaning that all job profiles of the same level mdash

whether Human Resources Finance amp Accounting or any other process work mdash are

compensated at same level

The only compensation differentiation most companies make is between voice and non-

voice work (voice work which is more stressful pays better because attrition in this area

is relatively higher) To stem the tide of attrition an important measure for overcoming

the issues of compensation and work related stress is to institute the concept of ldquopay for

complexityrdquo which recognizes that functions and processes vary in complexity and hence

should be compensated differently

Such a system would place different processesfunctions in ldquobucketsrdquo based on

complexity with extra allowances offered for more complex work This helps in two ways

mdash by ensuring that personnel facing more stress get more compensation and by allowing

them to decide whether they would like to stay in that role or transfer to a less challenging

environment Though a seemingly viable concept the challenge lies in implementing this

ldquohorses for coursesrdquo approach in a fair and objective manner

Competitive compensation The overall compensation and benefits package should be

competitive at all levels for the service provider to maintain its declared market

positioning Technique includes setting a compensation positioning for the company and

clear and rigorous communication of the same to employees to keep them informed Using

deferred income or bonuses that are payable at the end of the year aids in employee

retention

Career opportunities Service providers should establish career paths and maintain

standard guidelines for promotions and growth Posting job openings internally provides

employees opportunities for job rotation instead of looking outside the company for new

and different roles

Training and development Employers should provide sufficient and meaningful training

and development opportunities and link attendance at such programs to the performance

management system Further it is helpful to provide advanced education opportunities

(subsidized or free) to those aspiring to study further without having to lose their gainful

employment

Working environment Providing and facilitating the right working environment is

critical to retaining employees given the nature of the work This includes providing a safe

and secure workplace to all employees and transparency and objectivity in performance

management compensation and promotion policies to build and maintain confidence

Communication Service providers have learned the importance of implementing a strong

and effective communication program with employees Nothing can substitute for frequent

communications from top management on the state of the business future business plans

promotion policies fun in workplace programs and such Experience has proven that

thereis no risk of over communicating Occasional faceto- face meetings combined with

other methods of employee contact work well to keep employees connected to the

organization and go a long way in building loyalty to the business

Employee satisfaction Employers should conduct employee feedback surveys

periodically and should take the feedback from these surveys seriously They should act

on the feedback and demonstrate commitment by tracking initiatives for improvement

through to completion

Internal process (rdquohire-to-retirerdquo) With improvements to recruitment and deployment

not only will the right skills be hired for the right job but resources will also be deployed

and trained appropriately

36 -Employee retention

Employee retention is one of the primary measures of the health of your organization If

you are losing critical staff members you can safely bet that other people in their

departments are looking as well Exit interviews with departing employees provide

valuable information you can use to retain remaining staff Heed their results Yoursquoll never

have a more significant source of data about the health of your organization

some top ways to retain a great employee

The quality of the supervision an employee receives is critical to employee retention

People leave managers and supervisors more often than they leave companies or jobs It is

not enough that the supervisor is well-liked or a nice person starting with clear

expectations of the employee the supervisor has a critical role to play in retention

Anything the supervisor does to make an employee feel unvalued will contribute to

turnover Frequent employee complaints center on these areas

--lack of clarity about expectations

--lack of clarity about earning potential

--lack of feedback about performance

--failure to hold scheduled meetings and

--failure to provide a framework within which the employee perceives he can succeed

The ability of the employee to speak his or her mind freely within the organization is

another key factor in employee retention Does your organization solicit ideas and provide

an environment in which people are comfortable providing feedback If so employees offer

ideas feel free to criticize and commit to continuous improvement If not they bite their

tongues or find themselves constantly in trouble - until they leave

Talent and skill utilization is another environmental factor your key employees seek in

your workplace A motivated employee wants to contribute to work areas outside of his

specific job description How many people could contribute far more than they currently do

You just need to know their skills talent and experience and take the time to tap into it As an

example in a small company a manager pursued a new marketing plan and logo with the help

of external consultants An internal sales rep with seven years of ad agency and logo

development experience repeatedly offered to help His offer was ignored and he cited this as

one reason why he quit his job In fact the recognition that the company didnt want to take

advantage of his knowledge and capabilities helped precipitate his job search

In addition to the three retention tips offered by HR professionals in the SHRM-

CareerJournalcom survey competitive salary competitive vacation and holidays and tuition

reimbursement these are your key retention strategies (If you think they read like the Golden

Rule youre right they do) And theyre also common-sense basic and incredibly hard to find

in organizations today

Select the right people in the first place through behavior-based testing and

competency screening The right person in the right seat on the right bus is

the starting point

Offer an attractive competitive benefits package with components such as life

insurance disability insurance and flexible hours

Provide opportunities for people to share their knowledge via training sessions

presentations mentoring others and team assignments

Demonstrate respect for employees at all times Listen to them deeply use their

ideas never ridicule or shame them

Offer performance feedback and praise good efforts and results

Enable employees to balance work and life Allow flexible starting times core

business hours and flexible ending times

Involve employees in decisions that affect their jobs and the overall direction

of the company whenever possible

Recognize excellent performance and especially link pay to performance

Recognize and celebrate success Mark their passage as important goals are

achieved

Staff adequately so overtime is minimized for those who dont want it and

people dont wear themselves out

Nurture and celebrate traditions Have a costume party every Halloween Run a

food collection drive every November Pick a monthly charity to help Have an

annual company dinner at a fancy hotel

Provide opportunities within the company for cross-training and career

progression People like to know that they have room for career movement

Provide the opportunity for career and personal growth through training and

education challenging assignments and more Communicate goals roles and

responsibilities so people know what is expected and feel like part of the in-

Chapter-4

PROFILE OF THE COMPANY

41-History of the Company

The saga of the Hinduja Group started in Sind the cradle of the Indus Valley Civilization

where more than 5000 years ago the human race learnt its first lessons in organized

business and banking Parmanand Deepchand Hinduja a young entrepreneur from the

fabled town of Shikarpur realized early in life that business was all about spotting

opportunities and seizing them wherever they surfaced

He traveled to Mumbai in 1914 and quickly learnt the ropes of business The business

journey which began in Sind entered the international arena with an office in Iran (the

first outside India) in 1919 Merchant Banking and Trade were the twin pillars of the

business and the Group remained headquartered in Iran until 1979 when it moved to

Europe

The Group has expanded and diversified its businesses with significant social and

charitable contributions under the present leadership of Chairman Srichand ably

supported by his brothers Gopichand Prakash and Ashok

Today the Hinduja Group has become one of the largest diversified groups in the world

spanning all the continents The Group employs over 30000 people and has offices in

many key cities of the world and all the major cities in India

The Hinduja Family has always adapted to free-market reforms moving quickly in new

markets that have opened and capitalising on new economy opportunities As a result the

Hinduja Group has now strategically positioned itself to contribute to old economy sectors

such as Banking amp Finance Transport Energy (Oil amp Power) as well as the new economy

of Technology Media and Telecom

The Business Philosophy

My Dharma (duty) is to work so that I can give

Parmanand Deepchand Hinduja (1901-1971) Founder Hinduja Group

Firm believers in traditional family values the Hindujas have all along striven to inculcate

the family concept in their business enterprises

Every member of the Group is encouraged to practice the Vedic principles of work

Service with devotion and Willingness to see fulfillment of ones self-interest in the

active promotion of the interest of the collective

Mutual trust respect cohesion and co-operation are emphasized as key organizational

guidelines At the same time sound modern management practices are given primacy

within individual companies of the Group and also at the corporate level

Professionals are allocated independent charge of diversified activities There is a high

premium on healthy internal competition incentives to executives and employees for

outperforming one another and appreciation of good performance

The Group has throughout its history demonstrated a strong commitment to creating

better understanding between the peoples and the governments of the world Building

amity and co-operation between their host country and their mother country India has

been an article of faith

The Hinduja family in conducting its business activities for over 100 years across Asia

Europe and America has done so by following the example and inspiration of the Hinduja

Groups founder Shri Parmanand Deepchand Hinduja (1901-1971) and his strong

belief that it was his dharma (duty) to work so that he can give

It was from Parmanands experiences instinct and belief in the need to work hard so as to

progress in life both professionally in business and personally as a man with a growing

family that he developed his five guiding principles These guiding principles are pivotal

to how the Group and family conduct themselves in their business and personal lives

It is the universality of these principles and how they can be applied in commerce

business management philanthropic activities and ones own personal life that have

enabled them to last the test of time

In carrying out the duty to work diligently carries the responsibility that one should also

give something back to others and society In turn to work hard and succeed will earn one

respect in business

That respect also requires one to be able to meet all ones commitments and only enter into

agreements that one knows one can honour And this should apply whatever the economic

conditions of growth and recession

Hence the idea of my word is my bond This enables one to build trust and confidence

with all ones stakeholders including employees customers and suppliers where long

term relationships could be developed for the benefit of everyone

Following on from these two principles the founder sought to seek new markets

and products enabling the Group to acquire geographical product and industrial

diversification This led to the third abiding principle Act Local Think Global

Simplistic in its ideal but difficult in its application the potential market is the whole

There is always a customer for your goods and services the challenge is to find that

market get your product to that market offer it at a competitive price and ultimately have

a satisfied and loyal customer One has to understand the needs of each local market as

each market has different traditions and customs Understanding them recognizing them

and remaining sensitive to and respecting them will lead to business success

Meeting such challenges can be risky but sharing this risk and in turn reward can bring

real benefit

Partnership for Growth builds on the principles of Act Local Think Global and includes

the idea of communication and working with others - both within and with other

organisations Only by doing these can organizations be flexible look to the long term and

innovate It is by working with others including your suppliers and customers can one cut

costs in the value chain and add to economic growth

Working with others also recognizes your own limitations and expertise Seeking the right

partnerships can bring the necessary expertise and innovation and in sharing you can

exchange ideas and concepts with partners on the clear understanding that with shared risk

there is shared reward

The final principle

Advance Fearlessly has as its base the other four principles To grow your business

takes time and effort it involves risks and has setbacks as well as advances However

with the founder and the Group risks are fewer through partnerships the trust and

confidence of customers is higher as commitments are honoured while respect has been

earned as the Hinduja Group has learnt to understand the different markets and cultures in

which it operated This allows the group to advance fearlessly

Vision statement

HTMTs vision is to become a Scale Player and leader in its core business of Information

Technology by leveraging the strength of its customer base breath and depth of its service

lines and management bandwidth

Mission statement

HTMT will also offer high quality cost effective end-to-end solutions or breadth of

experience across multiple technology platforms and verticals to enhance the business of

its customers world-wide because of the remarkable advance it has achieved in modularity

through subsidiaries in Media and Telecommunication which are designed to function

independently and yet to work together as a whole coalescing around Technology

The five principles as under distilled from the lifetime experience of the Founder of

Hinduja Group late Shri Parmanand D Hinduja serve as the cultural cornerstones of the

business of the Group leading to a synergistic and creative partnership of professional

management and entrepreneurship among the Group Companies

Work to Give

Word is Bond

Act Local Think Global

Partnership for Growth

Advance Fearlessly

Value System

Based on the above principles HTMT has evolved the following set of Seven Values that

illumine inspire and energise the corporate life of the Company and its subsidiaries like

melding hues of the light spectrum

Customer Delight - Through excellence in service to customers and co-creation of value

in partnership with them

Total Quality - Continuous quality improvement through innovation process

improvement and team work

Dependability - Expectations being met consistently through professionalism

People Empowerment - Empowerment of employees to enhance self motivation and

customer service

Corporate Governance - Maintenance of the Highest standards of corporate governance

and business ethics

Global Mindset - Local Responsiveness and global perspective

Sustained Growth - Consistent growth and profitability through a sustainable business

model for rewarding all the stakeholders viz shareholders employees customers and

society as a whole

42-Corporate Profile

Hinduja TMT (HTMT) an established name in the IT sector has coalesced its

Technology Media and Telecom assets to achieve synergy of operations and become

Indias First Convergence Corporation

HTMT has emerged as an IT company that delivers time and cost effective solutions to its

vast and diverse clientele all over the world adding value and simplifying life for its

customers

To meet the challenges on the horizon as digital odyssey gathers pace HTMT has on

board skilled professionals from the diverse fields of IT Telecom Banking Finance

Transport Manufacturing Health Care Insurance and Education backed by world-class

infrastructure that is continuously improved to ensure global standards of environment

resources and deliverables

Why clients opt for HTMT

Some reasons

1The first truly convergent company in India

2Ability to initiate BPO amp Call center project in under 60 working days

3 Availability of a rare mix of talent from varied fields of Insurance Telecom IT and

Customer services

4 Offers the highest cost advantage due to its location in India

5 Best Human Resources across various fields available

6 Experienced Technology Partners for BPO amp Call Center

7 Excellent HR Policies

8 Compliance with global quality standards

9 Offer the best technology platforms - with support from the IT Services Division for

Software and Technology Services

43- Product and Services

HTMT has a wide range of business in the following core areas

1Hinduja group

The Hinduja Group provides a wide range of products amp services in over 50 countries

The group activities are divided into three core areas

1 International trading

2 Investment banking

3 Global investments

2 Technology

HTMTs core activity is in Technology Services The IT Services division offers

Software Technology Solutions with a focus on e-commerce and web-based

applications ERP solutions Systems Integration and IT Enabled Services

4 Media

With the convergence of technology and communications HTMT has converged its

media assets under one company IN Network Entertainment Ltd offering quality

infotainment programming amp products to its consumers

5 Telecom

Telecom services - wired and wireless - are revolutionizing communications globally

HTMT offers its subscribers a unique mix of both ensuring quality communications at

an efficient cost and high speed

Through its Global Investments the Hiunduja Group is a major player in Automotive

Manufacturing Financial Services Banking Trading Oil Media amp Communications

Information Technology Chemicals amp Infrastructure and Projects Development Quick to

grasp new opportunities the group is expanding its investments and advisory services in

both the old and new economy sectors

Back Office Processing

HTMT has a well developed Healthcare Insurance practice with over three years of

experience HTMT provides Claims Adjudication Services to two leading Fortune 500

Healthcare Insurance companies in US Today HTMT is a leader in the Healthcare

Insurance Claims Adjudicating Domain with more than three years experience

Types of Claims processed by HTMT are

HMO - Health Maintenance Organization

COB - Coordination of benefits

OPR - Over payment recovery

CRP - Claim Resolution Processing

Contact Center Services

HTMT has been one of the pioneers in the contact center space in India The first contact

center of HTMT was established in the year 1996 for a group company in Mumbai

HTMT is currently working with customers in the Telecoms Consumer Durables

Financial Services and FMCG area

44-Number of Branches

HTMT is a publicly listed on both the Bombay Stock Exchange (BSE) and the National

Stock Exchange (NSE) in India

Having catered to global clientele for over 10 years now HTMTs customers include

Fortune 200 companies across a wide range of verticals like telecom healthcare insurance

pharmaceutical products consumer electronics financial services energy and utilities

among others

HTMT employs over 7500 worldwide across centers in Bangalore Mumbai (India)

Manila (Philippines) Mauritius New Jersey (USA) and Toronto (Canada) HTMT was

ranked among the Top 5 employers for two consecutive years in the industry according to

an employee satisfaction survey conducted by Dataquest and IDC

Company Achievements

45-Financial Highlights

46-HTMT HR-policiesstrategies for Controlling the attrition rate and retaining the

employees

The attrition is calculated in the company as follows

Monthly Attrition

No of separations

------------------------------------------------------------------------------- 100

Headcount (Beginning of month + end of month) 2

The average turnover rate is 24 per annum for all our non-voice processes

The main reasons for staff turnover are as listed below

1) Better Prospects - This comprises of 425 of the total attrition This includes

bull Better salary package

bull Brand pull

bull Change in work environment

bull Shift in industry

2) Personal and Health Reasons - This comprises 15 of the total attrition

This includes

bull Employee being unwell thus forcing himher to leave the system

bull A family member unwell

bull Hometown Relocation

bull Employee joining family business

bull Inability to cope with night shifts

bull Marriage etc

3) Higher Education - This comprises of 10 of the total attrition

Many associates who are in the system are Graduates generally in the age group of 21-24

years At some point associates generate the interest to continue with their studies and this

prompts them to quit from their current jobs

4) Wedding - This comprises 5 of the total attrition This includes women who get

married and not willing to work in night shifts

5) Relocation - This comprises 5 of the total attrition

Measures to control attrition

The company employs various measures to ensure motivation and retention of talent We

take pride in some of the practices and HR policies that have helped motivate and retain

talent within the organization The management at HTMT works hard in retaining our

employees and we will ensure similar commitment towards the Lydian program

HTMT is an employee centric organization and understand that the BPO sector is largely

people centric Some of our initiatives towards managing staff turnover are as mentioned

Efforts towards employee satisfaction

bull Cross Training

bull Employee help-line to ensure timely redressal of grievances

bull One on one sessionrsquos with HR Floor Manager

bull Open door policy

bull Employee climate surveys

bull Individual Empowerment to take decisions

bull Self Managed teams to work on Strategic Company wide Initiatives

bull ldquoLoyalty bonusrdquo - An associate gets an attractive loyalty bonus at the end of

every completed year This loyalty bonus gets added to his salary and is given besides the

regular appraisal hike

Shift rotation and job enrichment

bull HTMT employs shift rotation every month so that employees get the opportunity to

attend to personal problems balancing both office and home needs

bull Adequate opportunities are provided for employees willing to take initiatives and try out

new systems amp processes

Other measures we have implemented also include

Conducting annual staff get-togethers

Sports competitions

Recognition for outstanding employees

Access to a well-stocked Library

Sponsorship of professional courses to deserving employees

Conduct personality development programs

Enhanced incentive schemes

Salaries pegged against the top quartile in our Industry

Access to Indoor Games like ndash Table Tennis Caroms etc

Access to an In House Doctor and a Psychiatrist

HTMT has undertaken the following key Initiatives in the last 2-3 years to address

attrition

ldquoGurglesrdquo ndash A Dip Stick Survey of new employees who have completed 3 months

in the system to tract amp attest any issues at an early stage

Internal Job Posting ndash Ensuring growth opportunities from within existing

resources

Salary Correction ndash Based on survey done to match industry standards

Internal amp External Training programs conducted to enhance soft skills decision

making skills etc to make an able leader and manager

Employee Engagement Activities to mitigate fatigue and boredom

Monthly and Yearly awards to recognize performers across levels and functions

Trainee award trainer award Mentor award Workaholic award Best GL award

Best Performer award Hall of Fame award Innovation award

Stress Busting Activities

Hawk sessions before a candidate comes onboard ndash Helps a candidate experience

the touch look amp feel of the job before committing oneself

Internal Feedback taken in the first 30-60-90 days to ensure that there is a

systematic method of tracking grievances and solving the same

Harassment rules framed and communicated to all employees ensuring a

harassment free work environment

Engaged ldquoGalluprdquo to conduct survey across the organization and collect feedback

regarding ldquoHow employees feel about the organizationrdquo

Introduced 1 year 2 year commitment benefit based contracts ensuring the

organization gets full benefit for the cost incurred on training imparted

Medical Insurance to take care of critical ailments and Hospitalization

Retention

Listed below are some of the measures HTMT plan to implement to keep associates

motivated

Performance based Variable Incentive schemes

Several non-monetary recognitions for outstanding associates

Create an awareness drive for each target amp action plan not just to make the

associates aware of the target and action plan but to boost their adrenaline in their

day-to-day operation

Bundle monetary and non-monetary incentives with individual and team

performance to encourage them to reach the set goals

Regular floor monitoring coaching followed by one-to-one feedback covering

strengths amp areas of improvements

Availability of an employee help-line to ensure timely redressal of grievances

Put associates through bi-annual personality development amp career growth

programs

Ensure participation in ldquoSkip Level Meetingsrdquo between associates amp management

handled by the COO HR Head Respective Business Unit Head to voice out any

concerns with relation to their job work environment peers supervisors etc

Employee motivation and retention strategy (reward amp Incentives plan)

HTMT believes and has implemented an attractive reward amp incentive policy Every agent

has the opportunity to earn 20 over and above his fixed salary which is linked to

performance This highly incentivised structure ensures that agents give their peak

productivity Over and above the compensation structure HTMT has implemented the

following programs to ensure retention of talent

HTMT believes and focuses on Intrinsic Motivation by ensuring enough

opportunities are provided within the organization for employees to have a sense of

ownership

We have a strong mentoring program for nurturing talent Each senior management

personnel adopt a group of 5 fast trackers in consultation with the CEO and HRD

and mentors round the year The mentor also takes part in the performance

appraisal and performance improvement program The Mentor is responsible for

career management of the employee Development of the employeersquos under the

senior manager is a KRA for the senior manager

HTMT takes pride in its innovative HR policies the management at HTMT work

hard in retaining their employees We have been an employee centric organization

and understand that the BPO sector is largely people centric we have excellent

policies to recruit and retain talent

Employee career path plans

Career planning is viewed from two angles

Linear plan ndash this is for employees who are driven by motives such as power and

achievement which will help them move in an upward direction within the organization

Expert ndash for individuals who are keen on advancing their expertise in onersquos chosen field

on the assumption that they are motivated by expertise technical competence and security

The important distinction being between the linear progression and expert progression

being that there is no specific time limit for a person to move and also the financial

implications are different

Career Management Philosophy

HTMT believes in the capability of its home grown talent primarily because of their

understanding of internal processes and their exposure to the existing systems and

procedures As a philosophy HTMT will encourage Internal Promotions for its existing

positions It will be HTMTrsquos endeavor to fill all positions through internal growth and

external search will only be done in instances in which it is unable to fill positions through

internal growth

Career Progression will be based purely on performance and NOT on number of years of

experience and Seniority in the organization An employee has the opportunity to move

across functions and gain multi process exposure-through internal job postings It is to be

noted that only available vacancies will be filled up by internal promotions to the extent it

is found feasible

Graph-9-Diagrammatic representation of HTMT fast track career path plans

CUSTOMER SERVICE REPRESENTATIVE

FRONTLINE MANAGER (TRGQA OPS)

Functional TRANSITION Lead (TRG QA OPS)

OPERATION MANAGER TRAINING MANAGER

QA MANAGER

o Employee background checks

Full background check is conducted for each successful candidate This

includes checking whether the candidates are free from any court cases apart

from their previous work experience etc After successful background check

applicants undergo a thorough medical examination wherein physical

laboratory and drug tests are conducted by duly accredited hospitalsclinics

o Employee educational standards

We accept candidates who are at minimum college graduates Course

preference during graduation may depend on clients requirements

Chapter-5

DATA ANALYSIS AND RESULTS

Present study is based on the information received through introduction of the

structured questionnaire [Annexure I] supplemented by the inputs derived from the

informal discussions subsequently held with the employees and company literatures The

data has been analyzed qualitatively The Analysis is done directly without considering the

interrelation with other questions the analysis and results of the study are discussed in the

following section

Table-8 - Showing about how employees feel about lsquoCommunication and Planningrsquo

GRAPH-10- Showing about how employees feel about lsquoCommunication and

Planningrsquo in HTMT

Interference The communication process and pattern is very important in an organization

communication and flow of information through a proper channel and its effectiveness is

necessary for a business to be successful and in interface with planning and done with the

employees of the company proves to be much effective 40of the employees agree and

166 of them strongly agree that they understand the long term strategy of the company25

strongly agree and 566 agree that they have confidence in the leadership of the

company48 agree and 30 of employees strongly agree that they do have confidence in the

top management of the company

Table -9- specifying about their role in the Company

Particulars

No of Respondent employees

(1)-Disagree strongly

(2) (3) (4) (5)-Agree Strongly

Understand the long-term strategy of the company

2 2 21 24 10

Have confidence in the leadership of the company

2 2 7 34 15

Have confidence in the top management of the company

2 2 9 29 18

Particulars

(1)-Disagree

strongly

(2) (3) (4) (5)-Agree

Strongly

Given enough authority to make

decisions I need to make

2 4 25 17 12

like the type of work that I do 0 3 9 26 22

believe my job is secure 2 7 10 20 21

Graph-11- specifying about the employee role in the company

Inference Employee empowerment is the buzz word in the recent trends of HRMand their role

and the degree of sense of job security effects the attrition rate of the company28 of the

employees agree and 20 of the employees strongly agree that they are given enough

authority to make decisions and very less ie 333 of them disagree strongly to the above

point 433 agree and 366 strongly agree that the like the type of work they do33 agree

and 35 of them strongly agree that they believe their job is secure 116 of the employee

disagree to the latter pont

Table- 10-Specifying how the employees feel about the corporate culture

Particulars

Corporate communications frequent enough

0 6 21 19 14

I can trust what the company tells me 3 6 8 31 12

Believe there is a spirit of cooperation 1 4 6 23 26

Graph-12- Specifying how the employees feel about the corporate culture

Inference316 of the employees and 2333 of the agree strongly that their corporate

communication is frequent enough 516 agree and 20 of the employees strongly

agree that they can trust what the company tells them 3833 agree and 4833

strongly agree that that there is a sprit of cooperation in the company Its a good sing

for the company that 0 of the employees have disagreed strongly to the option of

corporate communication frequent enough and 166 of them disagree strongly that

there is a sprit of corporation

Table -11- Showing the employee relationship with immediate supervisor

Particulars

(1)-Disagree

strongly

(2) (3) (4) (5)-Agree

Strongly

supervisor treats me fairly 2 3 10 22 23

supervisor asks me for my input to help

make decisions

2 6 11 22 19

Supervisor give me full freedom to

take any decision

6 4 19 17 14

Graph -13 ndashShowing the employee relationship with immediate supervisor

Inference In any organization or process for that matter relationship with the team

member or team leader is significant to have a cordial working condition In this

regard the employees of HTMT of 36 agree and 3833 strongly agree that they are

being treated fairly by the team leader or supervisor 3666 agree and 316 strongly

agree that they are asked for their input by the supervisorsteam leaders and only 10

disagree for the above point2833 agree and 2333 strongly agree that the

supervisors give full freedom to take decisions

Table-12- Specifying about the Pay and Benefits

Graph-14- specifying about the pay and benefit

Inference The major motivating factors either to retain the employees or the cause for the

attrition is the pay and benefits offered by the company With this regard only 666

of them agree strongly and 316 agree that their salary is fair for their

responsibilities and 1666 disagree strongly and 20 just disagree for the above

Particulars

salary is fair for my responsibilities 10 12 15 19 24

Table-13- Showing the Rating of HTMT

Particulars

(1)-Disagree

strongly

(2) (3) (4) (5)-Agree

Strongly

salary 2 14 24 11 8

Working conditions 15 15 15 14 4

Advancement Training Development 14 15 11 12 7

Over all 4 26 13 11 5

Graph-15- showing the rating of HTMT

Inference when asked to rate their company in terms of the salary working conditions

and others as shown in the graph 25 have rated high and 66 as low with respect to the

working conditions prevailing in the company 333 have rated high but 1333 of

them have rated low with reference to the salary structure of the company over all 4333

have rated high and 833 low

Table-14-Showing the effect of shift change policy of HTMT on maintaining the

WLB of employees

Graph-16- Showing the effect of shift change policy of HTMT on maintaining the

WLB of employees

Inference The above graph shows that majority of the employees ie 316 of them

neither agrees nor disagree that the shift change policy does affect the WLB or helps in

WLB but in average of 21 agree that the shift change policy helps in maintaining a

WLB But in average of 21 the respondents disagree that there is any effect of shift

change policy on the WLB

Particulars

(1)-Disagree

strongly

(2) (3) (4) (5)-Agree

Strongly

Shift change policy of HTMT 6 9 19 17 9

Table- 15- Specifying the Main cause for Attrition in HTMT

Particulars

Respondent

employees

Better Salary 14

Better working environment 40

Personal and health reasons 4

Higher Education 6

Shift industry 4

Others 0

Graph-17- Specifying the Main cause for Attrition in HTMT

Inference When the employees were asked about what could be the reasons for the

attrition in HTMT 6666 of the respondents have said that it could be because of better

working conditions and 2333 have opted for salary as the reasons for atrrtionand in

least 666 for personal and health reasons 10 for higher education and 666 for shift

in industry

Table -16- Showing the effectiveness of the HR-Policies of HTMT

Particulars

(1)-Highly

effective

Effective

Average

(4)-Below

Average

Cross training 8 25 22 5

Open Door policy 6 31 19 4

Shift Rotation 8 20 21 11

Job Enrichment 10 20 24 6

Internal Job posting 20 14 19 7

Internal and External Training Programme

12 21 18 9

Graph-18- Showing the effectiveness of the HR -Policies of HTMT

Inference The above graph shows the effectiveness of the Retention strategies of HTMT

41 of the employees think that the policy of cross training in effective but 3666 think

that its effect is average and only 833 say its effectiveness is below average In terms of

shift rotation policy 316 think it is average and 5166 rate it effective in terms of job

enrichment 40 rate it average and 10 below average and 3333 say effective and

1666 say highly effective 3333 say that the internal job posting is highly effective

and 2333 just effective 3166 rate its effectiveness as average and 1166 below

average

Table-17- Showing the effectiveness of retention Strategies of HTMT

Particulars

(1)-Highly effective

(2)-Effective (3)-Average

(4)-Below Average

Career Path 11 20 21 8

Scope for higher education 9 21 18 12

Enhanced incentive schemes 6 16 28 10

Work life balance strategies 7 22 23 8

Conducting employment development programme

10 7 23 10

Graph-19- Showing the effectiveness of retention Strategies of HTMT

Inference1833 of employees rate career path process as highly effective and low of

1333 rate the effectiveness as below average15 of the employees feel the policy of

giving scope for higher education is highly effective in retaining the employees and low

of 20 have rated its effectiveness as below average 4666 rate the policy of enhanced

incentive scheme as average and only 10 as highly effective1166 think that work life

balancing strategies has highly effective and 1333 has below average1666 say the

strategy of conducting employment programme is highly effective and 1666 think it

effectiveness is below average

Chapter-6

Findings

i Among the total respondents (6666) of them stated that the main

reasons for attrition are the working conditions

ii Out of the total respondents (56) of them agree that they understand

the long term strategy of the company

iii Among the total respondents (48) of them agree that they are given

enough authority to make decisions

iv More than (50) of the total respondents agree that the relationship

with the immediate supervisor is good and supervisors treat them fairly

v Among the total respondents (1833) think that the shift change

policy effectiveness is below average

vi The employees have indicated that the performance appraisal system in

the company is not proper and have also indicated that this may be the

major reason for leaving the company

vii Pay and benefits- More than 50 of the employees want hike in

salary Cab facility to be provided or transportation allowance to be

given in the compensation package

viii employees have desired to have more of refreshment programmes and

personality development programme so that it reduces their stress

ix The prime finding which shows the main reason for employee attrition

is the salary as discussed before and also in relation to that is the slow

growth of career in the company and promotions to be done takes long

time and many are not happy with that and this may indirectly give way

for de-motivating them and increase in attrition rate in turn

x The employees have shown their concern for having a non transparent

way of dealing with I J P(internal job posting)

Recommendations

i A committee has to be formed to keep track on working conditions by taking

feedback from employees and taking necessary steps for continuous improvement

ii Providing and facilitating the right working environment is critical to retaining

employees given the nature of the work This includes providing a safe and secure

workplace to all employees and transparency and objectivity in performance

management compensation and promotion policies to build and maintain

confidence MBO system (management by objective) could be adopted

iii The ability of the employee to speak his or her mind freely within the organization

is another key factor in employee retention Few of the programmes like best feed

back or best suggestion may also bring about more innovative and creative ideas

which encourage them to perform better So that they need not feel bored of the

monotonous job work

iv The staff members must feel rewarded recognized and appreciated Frequently

saying thank you goes a long way Monetary rewards bonuses and gifts make the

thank you even more appreciated Understandable raises tied to accomplishments

and achievement help retain staff

v The company should opt for employee Empowerment and should give few

decision making powers so that they need not wait for team leader permission and

indirectly it would motivate the employees to do better and improve decision

making ability Involve employees in decisions that affect their jobs and the overall

direction of the company whenever possible

vi The best action the company can do to try to boost their retention rates is to

analyze salary and benefits packages to determine if they measure up to the

competition Policies and Benefits Can Reduce Turnover

vii The concept of ldquopay for complexityrdquo could be implemented which recognizes

that functions and processes vary in complexity and hence should be compensated

differently

viii Employees are not happy with the appraisal system so the company should think

of changing the present appraisal system or having an more transparent system like

involving employee participation in that 360 degree kind of appraisal system

would be an good option

ix Career aspirations may leave if they are not rotated to a favorable assignment soon

enough and if timely Promotions not made So the company should opt for job

rotation

x Implement a structured and formal exit interview process and consider the exit

interview results as a valuable and important feed back for further improvement

Conclusion

BPO industry is leading the Indian IT industry growth The projections for future are

encouraging but the challenges facing the industry are no less daunting A shortfall of

talented workforce coupled with a high attrition rate may have a crippling effect on the

industry Ability to arrest attrition therefore assumes strategic significance and can be

used as a competitive advantage for long-term survival in the industry

We can safely conclude that attrition and retention in the ITES sector has the potential to

derail what promises to be a multi-billion dollar export earner for India It is possible to

temper high attrition rates by adopting a strategic approach to the management of human

capital where there is synergy between the personal development goals of employees and

the developmental goals of the company

The BPO industry will have to bear with the inevitable evil of attrition for the coming

decades but with strategic implementation of the HR policies of the company

To conclude BPOs need to understand that now the case is not about giving more salaries

and preventing the employees from leaving Employees need much more than what is

obvious A long term relationship needs to be established with its employees Moreover

employees in this sector need a lot of personal space and a well thought-out career growth

plan Also HR practices are needed to be fine-tuned so as to get the right kind of

employees Some of the strategies suggested in this paper can be very easily implemented

without any cost to the company Some other strategies are not so easily implement able

but are very important for the growth of this sector and are necessary for benefiting the

country on the whole and make it much easier and manageable