Attrition rates in BPOs set to rise in two yrs: Assocham

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New Delhi, Oct 7: Industry body Assocham has said that the BPO sector in the country is may face a manpower shortage of 30-40% over the next two yearswith an increasing number of youth opting for careers in aviation, retail and hospitality segments.

The BPO sector is facing an attrition rate of 25-30% which is expected to increase to about 30-40 % by 2009.

Apart from inclination towards aviation, retail and hospitality, insecurity in BPO jobs and stringent working conditions would also contribute to the expected manpower shortage in the near future, Assocham said in a statement.

Assocham in its study on ‘Urban Youth’s New Emerging Choices for Career Making’ said aviation, hospitality and retail sectors are also experiencing a workforce shortage of 25-30% and is attracting a chunk of unemployed youth.

“Factors such as attractive and definite pay package with incentives and working conditions seem to be more moderate and regulated in areas of aviation, hospitality, retail and animation,” Assocham president Venugopal Dhoot said.

Due to stiff competition, BPOs have cut their operative costs which has impacted salary packages and facilities offered to the employees.