India’s Latest Import Turnover

By Staff Report

Jun. 10, 2004

About one in three employees in India’s outsourcing companies quit within one year of getting the job, according to Dow Jones Newswires in New Delhi.
In response to the job-hopping, salaries in India’s $3.6 billion outsourcing industry are on the rise. Some companies, according to Dow Jones, are also finding themselves short on staff and are being forced to have poorly trained employees answer the thousands of customer-service calls pouring in from U.S. consumers.

“The quality issue has to be addressed,” says Nandan Nilekani, the CEO of Infosys, one of the larger companies in India. “The kind of increased scrutiny which we have got in the global media means that even a small quality issue can have much bigger resonance.”

Arun Seth is Managing Director of BT Worldwide, a British company that has outsourced some of its back-office operations to India. Seth tells Dow Jones, “As a result of higher attrition and growing salaries, there are big concerns over the competitiveness of the Indian outsourcing industry.”

For more information, see “A Call-Center Scam Prompts Greater Scrutiny.

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