Monday, August 27, 2007
ICICI aims at 'single digit attrition'
ICICI Bank CEO speaking to the TOI says the bank aims to touch 'single digit attrition' figures even as it plans to recruit 20-30,000 people every year. The current attrition rate stands at 15-18%.
One of the initiatives he elaborated on: ICICI actively participating in increasing the pool of people with the right skill sets. The bank is providing a 6 month training module for the curricula of NIIT, Manipal University and ICFAI. Of course, this 'talent pool' is not exclusive to ICICI - it is available to other recruiters as well.
The bank's strategy thus is two fold:
1) Try to retain more of those who join you
2) Keep training more young people to take the place of those who leave you
However attrition is a difficult animal. ICICI is not one of the top paymasters in the industry, although it is very well regarded for 'quality' of work and as a training ground.
Given the continuing boom in the job market single digit attrition will probably remain a dream. But yes, the fact that ready and well trained replacements are available will make this fact of life easier to deal with!
A related news report on the same page notes: India has 47% of the global outsourcing market and will grow to a value of $40 billion this year. However, attrition rates are 40-60%, depending on who you ask, coupled with 10-15% annual wage inflation hitting the sector".
Reminds me of the old folk tale: killing the golden goose. If costs and labour shortages continue, BPOs may relocate to their home countries - or other cheaper places. Na rahenge itne easily available jobs, na rahegi itna attrition.
Remember the days of mushkil se milti thi paanch hazaar ki naukri?
One of the initiatives he elaborated on: ICICI actively participating in increasing the pool of people with the right skill sets. The bank is providing a 6 month training module for the curricula of NIIT, Manipal University and ICFAI. Of course, this 'talent pool' is not exclusive to ICICI - it is available to other recruiters as well.
The bank's strategy thus is two fold:
1) Try to retain more of those who join you
2) Keep training more young people to take the place of those who leave you
However attrition is a difficult animal. ICICI is not one of the top paymasters in the industry, although it is very well regarded for 'quality' of work and as a training ground.
Given the continuing boom in the job market single digit attrition will probably remain a dream. But yes, the fact that ready and well trained replacements are available will make this fact of life easier to deal with!
A related news report on the same page notes: India has 47% of the global outsourcing market and will grow to a value of $40 billion this year. However, attrition rates are 40-60%, depending on who you ask, coupled with 10-15% annual wage inflation hitting the sector".
Reminds me of the old folk tale: killing the golden goose. If costs and labour shortages continue, BPOs may relocate to their home countries - or other cheaper places. Na rahenge itne easily available jobs, na rahegi itna attrition.
Remember the days of mushkil se milti thi paanch hazaar ki naukri?
Labels: attrition
Comments:
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Nice Post.. whats more, just happened to be visiting ur JAM Blog a few minutes earlier.. nd reached these 2 places via different routes.. so, some coincidence there.
Newez, nice work on all the blogs and jammag.com Cool Stuff :)
Prateek
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Newez, nice work on all the blogs and jammag.com Cool Stuff :)
Prateek
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