Employee turnover reflects a company's internal strengths and weaknesses. New hires need to be constantly added, further costs in training them, getting them aligned to the company culture, etc.,all pose a challenge. Organizations also face difficulties in retaining the remaining employees as well as attracting potential employees. High attrition rates also lead to a chronic or systemic cycle. All this has a significant impact on the strength of a company in managing their business in a competitive environment. This study is conducted to find out the main causes which increase the employee turnover in BPO companies and to find out the way to control attrition. The work is descriptive in nature. This study was carried out in BPO companies in and around Bangalore. In this study, the opinion of 110 employees was taken for the analysis. The tool used for collecting the data was a structured questionnaire. For the analysis, chi-square and percentage method were used.

Business Process Outsourcing (BPO) is a delegation of one or more IT-intensive business processes to an external provider that, in turn, administers and manages the selected process based on defined and measurable performance criteria. BPO is one of the fastest growing segments of the ITES industry. It is growing at a phenomenal pace. Exports were worth $5.2 bn in 2004-2005 which grew at 41% in 2005-2006 to $7.3 bn.

The rapid growth and entry of new players have resulted in the poaching of employees in high numbers. Salaries at the entry level have risen 10-15% while 25-30% at the top level.

With 245,100 people employed at the end of march 31, 2004, against 171,000 last year, the industry witnessed a growth rate of about 40-42% in hiring. On the hiring front, the industry absorbed about 74,000 people in 2003 despite the attrition rate of 40-45%, a matter of concern. The size of the Indian BPO market was around $9-12 bn in 2006 and had around 4,00,000 of employee.

Today, attrition is one of the major problems faced by the HR managers of the IT industry across the globe. According to a recent survey conducted by All India Management Association (AIMA) on CEOs and HR managers of different IT organizations, attrition (also known as employee turnover) is the second important issue related to HR department.

Management Research Journal, BPO Companies, Business Process Outsourcing, All India Management Association, AIMA, Indian BPO Market, Globalization, Financial Crunch, Employee Relationship Management, ERM, Customer Relationship Management, CRM, Human Resource Management, HRM, Small Scale Industries, Large Scale Industries, Marketing Departments, Intellectual Capitals.