Some HR Dilemmas in Information Technology and Business Process Outsourcing Firms
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Case Details:
Case Code : HROB101
Case Length : 11 Pages
Period : 1983-2007
Pub Date : 2007
Teaching Note :Not Available Organization : Not applicable
Industry : Information Technology/ Business Process Outsourcing (BPO)
Countries : India/ Global
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Excerpts 3
Caselet 3: Curbing Employee Indiscipline
"IT and ITeS is an industry where a whole lot of people
are employed who are young, just after graduation and put inside stressful work
experience. […] there are companies who have sought our opinion on whether to
implement alcohol or HIV/AIDS tests."40
- Kiran Karnik, President, National Association of Software
and Service Employees (NASSCOM),41 in
2007.
"This would be highly discriminatory. I recommend
spreading awareness within the BPO industry to avoid social bottlenecks.
Something like an HIV test may make anyone an outcast. You can't reject anyone's
potential just because she/he is HIV infected. How can you throw anyone out on
the basis of this?"42
- Sam Chopra, President, Business Process Industry
Association of India (BPIAI),43 in 2007.
In fiscal 2006-07, more than half a million people worked in IT-enabled services
(ITeS) firms and Business Process Outsourcing (BPO) firms in India, according to
India's apex IT industry body, the National Association of Software and Services
Companies (NASSCOM).44 The BPO industry,
in particular, had a relatively young workforce with the median age of the
worker being just 25 years.45 The HR
professionals in BPOs had to contend with a very demanding job due to the issue
of high employee turnover. The employee turnover rate in Indian BPOs was as high
as 40 percent, compared to about 25 percent in more liberal markets.46
According to experts, cut-throat competition in this fast-growing industry was
directly contributing to the high employee turnover rate.
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In addition to this problem, HR professionals had to deal with challenges
such as absenteeism and other human issues peculiar to the BPO industry.
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It was widely known that the very nature of the work at BPOs
resulted in employee burnout and other stress-related disorders,
which contributed to these problems. The problem was compounded in
countries such as India, where employees had to work in night shifts
as these BPOs catered to overseas clients.
Working continuously in such shifts and handling stressful
transactions with clients led to mental and physical exhaustion. In
addition to these workplace stressors, some employees themselves
added to the stress because of their personal habits and
undisciplined lifestyle.47.. |
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