Attrition Rate in offshoring firms – Factsheet

Date: Mar 21st, 2009

Reporting Attrition has become an art! There are multitude of ways companies can track or report attrition. From the day one of employment, from employees completing six months, from when employees complete training, billable employees, excluding involuntary attritions and so forth.

 Understanding the attrition percentage is helpful but what is more important is to see trends in attrition numbers over time. For companies looking to outsource they also need to compare that with their internal attrition rates. We have seen a few examples where client’s internal attrition rates are higher than those of the vendors.

The overall trend in attrition seems to be positive across the industry. Due to slow down of the economy people are not leaving as often and the number of job openings are less. This may change again if the economy opens up but overall the attrition will remain more in check and over the next few years should not be a key measurement factor for outsourcing vendors.

 Here are some general attrition #’s for some outsource vendors:

# Companies Mar-09 Dec-08
1 Genpact 21% 26%
2 WNS 22% 33.8%
3 Firstsource 35.8% 35.8%
4 Wipro BPO 13% 18%
5 EXL 21% 33.8%
6 WNS 22% 29%
7 TCS (IT +BPO) 12.8% 13.2%
8 Infosys (IT+BPO) 11.1% 11.8%
9 HCL 15.5% 13.4%
10 Syntel 10.1% 14.1%

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