HR Role in the BPO Industry


India is one of the most prominent outsourcing destinations in the world. Indian BPOs compete with significant rivals such as the Philippines, Ireland, China, and Australia for around 56 percent of global business process outsourcing. The Indian BPO industry recently demonstrated its mettle by regaining clients from its competition (Philippines). The Indian BPO sector has been increasing at a 50 % yearly rate due to the high quality of service and solutions supplied. Furthermore, India BPOs’ global presence promotes smoother operations and tailored processes.

The BPO industry, which is one of the country’s largest employers, is on track to hire 1.1 million people in the near future. Hiring and retaining qualified people, on the other hand, is both a crucial difference and a challenge. The industry is facing a significant attrition problem that highlights the importance of the role of HR functions in the BPO industry more than ever. According to reports, the average attrition rate is around 30-35 percent. The issue becomes more pressing when an employee departs after completing training since a company loses roughly Rs. 60,000/-.

Here’s what this article includes:

  • What is BPO?
  • Defining HR BPO
  • How can HR help in the BPO Industry?
  • Role of HR in the BPO Industry

What is BPO?

Business Process Outsourcing (BPO) is a method of outsourcing where companies accept outsourcing requirements for their non-core functions as a third party. The organizations can have greater resources to focus on their core strengths after delegating non-essential duties.

An employer contracts for a specific business task, such as payroll with a third-party service provider in a business process outsourcing (BPO) agreement. In contrast to SAAS outsourcing, where the BPO provider provides both the service and the software, BPO outsourcing provides both the service and the software.

Defining HR BPO

The process of transferring human resource functions and obligations to outsourcing organizations is known as human resource BPO or HR outsourcing.

HR BPO responsibilities include everything from sourcing, hiring, onboarding, and firing and terminating employees that in-house human resource teams undertake. The only distinction is that the parent company will collaborate with an outsourced provider.

How can HR help in the BPO Industry?

An HR function’s principal responsibility is to ensure the business’s continuity. To reduce attrition, HR should look for warning indicators. However, in the current environment, it is critical for HR departments to devise effective strategies for retaining staff. This can be accomplished by implementing a variety of practices.

  • Engaging employees: All work and no play become tedious, and employees begin to consider leaving. Intervals of fun activities should be held and included as must to do HR functions in the BPO Industry. Employees should be informed about the organization’s goals and views on a regular basis.
  • Training: Companies have tried to maintain employees’ interest through training. It’s a technique to assist them in learning something new and expanding their skill set. It gives them the impression that their efforts are being noticed. Their enhanced performance, on the other hand, is a plus.
  • Better growth opportunities: Employees should also be able to examine profiles and possibilities across the organization’s verticals. Within the organization, better career possibilities or profiles should be created.

Role of HR in the BPO Industry

Key employee’s retention is critical to an organization’s long-term health and profitability. Customer happiness, improved product sales, satisfied colleagues and reporting staff, efficient succession planning, and deeply rooted organizational knowledge and learning are all acknowledged benefits of retaining your top people.

Employee retention is important since it involves organizational difficulties such as training time and investment, lost knowledge, insecure employees, and a time-consuming candidate hunt. As a result, losing a key employee is a costly proposition for a company. According to various estimates, losing a middle manager can cost up to five times his compensation in most firms.


HR functions, for the most part, continue to be talent-rich. Few firms may have used the scorecard system to reduce HR system costs and develop a profit center strategy. Most firms, on the other hand, would consider this vertical to be a cost center. The distinction between HR in a BPO and HR in any other industry will continue to be its alignment with a strong talent pool and creative business models. As the sector grows, the HR System will progress to a point when it will be attenuated towards the sector as a whole and will be unaffected by business climate instability.

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