The decision to outsource work to another geographic location is often predicated on the expectation of large potential cost savings and access to scalable talent pools. Whilst both goals are achievable, they can be severely impacted on by high levels of attrition at the outsourced destination (and even at home.) Without wanting to sound alarmist, your approach to managing attrition could make or break your plan in the medium to long-term.
All the evidence shows that rates of attrition are higher in the outsourcing world than in other areas of business and there are a number of factors which contribute to these disappointing statistics:
Any outsourcing project needs to have the management of attrition at its core. It might sound pessimistic to start the process by assuming that many of the people you recruit will leave but unfortunately experience proves that is exactly what happens.
Ask yourselves a series of basic questions:
Unfortunately, attrition is often treated as an HR issue and fingers are pointed if attrition rates are high. The management of attrition is a whole organisation priority and senior leaders need a laser-like focus on this throughout the lifetime of the project. If fingers are to be pointed over this issue then they should be firmly pointed at senior leaders.
We have many years’ experience of managing these issues and would love to work with you to develop processes to help you though this potentially challenging area.