Salaries in the KPO industries in India

Salaries, which is an important parameter for employee attrition. In India, as the cost of living has increased, companies are providing very high incentives to their employees, especially the key personal to retain them for longer periods. In a study, it was found that 80-90% of employee leaves a company, due to unable to bear the personal expenses. Most of them are newly married or just going to be married people. Since in bachelors life, they don't think seriously about the family responsibilities, but as time runs, they have to take those responsibilities and results in finding alternative or high salary sources.

KPO industries are making high boom, and are giving very high salaries to their employees. In an article in Economics Times, "Salaries skyrocket in outsourcing cos" they have mentioned that " Fresh graduates (usually MBAs, CAs, engineers, law graduates and so on) with knowledge process offshoring (KPO) and legal process offshoring (LPO) companies are being offered starting packages of Rs 35,000 to Rs 40,000 per month."

According to HR experts, salaries for corresponding profiles in US have gone up by just 15% in the last two years.

According to an article in Hindu by Mr. Ravikanth, "In the Indian context, KPO salaries can be 25-50 per cent higher than those offered to the same domain experts (engineer, doctor, CA, lawyer, architect, biotechnologist, statistician, MBA, economist) in a conventional job".

According to Kamlani, co-founder of Pangea3, we provides entry-level salaries as par with the Mumbai market. However, after joining the company, one can earn 200-300 per cent more based on one's performance, he says

"Even 200 rupees (4.50 dollars) make a difference for a teenager as that much extra money means that many more movies or coffees. And if a competing vendor offers him that, he would take it and go," according to an Offshore Outsourcing Survey. This study also reveals that, "Also providing higher bonuses and incentives, offering faster career progression and providing job rotation could be some of the strategies to retain employees."

KPO sector offers a good working atmosphere with global exposure and an opportunity to develop skill sets in a specialised field. The remuneration is high as a person with about two years experience can draw a pay packet of around Rs 6 lakh (Rs 600,000) to Rs 8 lakh (Rs 800,000) annually, while an experienced professional gets anywhere between Rs 15 lakh (Rs 1.5 million) and Rs 20 lakh (Rs 2 million)....more

Thus salaries are going to play critical role in near future for the companies for retaining their key employees. According Hill & Associate country manager, Ashish Sonal, "Attrition not only pushes up costs incurred on the training of employees but also affects productivity along with the ideal level of 'knowledge maturity' of the organization and the employees".