Global trade in services is fast growing than trade in goods. Outsourcing of intermediate goods and business services are the most rapidly growing components of international trade. IT-BPO sector has become one of the most significant growth catalysts for the Indian economy. In addition to strengthening India’s economy, this industry is also positively influencing the lives of its people through an active direct and indirect contribution to the various socio-economic parameters such as employment, standard of living and diversity among others. Human resources are the drivers and principal value-creators of the output of this industry. Therefore, attracting, training, retaining and motivating employees are the critical success-determinants. However, retaining talented employees is a serious concern in knowledge based organizations. The present study aims at identifying the major dimensions of attrition in BPO industry in Kerala. A survey instrument was developed for the study to gather information from the respondent employees in Kerala. The population for this study comprised of employees working in various BPOs in Kerala. A sample size of 240 was chosen by simple random sampling method from 50 selected BPOs in the State and Exploratory Factor Analysis was used to extract dimensions of employee retention. Twenty five variables were identified and six dimensions were extracted to delve into probable causes of employee retention. The result showed job support & recognition and Compensation & Career growth as the most significant factors of retention of employees in BPO industry in Kerala.

Keywords: Business process outsourcing; Retention; Employee turnover; Organizational culture; Compensation; Motivation.