Recruitment and Selection Practices in Business Process Outsourcing Industry

Authors

  • Amer Hani Al-Kassem

DOI:

https://doi.org/10.14738/abr.53.2180

Abstract

Regardless of company size, location or industry, one thing is certain that recruitment and selection process has become enormously challenging and complex task for human resource management function in business process outsourcing industry (BPO). Business process outsourcing organizations offer knowledge intensive services dependent on human resources for delivery and represent a cornerstone for value creation. Scholars revealed that organizations are increasingly afflicted with the issues concerning talent shortage. Moreover, it is conceivable that organizations on all ends of the spectrum might have a human resources department that is not equipped to handle difficulties such as low retention rates and exorbitant workforce turnover at their core responsibilities. All this has a significant impact on the strength and weaknesses of an organization in managing their business in a competitive environment. Therefore, this paper attempts to unveil the determinants of employment practices and understand the importance of measuring and managing employee’s hope to maximize their productivity and performance. In general, BPO organizations should maintain conducive work environment and adopt motivational rewards and policies along with best of the facilities to combat employee’s issues that have plagued the BPO industry.

References

ACAS (2014). Recruitment and Induction. Retrieved March 2014, from http://www.acas.org.uk/media/pdf/8/d/Recruitment-and-induction-advisory-booklet.pdf

Agrawal, S., Goswami, K., & Chatterjee, B. (2011). Challenges of ITES Companies in India. International Journal of Humanities and Social Science 1(2): 218-226.

Aiswarya, M. (2013). A Study on Effectiveness of Recruitment Process in HCL Technologies – BPO Chennai. International Journal of Management, 4(3): 14-18.

Anantharaja, A. (2009). Causes of Attrition in BPO Companies: Study of a Mid-Size Organization in India. The IUP Journal of Management Research, 8(11): 13-27.

Anoosha, M. (2012). A Study on Importance of Recruitment and Selection Process at Manasi Systems Technologies Pvt. Ltd (Master’s thesis). Gokaraju Rangaraju Institute of Engineering and Technology, Hyderabad, IN.

Ballantyne, I. (2009). Recruiting and selecting staff in organizations. In S. Gilmore and Williams, S. (eds) Human Resource Management, Oxford: Oxford University Press.

Borman, M. (2005). A decision making framework for information technology enabled business process outsourcing. Pacific Asia Conference on Information Systems (PACIS 2005) Proceedings, Paper 53.

Bratton, J., & Gold, J. (2007). The human resource management arena. In: J. Bratton & J. Gold (Eds.), Human resource management: Theory and practice (4th edition), (pp.1-72). Hampshire, UK: Macmillan.

Al-Kassem, A. H. (2017). Recruitment and Selection Practices in Business Process Outsourcing Industry. Archives of Business Research, 5(3), 40-52.

Bratton, J., & Gold, J. (2008). Human Resource Management Theory and Practice, Pal Grave Macmillan Publication, 3rd edition, New York.

Breaugh, J. A. (2013). Employee recruitment. Annual Review of Psychology, 64, 389–416.

Budhwar, P. S., Varma, A., Singh, V., & Dhar, R. (2006). HRM systems of Indian call centers: An exploratory study. International Journal of Human Resource Management, 17(5): 881-897.

Burke, R. J., & Cooper, C. L. (2005). Reinventing Human Resource Management: Challenges and New Directions. London & New York: Routledge.

Business Processing Association of the Philippines (BPAP). 2009–2013. Breakthroughs newsletter (various issues). (http://www.bpap.org).

Business Teacher (2015, January 2). Benefits and Challenges of the IT BPO Industry. Retrieved from http://www.businessteacher.org.uk/essays/business/benefits-and-challenges-of-the-it-bpo-industry.php.

Chordiya, K. D. (2013). Retention Strategies With Reference to BPO Sector. In Proceedings of 1st National Conference on “Dynamism in Management” Special Issue of International Journal of Engineering, Economics and Management, pp. 26-30.

Cohen, L., & El-Sawad, A. (2007). Lived Experiences of Offshoring: An Examination of UK and Indian Financial Service Employees’ accounts of themselves and one another. Human Relations, 60(8): 1235-1262.

Combs, G. M., Clapp-Smith, R., & Nadkarni, S. (2010). Managing BPO Service Workers in India: Examining Hope on Performance Outcomes. Human Resource Management, 49(3): 457-476.

Coward, C. T. (2003). Looking Beyond India: Factors that shape the Global Outsourcing Decisions of Small and Medium Sized Companies in America. The Electronic Journal of Information Systems in Developing Countries. Retrieved from http://www.ejisdc.org.

Chandrasekar, K. (2011). Managing Attrition: The Real Problem Behind the Growth of Business Process Outsourcing (BPO) Companies. Journal of Social Welfare and Management, 3(1): 27.

Davis, G. F., & Cobb, J. A. (2009). Resource Dependency Theory. Research in the Sociology of Organizations, pp. 1-31.

Davis, G. F. and J. A. Cobb (2010) "Resource dependence theory: Past and future." Stanford's organization theory renaissance, 1970-2000: 21-42. Bingley, NY: Emerald Group.

Dibbern, J. & Heinzl, A. (2009). Outsourcing of Information Systems Functions in Small and Medium Sized Enterprises: A Test of a Multi-Theoretical Model. Business & Information Systems Engineering, 1(1):101-110.

Drees, J. M. and P.P.M.A.R. Heugens (2013). "Synthesizing and Extending Resource Dependence Theory: A Meta-Analysis." Journal of Management, 39: 1666-1698.

Dumlao, D. (2012). IT-BPO Revenue reached $11 billion in 2011. Philippine Daily Inquirer. Retrieved from http://business.inquirer.net/53163/it-bpo-revenue-reached-11b-in-2011.

Economic Times (2013). BPO sector exports expected to have reached $17.8 billion: Milind Deora. Retrieved from http://articles.economictimes.indiatimes.com

Economist (2008, October 9). The World Economy: Bad or Worse. Economist.Com. Retrieved from http://www.economist.com/node/12381879.

Ezigbo, C. A. (2012). Justification of Outsourcing for Organization’s Competitive Advantage. European Journal of Social Sciences, 34(2): 262-272.

Failte Ireland (2013). Recruitment and Section: A guide to help you review your existing approach to recruitment and selection. Retrieved from http://www.failteireland.ie

Foot, M., & Hook, C. (2005). Introducing Human Resource Management, Fourth Edition, England, Prentice Hall.

French, R., & Rumbles, S. (2010). Recruitment and Selection. In Rees, G., & French, R. (Ed.), Leading, Managing and Developing People, 3rd edition (pp. 169-190). CIPD: UK.

Garfamy, R. M. (2013). Supply Management: A Transaction Cost Economics Framework. South East European Journal of Economics and Business, 7(2): 139–147.

Ghafoor, M., Martin, T., & Choo, E. S. (2012). Six ways social media technologies can accelerate large-scale change. Outlook point of view, 1: 1-2.

Gereffi, G., & Fernandez-Stark, K. (2010). The Offshore Services Industry: A Global Value Chain Approach. Durham: Center on Globalization Governance and Competitiveness - Duke University. Commisioned by CORFO.

Gereffi, G. and K. Fernandez-Stark (2011). “Global Value Chain Analysis: A Primer”, Center on Globalization, Governance & Competitiveness (CGGC), Duke University, North Carolina, USA.

Goel, D., & Thakur, P. (2007). India: An Attractive BPO Destination Marred By Alarming Attrition [White Paper]. Retrieved from http://www.tpi.net/pdf/papers/tpi_whitepaper_india.pdf

Gomez-Mejia, L. R., Balkin, D. B., & Cardy, R. L. (2010). Managing Human Resources, PHI Learning Pvt. Ltd., New Delhi.

Guo, K. L., & Sanchez, Y. (2005). Workplace communication. In N. Borkowski (Eds.), Organizational Behavior in Health Care (pp. 77-105). Sudbury, MA: Jones and Bartlett Publishers.

Haberberg, A., & Rieple, A. (2008). Strategic management: Theory and application, Oxford University Press, New York, NY.

Hagan, N. A. (2013). A study of the relationship between company size and business process outsourcing in manufacturing companies in Ghana. Unpublished Thesis, Ashesi University College, Ghana: Ghana.

Hillman, A. J., Withers, M. C. and B. J. Collins (2009). "Resource dependence theory: A review." Journal of Management 35: 1404-1427.

Jacobs, C., & Roodt, G. (2011). A Human Capital Predictive Model for Agent Performance in Contact Centres. SA Journal of Industrial Psychology, 37(1): 1-19.

Kangaraarachchi, R. (2010). Interview by Fernando, S, „Lanka heading to be more service oriented now’ - H R Leader, Daily News, 08 September.

Kennedy, R., Sheth, S., London, T., Jhaveri, E., & Kilibarda, L. (2013). Impact Sourcing: Assessing the Opportunity for Building a Thriving Industry. Retrieved from http://www.rockefellerfoundation.org.

Khandekar, A. & Sharma, A. (2006). Organizational Learning and Performance: Understanding the Indian Scenario in Present Global Context. Education & Training, 48(8): 682-692.

Kim, J. J., So, S. H., & Lee Y. H. (2007). The Effects of Trust on the Intention of Adopting Business Process Outsourcing: An Empirical Study. International Journal of Computer Science and Network Security, 7(10): 118-123.

Kripalani, M., Engardio, P., & Hamm, S. (2003). Cover story: The rise of India. Business Week, 3861, 66-76.

Kumar, N. A. (2011). Impact of Global Recession on Indian IT Industry and Effectiveness of E-Business in the Era of Recession. Global Journal of Business Management and Information Technology, 1(1): 9-25.

Kumar, V. (2008). High Attrition rate attributed to pay package, Online Article Retrieved from http://outsourceportfolio.com/high-attrition-rate-attributed-to-pay-package on September 7, 2009.

Kumar, R. & Arora, R. (2012). Determinants of Talent Retention in BPO Industry. The Indian Journal of Industrial Relations, 48(2): 259-273.

Lall, S. (2008, April 9). IMF Predicts Slower World Growth Amid Serious Market Crisis. International Monetary Fund.

Li, H. & Meissner, J. (2008). Improving Quality in Business Process Outsourcing through Technology, Working Paper. Lancaster University Management School.

Li, H., Chang, J., & Dong, M. (2008). Location selection of BDO vendors based on a game theory model. Human Systems Management, 27: 313-320.

Lockwood, J. (2012). Are We Getting the Right People for the Job? A Study of English Language Recruitment Assessment Practices in the Business Processing Outsourcing Sector: India and the Philippines. Journal of Business Communication, 49(2): 107-127.

Management Study Guide (2014, December 31). Effect of the Global Financial Crisis on the BPO Sector. Retrieved from http://www.managementstudyguide.com/effect-of-global-financial-crisis-on-bpo.htm

Mehta, A., Armenakis, A., Mehta, N., & Irani, F. (2006). Challenges and Opportunities of Business Process Outsourcing in India. Journal of Labor Research, 27(3): 323-338.

Miles, S. J, & Mangold, W. G. (2005). Positioning Southwest Airlines through employee branding. Business Horizons, 48: 535-545.

Nyamekye, F. (2012). Impact of motivation on employee retention: A case study of standard chartered bank Ghana limited (Master’s thesis, Institute Of Distance Learning, Kwame Nkrumah University of Science and Technology). Retrieved from http://dspace. knust.edu.gh

Odhiambo, O. A. (2010). The Value Chain Analysis in Telkom Kenya [Master’s thesis]. University of Naroibi, Kenya.

Pandita, K. (2011, April 25). The BPO and Offshoring Best Practices Forum: What are the top five challenges in bpo transitions that still need to be addressed in outsourcing/offshoring industry? [Linkedin]. Retrieved from https://www.linkedin.com/groups/what-are-top-five-challenges-99434.S.51711676

Pfeffer, J. (2003), “Introduction to the classic edition,” in Pfeffer, J. and Salancik, G. R., The External Control of organizations: A Resource Dependence Perspective (classic edition), Stanford University Press, Stanford, CA.

Pilbeam S., & Corbridge, M. (2006). People Resourcing: Contemporary Human Resource Management in Practice, Third Edition, Prentice Hall/Financial Times: Harlow.

Pio, E. (2007). HRM and Indian epistemologies: A Review and Avenues for Future Research. Human Resource Management Review, 17(3): 319-335.

Preethi, K., & Rajasekhar, T. (2013). The Significance of On-Boarding Process in Work Dimensions. Research Journal of Management Sciences, 2(9): 7-11.

Radhika (2008). 40 percent attrition happening in 120days. Online article Retrieved from www.mckinsey.com/clientsservice/bto/../pdf accessed on 23rd February 2009.

Riley, J. (2009, October 1). Economy No Deterrent; You a Retention Plan. Retrieved from http://www.bcaaz.com.

Rufini, A. & Torre, D. (2010). Choosing recruitment channels to fill high job positions. International Journal for Talent Management, 1-33.

Sharif, S. P. and Yeoh, K. K. (2014). "Independent Directors’ Resource Provision Capability in Publicly-listed Companies in Malaysia." Corporate Ownership and Control 11(3): 113-121.

Sharma, S. (2010). Retention Strategies in ITES-BPO Industry, viewed 5 October 2010 from http://www.bpoindia.org/research/retentionstrategies-call-center-industry.shtml

Steve (2012). Average salary of BPO employee in Philippines in 2012 at $9,182. Retrieved from http://www.bpmwatch.com.

Sturgeon, T., & Gereffi, G. (2009). "Measuring Success in the Global Economy: International Trade, Industrial Upgrading, and Business Function Outsourcing in Global Value Chains." Transnational Corporations, 18(2): 1-35.

Taylor, S. (2010). The relationship between sources of new employees and attitude towards job. The Journal of Social Psychology, 134(1): 99-110.

TELUS International (2015, January 2). Google and TELUS Share Insights on the Role of Culture in Leveraging BPO Partnerships and Customer Service. Retrieved from http://telusinternational-europe.com.

Torres, E. (2014). Philippines: A Magna Carta for Call Centre Workers. Equal Times. Retrieved from http://www.equaltimes.org.

Vermin, A., & Pooja, G. (2011). Work is to Balance Life and Life is to Balance Work: A Comparative Study. Business and Management: Contemporary Research Issues, Macmillan Publishers India Ltd., New Delhi: 102-109.

Downloads

Published

2017-03-19

How to Cite

Al-Kassem, A. H. (2017). Recruitment and Selection Practices in Business Process Outsourcing Industry. Archives of Business Research, 5(3), 40–52. https://doi.org/10.14738/abr.53.2180