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SHIV SHAKTI

International Journal in Multidisciplinary and

Academic Research (SSIJMAR)

Vol. 3, No. 3, May-June (ISSN 2278 – 5973)

THE PERSPECTIVE OF CHALLENGES FOR WOMEN HR MANAGERS

IN INDIAN BPO INDUSTRY

Dr. Hema Gulati*

*Asst. Professor, Department of Management Studies, DAV Institute of

Management, NH-3, NIT. Faridabad. # 9868351887,gulati_hema@yahoo.com

Impact Factor = 3.133 (Scientific Journal Impact Factor Value for 2012 by Inno Space

Scientific Journal Impact Factor)

Indexing:

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ABSTRACT

According to the study conducted by NASSCOM and Everest India, Indian outsourcing industry

is still the global leader in outsourcing market. Mr. Som Mittal, the then President NASSCOM,

said in 2010, “By 2020, the industry expects to have around 5 million women employees on its

rolls. Currently, the industry has around 37% women employees and around 26% of the female

employees are chief wage earners” and women being the major work force in BPO industry, also

contribute to higher attrition rate. The review of literature has provided a valuable insight in the

various aspects of BPO industry, HR practices and the challenges in the existing scenario which

are unique as per industry‟s uniqueness. This research paper is an attempt to provide an overview

of the challenges being faced by professional women in BPO industry. Data collected from 76

women HR managers of various domestic and international BPOs in Delhi and NCR was

analyzed using SPSS 17.0 using f-test (ANOVA) and concluded that there is significant

relationship among ten identified HRM challenges from the perspective of the women HR

managers of domestic and international BPO organizations and in relation to the size of the

organization.

Key Words: Attrition, Gender inclusivity, HR Challenges, Outsourcing, Women workforce.

The Perspective of Challenges for Women HR Managers in Indian BPO

Industry

ABSTRACT

According to the study conducted by NASSCOM and Everest India, Indian outsourcing industry

is still the global leader in outsourcing market. Mr. Som Mittal, the then President NASSCOM,

said in 2010, “By 2020, the industry expects to have around 5 million women employees on its

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rolls. Currently, the industry has around 37% women employees and around 26% of the female

employees are chief wage earners” and women being the major work force in BPO industry, also

contribute to higher attrition rate. The review of literature has provided a valuable insight in the

various aspects of BPO industry, HR practices and the challenges in the existing scenario which

are unique as per industry‟s uniqueness. This research paper is an attempt to provide an overview

of the challenges being faced by professional women in BPO industry. Data collected from 76

women HR managers of various domestic and international BPOs in Delhi and NCR was

analyzed using SPSS 17.0 using f-test (ANOVA) and concluded that there is significant

relationship among ten identified HRM challenges from the perspective of the women HR

managers of domestic and international BPO organizations and in relation to the size of the

organization.

Key Words: Attrition, Gender inclusivity, HR Challenges, Outsourcing, Women workforce.

Introduction:

Human resources may be defined as the sum total or aggregate of inherent abilities, acquired

knowledge and skills represented by the talents and aptitudes of the persons employed in the

organization. The organizations always remained concerned about the human resource and tried

to design different approaches for their well being. The three phases the century saw are termed

as welfare, development and empowerment. Today, human Resource Management has come to

be recognized as an inherent part of management, which is concerned with the human resources

of an organization. Its objective is the maintenance of better human relations in the organization

by the development, application and evaluation of policies, procedures and programmes relating

to human resources to optimize their contribution towards the realization of organizational

objectives. It helps diagnose the organizational and industrial problems in an organization,

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maintain an active network with the key managers and in managing performances of the

employees with respect to the organizational goals. It helps in creating the right atmosphere in

the organization for implementing change.

Outsourcing: The Concept and its present state in India

Outsourcing refers to the delegation of non-core operations from internal production to an

external entity specialized in the management of that operation. Instead of being the jack of all

trades, the smart organizations have now redefined the way of working and now aim at being the

master of their core business. BPO has become the obvious strategic choice of the companies

looking at the visible profits of cost reduction by Outsourcing the non-core processes while

improving the quality of service, increasing shareholder value etc. (Shah and Sharma 2006).

Typically outsourced business segments include information technology, human resources,

facilities and real estate management, and accounting. Many companies also outsource customer

support; manufacturing and engineering to market have also gained importance.

According to the study conducted by NASSCOM and Everest India, Indian outsourcing industry

is still the global leader in outsourcing market. Despite the uncertainties popping up in the global

outsourcing market owing to slow recovery of U.S economy from Wall Street crisis coupled with

Euro crisis, Indian BPOs have maintained their growth. In 2013, Mr. Som Mittal, the then

President of NASSCOM said, “The industry added 180,000 new jobs in 2012 and is expected to

add 130,000 to 150,000 jobs this year. The industry employs three million people with average

age of 27 years.”

It is also established that India has the largest number of working women in any single country in

the world, which can be partly attributed to the growth of the IT-BPO industry. In 2010, Mr.

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Som Mittal, the then President of NASSCOM said “By 2020, the industry expects to have

around 5 million women employees on its rolls. Currently, the industry has around 37% women

employees and around 26% of the female employees are chief wage earners.” In 2013, PTI

quoted Mr. Som Mittal (The Economic Times, Jan. 2013) “About 45 per cent of the new intake

(hires) is women... The number of women employed in the BPO segment is higher." IT-BPO

industry has set high standard in gender inclusivity since women are a key and vital part of the

workforce, and their participation in the workforce is seen as a critical enabling factor for

continued growth of the industry. And the well being and security of women work force is the

major concern of the industry. NASSCOM has issued robust guidelines on the issue and people

follow that since the industry works on a 24/7 basis and women work at night also. Since this

industry has started blooming with all its might during the last ten years, it is facing many new

challenges with every passing day which are unique as per its own uniqueness. So the toughest

task for an HR manager is not only to bridge the ever-increasing demand and supply gap but also

to provide the right and conducive environment for the women work force to keep pace with the

unique work patterns in this industry with the devilish problem of high attrition rate which, no

doubt, is reducing but still as higher as 25-30 percent at present and women being the major

work force in BPO industry, also contribute to higher attrition rate. This research paper is an

attempt to provide an overview of the challenges being faced by women HR Managers in BPO

industry with the changing social expectations both at work and at home. Adding to this is the

issue of maintaining consistency in performance and keeping the motivation levels high, despite

the monotonous work.

Review of Literature:

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In order to understand both the concepts of human resource management and the challenges in

BPO industry in general and specifically for women HR managers, we need to study the

literature in the light of both.

Khan, Sami A. (1998) has tried to present the transformed face of Human Resource

Management from Management development to development especially in the 21st century and

the globalize world and concludes that the impact of the transformation of the HR function and

processes should be measurable and HR programmes have to be more answerable in short and

long term perspectives. While Satpathy, B. (2002) studied the problem of finding out an alternative

solutions to the work life equation based on Indian philosophy and Indian culture and develop a

model called „Management By Care‟ to deal with such problems arising in Indian organizations,

Seth, Satish (2004) explained that attracting and nurturing talent has become the single most

dominant force. On one side, Punia, B. K., (2004) highlighted the fact that Indian organizations

are finding it difficult to retain the talent and are resorting to newer strategies of empowerment to

retain the best talent while on the other side Joshi, Rashmi (2008) explains that in view of the

consequent attrition that is often a major setback to a company on various fronts, the

practice of rehiring former employees is in fact catching on to recall exceptional talent,

especially when the organizations face a severe shortage of trained, skilled personnel.

While reviewing the literature available on HR challenges and employee retention in BPO industry,

it has been observed that most researches in the HRM have addressed only specific problems

related to its environmental analysis like challenges, growth and opportunities, the problem of

attrition, the HRM systems, and issues of job stress, job satisfaction, individual performance etc.

While Sharma and Jyoti (2008) carried out research in the area of employee motivation,

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performance management and employee satisfaction in education industry, and so also Smerek

and Peterson (2006); C.H. Unnikrishnan (2008) worked on Pharma industry and Bhattacharya,

Subhashish (2004) tried to find causes in the consumer durable industry but BPO sector has not

been explored to a great extent. Literature review has also shown how various researchers have

identified very many reasons behind the escalating problem of attrition and how many of them

have even suggested recommendations to control it (Misra 2007, Prakash and Chowdhary 2004,

Joshi 2004). Many researchers like Budhwar et al. (2006) have worked on various domains like

the HRM systems and practices, Sharma (2006) and E-sat survey (2005) tried to find factors

responsible for job satisfaction, and Kanwar et al. worked on burnout syndrome. However, no

systematic and comprehensive work has been found that collaborates all the facets viz.

retention, employee motivation, new industrial approach, leadership, talent management

etc. to combat the most burning issue of the present times i.e. attrition.

Mr Dan Sandhu, CEO, Vertex India (2005), felt attrition in BPOs was not 'the problem' but the

output of other problems in a company. He emphasizes the importance of bringing change in the

candidate's attitude to match the company's value structure. Mr Anupam Prakash (2005)

recommended a change in the workforce profile through a change in the education system.

Girish Suryavanshi, Associate VP, Mphasis (2006) said that though India is still a preferred

outsourcing destination, there is a need to improve infrastructure growth in the cities where

BPOs have a large presence.

When we review literature in relation to the challenges faced by women HR managers, an

interesting revelation is that the percentage of women in senior management position in India is

very low as compared to other developed or developing countries. Grant Thornton International

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Business report (2012) reveals that at the country level, Russia has the highest proportion of

women in senior management (46%), followed by Botswana, the Philippines and Thailand (all

39%). At the other end are countries with relatively patriarchal cultures where the proportion of

women in senior management is much lower, such as Japan (5%), India (14%) and the United

Arab Emirates (15%). As per the reports of NASSCOM, some critical impediments, especially

socio-cultural and psychological perspectives such as sex-role stereotyping, few female role

models and societal attitudes towards women have become hurdles to their career progression.

Another striking fact is that the Indian literature about women in management is limited and

nothing much has been pointed out exclusively about women managers. There are very few

studies about women managers in different industries which reveal a challenging environment

for women in the business world in India. As per Professor Pawan S. Budhwar and his team,

(2005) „Women in Management in the New Economic Environment,‟ “developments in

information technology and related services sectors are helping women in India to move out of

their traditional household roles and develop a career in organizations.” And they emphasized

that merely having programs for women in the workplace will not be sufficient. Rather, there

must be a true commitment on the part of senior management to hire women managers, including

a policy for advancement linked to the business strategy.

Dr.Ganesh Natarajan, CEO, Zensar Technologies and Chairman, NASSCOM, said “Currently,

women constitute about 23 percent of the IT employees in India. Of this, only 3 percent of

women are in top management positions…….Though women have a natural flair for leadership,

in professional lives they face the glass ceiling.” This ceiling can be broken by building

networks, building one‟s reputation in a company and being aware of one‟s rights.

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However, according to DataQuest's Best Employer Survey 2012, the percentage of women

employed in the IT industry in India has actually decreased from 26% in 2010 to 22% in 2012

even though the number of jobs created in this sector continues to increase annually.

Considering, then, how important the BPO industry may be for the employment of young female

professionals, it is important to understand the challenges they face at present and looking at the

gap in available studies, this topic is considered for research in the present study.

Significance of the Study:

In the light of above stated facts, the relevance and significance of current research paper is

enhanced as its findings will help women HR managers of BPO sector who continuously strive

to maintain balance between the demand and supply of competent and suitable employees for

their organizations and to help themselves in attaining the balance between personal and

professional front.

Research Objectives :

To highlight the challenges in respect to women HR managers in BPO sector

To analyze the nature of relationship between HRM challenges for women managers and

the type of organization and area of operation of the organizations

To analyze the nature of relationship between HRM challenges for women managers and

their experience in the field

Research Methodology:

The study is based both on the secondary data and primary data. The primary data was collected

by way of administering a structured questionnaire to the women HRM practitioners of various

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domestic and international BPO organizations in Delhi and NCR regions. The practitioners

approached were of all ranks and all departments of HRM: recruitment, training, salary

administration, strategy management etc. The questionnaire was sent to 85 practitioners but the

usable responses received were only 76 resulting into a response rate of about 90 percent. The

secondary data regarding the demographic characteristics was collected from the websites of

various organizations and the survey reports of various research agencies. The data was analyzed

using SPSS 17.0 software.

DATA ANALYSIS:

Table 1 shows the demographic profile of the respondents i.e. female HR managers (Primary

data) and of organizations where the HR managers were approached for survey (secondary data)

on the basis of area of operation, size of organization, no. of years in business, no. of employees,

and financial turn over.

Table 1: Demographic Profile of Respondents and Sampled BPO Organizations

S.No. Demographic Variables Description Frequencies

(No. of

Respondents)

Percentages

RESPONDENTS*

1. Qualification of Respondents Professional 67 88.2%

Non-Professional 9 11.8%

2. Age of Respondents 21years-25years 5 6.6%

26years-30years 32 42.1%

31years-35years 26 34.2%

36years and above 13 17.1%33

3. Experience of Respondents in

Present Organization

Less than 1 year 11 14.5%

1year-5years 40 52.6%

6years-10years 19 25.0%

Above 10years 6 7.9%

4. Total Experience of

Respondents

Less than 1 year 4 5.3%

1year-5year 43 56.6%

6year-10year 21 27.6%

Above 10years 8 10.5%

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ORGANIZATIONAL** 1. Area of Operation Domestic 20 26.3%

International 56 73.7%

2. Financial Turn over 1 Cr.-1000Cr. 34 44.7%

1001Cr.-2001Cr. 29 38.2%

2001Cr.-3001Cr. 5 6.6%

3001Cr.-4001Cr. 4 5.3%

4001Cr.and above 4 5.3%

3. Size of Organization Small 29 38.2%

Medium 43 56.6%

large 4 5.3%

4. No. of Employees 1001-10,000 29 38.2%

10001-20,000 29 38.2%

20001-30,000 14 18.4%

30001-40,000 0 -

40001 and above 4 5.3%

5. No. of Years in Business 1year-10years 30 39.5%

11years-20years 24 31.6%

21years-30years 9 11.8%

31years and above 13 17.1%

*Primary Data **Secondary Data

Table 2: Mean values and Significance of Challenges in relation to Area of Operation of the

Organization of the sampled Women HR Managers

***significant at 90% level (p 0.10): **significant at 95% level (p 0.05).

*significant at 99% level (p 0.01).

On analyzing the responses of women HR respondents working in domestic and international

BPOs, the t-value shows that there is a significant difference in the perception of both relating to

Inter personal relations and attrition where respondents of international BPOs find it more

challenging as compared to those working in domestic BPOs While for all other factors, there is

no significant difference in opinion of HR managers of domestic and international BPOs.

S.No. Challenges for Women HR

Managers

Domestic International t-value Significance

1. Performance Management 3.05 3.21 -.577 .566

2. Work life Balance 3.00 3.23 -.868 .388

3. Changing Employee

Expectations

2.95 2.96 -.408 .962

4. New Industrial Approach 3.40 3.45 -.140 .889

5. Compensation 3.10 3.55 -1.565 .122

6. Succession Planning 3.15 3.29 -.396 .693

7. Leadership 2.85 3.07 -.641 .524

8. Talent Management 2.95 2.93 .058 .954

9. Interpersonal Relationship 2.85 3.46 -1.804 .075***

10. Attrition 3.00 3.66 -1.955 .050**

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Table 3: Mean values and Significance of Challenges in relation to size of the Organization

of the sampled Women HR Managers

***significant at 90% level (p 0.10): **significant at 95% level (p 0.05):

*significant at 99% level (p 0.01).

On analyzing the responses of women HR respondents working in small, medium or large size

BPO, the F-value shows that there is a significant difference in the perception of women HR

managers on the factor of work-life balance where women HR managers working in medium

size organizations find it most challenging as compared to those working in small or large size

organizations. For all other factors, there is no significant difference in opinion of HR managers

of small, medium or large size BPOs.

Table 4: Mean values and Significance of Challenges in relation to the Total Experience of

the sampled Women HR Managers

S.No. Challenges for Women HR

Managers

Small Medium Large F-value Significance

1. Performance Management 3.31 3.14 2.50 1.017 .367

2. Work life Balance 3.17 3.30 1.25 4.601 .013**

3. Changing Employee

Expectations

3.21 2.74 3.50 1.960 .148

4. New Industrial Approach 3.38 3.42 4.00 .422 .657

5. Compensation 3.41 3.51 2.75 .845 .434

6. Succession Planning 3.38 3.21 2.75 .448 .640

7. Leadership 3.07 3.05 2.25 .701 .499

8. Talent Management 3.17 2.77 3.00 .707 .497

9. Interpersonal Relationship 2.97 3.53 3.25 1.625 .204

10. Attrition 3.48 3.51 3.25 .070 .932

S.No. Challenges for Women

HR Managers

Less than 1

year

1year-

5years

6year-

10years

Above

10years

F-value Significance

1. Performance

Management

3.75 3.37 2.62 3.25 2.885 .041**

2. Work life Balance 4.00 3.14 3.10 3.13 .927 .432

3. Changing Employee Expectations

3.25 3.30 2.52 2.13 4.379 .007*

4. New Industrial

Approach

3.00 3.60 2.86 4.25 3.232 .027**

5. Compensation 3.50 3.49 3.33 3.38 .098 .961

6. Succession Planning 3.00 3.79 2.48 2.50 7.295 .000*

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***significant at 90% level (p 0.10).

**significant at 95% level (p 0.05).

*significant at 99% level (p 0.01).

When F-test was performed to study the perception of female HR managers in relation to the

challenges w.r.t. the total experience of the respondents, it has been observed that the difference

in means is highly significant for two challenges out of ten challenges. The changing employee

expectations and succession planning show significant difference. Where employees with 1year

to 5 years of experience find the challenge of changing employee expectation different as

compared to those who have longest working experience, succession planning again concerns

those more who have been working for a longer period and have experience of at least 1year to 5

years. Performance management, New industrial approach, Talent management and interpersonal

relations are perceived differently by female HR managers with different period of experience in

terms of time period.

Findings and Implications of the study:

Managing people in the knowledge-based industry like outsourcing is critical as the human

resource is the soul of the organization. Since the outsourcing industry is growing at an

encouraging rate, the supply-demand issue of employees poses a major challenge in the industry,

particularly for experienced women HR professionals. It is observed that the challenges pose

equal threat to the women HR Managers whether they are from small, medium or large

organizations but there is slight variation in the perception of HR managers on work life balance

in relation to the size of organization. Maintaining interpersonal relations is a challenge of high

7. Leadership 3.00 3.12 2.95 2.63 .323 .809

8. Talent Management 2.00 3.35 2.29 2.88 3.619 .017**

9. Interpersonal

Relationship

2.75 3.16 3.24 4.50 2.760 .048**

10. Attrition 3.75 3.74 3.10 3.00 1.611 .194

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order for women HR managers of international organizations and so is for women HR managers

with longer experience in the industry.

Conclusion and Managerial Implications:

As per our current research, many experts are of believe that all these challenges can turn out to

be a real dampener in the growth of this industry. The study helps the strategy makers in BPO

sector to get insight into the relationship between important HR challenges that women

employees face and their relationship with the most important issue i.e. its existence in the

competitive environment. It also would be helpful for them to focus on the right cause and to get

insight to choose the right practice to not only manage but also to attract more talented women

employees at the senior positions. BPO companies have the potential to become leading

examples of women-friendly employers. The responsibility to create nondiscriminatory and

comfortable workplace environments should fall heavily on the largest and most economically

significant companies in the software sector, as they have the opportunity to set precedents not

only for the rest of the industry but for Indian employers as a whole.

Limitations of the Study:

The present findings are limited by their nature and the sample obtained. The sample is obtained

from Delhi and NCR region only. The number of international BPOs is more than that of the

domestic BPOs.

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