Abstract
India has emerged as the top destination for global offshore outsourcing. According to the latest NASSCOM McKinsey Survey IT & ITES would add 7% to India's GDP by 2010 along with the creation of 8.8 million new jobs, and the number of professionals employed in IT & ITES sector is estimated at 1,045,000 as of March 2005. However, among the most complex problem faced by the IT & ITES industry is labour attrition. According to analysts, employee attrition rate in this sector varys between 20% and 40%, while it is around 15 percent in top firms. If these are any indications, the outsourcing industry is likely to face a shortage of 262,000 professionals by 2010. There is virtually a war among the organisations for acquiring talent, which is scarce. In this context the current paper explores what organisations are doing to retain employees. It also explores out the reasons why employees leave the organisation and tries to evolve strategies for retention of scarce IT talent in the fiercely competitive labour market.
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