Outsourcing Employee Retention Program– Turnover costs can have significant negative impact on a company’s performance. Turnover cost can represent more than 12 percent of pre-tax income for the average company and nearly 40 percent for companies at the 75th percentile for turnover rate. Organizations and managers understand the importance of implementing an effective retention program but aren’t proactive in implementing one and often leave it for another day. That day hardly ever comes. Organizations that don’t have the time or have limited resources can outsource employee retention programs to specialists.
Outsourcing companies are no strangers to criticism from business and IT media. Often, offshore success is portrayed as an onshore failure. Critics assume that if a software development project has been outsourced to another company, particularly if that company is located outside of the United States, the move is precipitated by the organization’s internal shortcomings. In the world of outsourcing, employee retention is a pending issue facing both service providers and their clients. The former risk losing new opportunities due to the lack of talent and the latter don’t want to partner with teams that are constantly reshaped. Companies that outsource software development don’t want to hire just some programmers. They want to know that their product is in the right hands. So more and more often, they expect to work with dedicated development teams fully devoted to their project.
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