IBM plans to curb attrition


The Big Blue is gearing up to cash in on the attrition factor, one of the most worrying issues on the minds of CEOs around the world. Simply put, IBM will increasingly share its internal human experience and expertise, gathered over the years from managing a mammoth workforce of 330,000 people, with enterprises around the world, for a price.

PwC’s consulting business, which was bought over by IBM in October 2002 for $3.5 billion, has had a small share of talent consulting. Now IBM is trying to explore and develop this business by taking it global, especially to “large people factor” countries like India and China.

“Hiring is big in India. But there ends the matter,” says the global leader, human capital management (HCM), IBM. Recruitments, in most cases, are not followed up with training, career enhancement and career mapping, thereby inducing talent to depart quickly. Before starting up in India, IBM wants to quiz CEOs on,

* Existing HR practices and processes, Quality of HR;

* Understanding of the company’s core business;

* HR focus on training, education, career progression initiatives, retention strategies;

* and on the monies, energies and time the CEOs invest in people development;

India has one of the highest attrition levels in the world at 40-45% in IT and BPO and 20-25% in all businesses. Enterprises have been spending heavily in technologies and processes in the last five years. But now, Indian CEOs are beginning to talk about investing in people, training, talent development and career betterment.

The talent management market, that includes services like hiring, training, software / hardware, performance management and career enhancement devices, is expected to be a $30 billion market by 2010, according to studies by Yankee Group and IBM. The sector is growing at 10 to 15% a year today.

IBM and Accenture together have a 10% share in the market, while Deloitte, Hewitt and CapGemini account for small shares. The market is dominated by hundreds of small and medium companies. IBM’s target is to double this business globally and quadruple it in India.


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