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High attrition destroys the value of going offshore. It causes companies to lose knowledge, incur training fees, get caught up in the never-ending cycle of hiring, and fall behind on scheduled projects. Employee recruiting and retention are big issues for IT organizations, so create a work environment where the employees are involved in the development of rewards programs.

Although companies may say they know about all these offshore employee retention strategies, few practice them in their captive centers or measure whether their external vendors are practicing them. Why not? Because retention activities are time-consuming. Developing a thorough recruiting process, setting up a career advancement program, and conducting a formal employee satisfaction survey all take time. Unfortunately, it's a "no pain, no gain" situation. Companies are realizing that these programs are worth the effort, as they watch their best employees leave to work for the competition. Invest in your offshore employees and they in turn will help deliver outstanding returns.

By the way, if your employees complain of long hours, inadequate compensation, or an excessive workload, your best employees will leave and only those who are not worth retaining will stay.

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