Internal lateral entry; a strategic Human Resource policy in BPO sector

September 5, 2011: New Human Resource strategies are emerging in the Information Technology (IT) and Business Process Outsourcing (BPO) sector in India.

One of the fastest growing and developing sectors in India is the BPO and IT sector, with a turn over of around 14 billion US dollars which also host huge number of home country national workforce. The strength of any company or sector is the availability of skilled and talented work force. India may be rich with skilled and talented work force, but retaining the workforce is what the BPO sector finds most difficult.

It’s the time of realization for BPO firms where companies are looking forward to take necessary steps to retain the employees and provide a platform for freshers to grow within the firm. Earlier the trend was to hire outside laterals for the mid level positions.

Mid level employees are very essential for any organization as they are channels between top management and entry level employees. Hiring fresh or outside laterals was not much satisfying for the companies. Indian players are now exclusively focusing on retaining the internal workforce and recruiting internally to fill the mid level positions. The outside lateral recruitment has considerably reduced from the previous years.


Companies such as Infosys BPO, WNS Global Services, Hinduja Global solutions and many others have already concentrated on internal lateral recruitment. These companies have reduced the rate of external recruitments for laterals and have promoted more than 50 percentage of internal source in various mid level positions.

At some point of time freshers had a monopoly in the Business Process Outsourcing (BPO) sector. The demand for laterals in this particular sector was immense.  The trend is gradually changing and it is because of the end number of benefits prevailing in retaining the freshers and helping them grow to some higher position according to their abilities and capabilities. It is mutual benefit for both employee and employer as the employee can grow himself/herself along with the firm and can earn new role and responsibilities along with increased remunerations.

The sector holding a total work for of about eight lakh cannot afford loosing employees every now and then. It is the right time and right decision taken by the leading Indian companies in the BPO sector to retain the employees and changes the role of employees as they get more experienced.

Internal promotions will provide the organization to have much stronger mid level staffs who are well experienced and aware of each and every nooks and corners of the firm. Reducing external lateral recruitment is not just about retaining the employees; it’s also about growing the firm at a constant rate with strong workforce well maintained to manage and situation.   

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