Software Development companies in India normally hire many staff members, some times 100 (for medium size operations). They think of many ideas to retain the employees who carry out the work outsourced to them by their clients. One idea is to give them a bonus in the form of slips to get commitment from the older employees. This means that the new employees are more or less sheltered from immediate exposure to customers and can learn the outsourced jobs properly. These bonuses ensure that employees motivation level remains high, they deliver good results on even larger scale. The senior staff of these companies help their employees get better prospects and good job opportunities.

Retention awards - Plans by Software Development India.

The employee turnover (churn) has increased so much that many IT companies are now forced to organize and manage their employees in a professional manner. These organizations that take up the outsourced work use benefits like extra perks, medical insurance, general insurance to retain their employees. This fact has been confirmed by many Yahoo groups and Google groups that discuss HR activities and developments in the outsourcing industry.

In spite of the best efforts of organizations delivering the work that is outsourced to them, many employees do leave their current organizations. This is mainly due to ever increasing attractive perks / benefits that many companies offer to attract the best talent in the industry. Therefore, like the allegory "One cannot sneeze with his eyes open", it would be foolish to expect that a company can retain all its employees for ever. There may also be some employees that feel insecure continuing in the same company for long period of time.

While the overall subject is "outsourcing" and completion of outsourced work, each company in this field is unique in its own way. Many employees who seek "change" do leave their company in search of better exposure to new technology, handling bigger teams. In such cases the employees leave in spite of best efforts from their current organization. They are the pioneering kind of people who are looking for that "extra" experience in this very competitive outsourcing industry. All said and done no company can ever retain all its employees. They can however change, adapt and modify their strategies, norms and culture of their office or administration. Even this will not stop employees from feeling bored or fatigued. Disincentives like bonds for minimum work period after joining do not work. Positive motivation through bonus etc also have little effect on the segment of employees who are bent on looking for a change.

Outsourcing companies usually tend to trust those suppliers whose staff have been in the company for a long time, the company is stable and the staff are comfortable with their work environment. Any form of additional pressure or harassment can lead to various personnel problems. This in turn leads to the dissatisfaction and finally problems. The work produced by such staff is not up to the mark. For outsourcing companies, it is not just the profits but also the employee turnover that matters. High level of employee turnover means extra expenditure in recruiting and training more staff.