How BPO cope with the present economic meltdown NASSCOM released a report that shows that the Indian BPO sector is no longer in danger of losing jobs. The New Year is about to bring good news for the Indian BPO. NASSCOM denies the prediction that the Indian BPO is about to undergo huge job cut of about 2.5 lakh in the first quarter of 2009. On the other hand, NASSCOM declared that only after an extensive research and interaction with its member companies, it has come to this decision. In fact, NASSCOM is about to release its forecast for the fiscal year 2009. It further added that BPO industry will continue to hire and the fear of large scale job loss is not expected. Along with these positive inputs, NASSCOM also expressed its fear of loss of huge manpower if the Government did not grant the fiscal package. The US economic slump has done what the BPO sector has been trying to do for years lower the attrition rate. From 3040 per cent attrition rate in the beginning of this year, the number has come down to 15 to 20 per cent. The industry experts are of the opinion that the companies are most likely not to miss this chance in rationalizing the salaries of the BPO employees. Genpact, one of the largest BPOs of the country, reported an attrition rate of about 26 per cent for the first nine months of the year 2008 as against the 30 per cent in the same quarter in 2007. Whether it is Satyam or Cbay the economic downturn has slowed down attrition rate at least by 15 per cent. Infosys BPO has also seen a lower attrition rate for the last few months. However, the company has no plans for job cuts with the slump in US. What is certain is that the salary of this sector will be rationalized, not only for entry level but also for the middle and senior level. The drop in salary is expected to be over 5 per cent. Further, it is implied that the increase in salary will depend on productivity. There will be a fixed salary; the change will only be in variable pay. The Business Process Outsourcing sector has thus taken many measures to survive this economic low tide. The sector is struggling to cope with the financial downturn, but any further addition to this might prove fatal for this industry.