To Örebro University

Background: Employee turnover in GSD is an extremely important issue, especially in Western companies offshoring to emerging nations. 

Aims: In this case study we investigated an offshore vendor company and in particular whether the employees’ retention is related with their experience. Moreover, we studied whether we can identify a threshold associated with the employees’ tendency to leave the particular company. 

Method: We used a case study, applied and presented descriptive statistics, contingency tables, results from Chi-Square test of association and post hoc tests. 

Results: The emerging results showed that employee retention and company experience are associated. In particular, almost 90% of the employees are leaving the company within the first year, where the percentage within the second year is 50-50%. Thus, there is an indication that the 2 years’ time is the retention threshold for the investigated offshore vendor company. 

Conclusions: The results are preliminary and lead us to the need for building a prediction model which should include more inherent characteristics of the projects to aid the companies avoiding massive turnover waves.