Attrition signifies not only the loss of talent but also includes the cost of training new recruits. BPO firms need to rethink the ways they manage their people. It would be useful to take up studies that explore the present HR system in the BPO firms. This study provides handful information of the existing HR system in the BPOs, the challenges and the reasons for existence of problems like attrition, which might help the HR managers in their future course of action.