SMEs see high attrition due to Re rise
New Delhi: Small and medium enterprises are witnessing a large scale attrition as the rising value of rupee has impacted margins of these units, particularly in the H2 of 2007, Assocham said. Paying capacities of SMEs to employees have been eroded due to rupee rise, which shrunk their margins and affected manufacturing. “Attrition rate, which was more prevalent in ITeS, BPO and the services sector during the first half of 2007, is now visible in SMEs as these succumbed to pressures arising out of rupee rise as also slowdown in core sector output,” Assocham president Venugopal Dhoot said.