| Summary: | This paper is based on an empirical study of five foreign MNC BPO firms operating in India, ranked among the top 100 by the International Association of Outsourcing Professionals (IAOP) for the year 2009. The data was collected using quantitative methods from 163 employees constituting 1% of the population under study. The level of satisfaction among the respondents towards the performance appraisal system is at 69.94 per cent. Regression analysis, using a significance level of 5 per cent, shows that three of the variables used in the study are significantly influencing the satisfaction and all these three significant variables are positively associated with satisfaction and all other variables have emerged as the insignificant variables. All the variables used in our study collectively account for 42.6 per cent of the satisfaction. The factor analysis has identified four factors: the variables of factor one contribute 34.786 per cent variation, followed by 12.788 per cent, 11.961 per cent and 8.389 per cent variation being contributed by factor two, three and four respectively.
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