Recruitment & Staffing Industry

The future of -

Executive Summary

The Indian Recruitment sector is pitched at being an

industry worth Rs 2000 crores in 2010.

The highest grosser is the consultants in IT and

Financial Services.

Annual salary increment in the year gone by has been

to the tune of 30-35 percent, something that even

developed nations are keen to achieve.

Staffing demand has been on the rise in almost all

sectors, especially in banking, insurance, IT, telecom,

retail and financial services industry.

Overall

As of today, ‘RECRUITMENT’ is the most vibrant

sector with recruiters being able to earn up to 150

% of their salary in incentives alone.

The human resource industry in India has grown at

a compounded annual growth rate of 21% over the

past four years and is pegged to be around Rs

22,800 crore, according to a report by Executive

Recruiters Association & Ernst & Young.

Top Adviser views

"The Indian economic, social and cultural landscape is in

the middle of unprecedented change. The need for

solutions for complex problems of growth, innovation,

and professionalization is driving the opportunity for the

HR solutions industry in a way that has never been seen

before," says Amit Zutshi, Partner in Ernst &

Young's Transaction Advisory Services practice.

Temporary hiring has a 73% market share while

permanent staffing has 13% of the pie, says the report.

Views by CEO

Kamal Karanth, CEO at Kelly Services India

highlights that staffing presents huge

opportunities for the industry. In India there are 13

lacs temp workers presently in the organized

sector and estimates by the Indian Staffing

Federation (ISF) project that the demand will

swell to 90 lacs, across the next 10 years.

Views by CEO

Balaji, MD and CEO at Randstad India,

highlights that for global companies,

understanding the dynamics and

characteristics of the Indian market will be a

core challenge. Another core challenge for most

recruiting companies across 2013 will be low

operating margins.

Views by CEO

Ashok Reddy, CEO at Teamlease, highlights

that it will be essential to look at how to scale the

business and make the business independent of

one or two core people.

While the outlook for 2013 is expected to remain

fairly static, the recruiting industry will likely

witness changes in terms of consolidation,

new delivery models, and a greater reliance

on technology.

OPPORTUNITIES

Sizeable growth opportunities in staffing 

Specialized talent search in STEM,

Pharmaceuticals, and IT

Recruitment process outsourcing (RPO)

Managed solutions

THREATS

Longer recruiting cycles

Stagnant growth outlook

Question on ability to scale

Availability of talent pool

HR CONSULTINGExploring new frontiers of value delivery

Consulting services in India comprise strategy consultants, niche

boutique consultants, recruitment consultants, business

consultants, IP or knowledge consultants, leadership

consultants, and system integrators.

Sankar Ramamurthy, Executive Director at PWHC, is optimistic that

the outlook for consulting service will be positive in 2013.

He highlights that some services like compensation, evaluation, and

recruitment will be evergreen.

People- based services and analytics will likely come up in a big way.

There will likely be high demand for value-based services including

learning solutions, social media services for recruiting and branding,

and performance management.

OPPORTUNITIES

PSUs and homegrown companies

SMEs and Indian multinationals

Consolidation in the market

Analytics and people-based services

THREATS

Relative low maturity compared to other

markets

Dearth of quality talent

Demand side cost pressures

Future prospects

The future looks extremely promising as the recruitment

industry heats up again.

The global markets have recovered from the pangs of recession,

customer spends are comparatively increased and a general

positive outlook has been arisen in the business sector this year.

The changes have started getting visible in the IT industry with

increase in employment opportunities.

Increasing job opportunities can create a strong foundation for

the economy and thereby overall growth of a country can be

achieved.

Let us go for growth!

Thank you