Indian Staffing Industry

Market Size

Rs. 26,650 Crore in CY14

Growth Rates

10-15% Annual Growth Rate

Segments

Temporary/Flexi Staffing: INR 19,900 Crore

Permanent Staffing: INR 3,250 Crore

Other Employment Services: INR 3,500 Crore

Major Client Industries

IT/ITeS

Retail

Public Admin & Education

Indian Staffing Industry

Indian Staffing Industry 2015

The Staffing Industry includes companies which list employment vacancies, place applicants in employment, supply temporary workforce and all other employment related services. Market size of the Indian staffing industry was INR 26,650 crore in 2014 and is growing between 10-15% year on year. [i]

The industry is broadly classified as:

Temporary/Flexi Staffing:

Firms which retain workers and supply temporary workforce to other companies for specific assignments. This is the largest segment with a market size of INR 19,900 crores which is 75% of the market. This is primarily because of pass through salary costs included in the revenue of such firms.

Permanent recruitment:

Sourcing, screening, and on-boarding of candidates from junior level to positions to CXO-level positions (CXO level hiring is called Search). The industry forms about 12% market with a size of INR 3,250 crores. It includes only the net fees from each successful referral/hire.

Other Employment Services:

Market size of other employment services is at INR 3,500 crores which is 13% of the overall market. Other categories primarily include

-        Payroll administration

-        Recruitment process outsourcing

-        HR management and consulting

-        Employment training

-        Online job portals

Top Staffing Companies in India[ii]

Company name

Primary Services

Sales (2012)

Adecco

Permanent recruitment

1,469 Cr

Manpower

Permanent recruitment

646 Cr

Ikya

Permanent recruitment

910 Cr

Global Innovsource Solutions

Permanent recruitment

529 Cr

Genius Consultants

Temporary recruitment

330 Cr

Allegis

Temporary recruitment

175 Cr

ABC Consultants

Permanent recruitment

87 Cr

Team Lease

Temporary recruitment

1,312 Cr

Randstad

Permanent Recruitment

1,161 Cr

Info edge [iii]

 Online job portals

304 Cr

 

Staffing Industry Private equity and M&A deals[iv]

Year

Acquirer

Target

Target/Transaction - Note

Type

2013

Thomas Cook (India) Limited

Ikya Human Capital Solutions

HR services, IT services, engineering services and facility management services.

M&A

2014

Outsourcing Inc

Alp Consulting

Leading Payroll services provider India to outsource HR payroll process.

M&A

2014

Recruit Holdings

NuGrid Consulting, Stanton Chase and Orane Consultants

NuGrid - domestic executive search firm,

SC - executive search consultants

OC - leading SAP consulting firm based

M&A

2011

Deberry Ventures

CandyDate Jobs

India's best private human resource consultancy

PE

2011

ICICI Ventures

Team : Lease

India’s largest temporary staffing company

PE

2011

PeopleStrong

Summit HR India

Comprehensive HR and Recruitment Process Outsourcing

M&A

2011

Lumis Partners

PeopleStrong

Leading Multi-process Human Resource Outsourcing solution

PE

2011

Manpower

WDC

IT services and professional resourcing company.

M&A

2010

Ikya

Magna

Provider of technology staff augmentation & solutions

M&A

2010

Team : Lease

IIJT

IIJT is a vocational training provider with a network of over 250 centres

M&A

2010

Randstad

Mafoi

Managed payroll services and social benefits administration

M&A

2009

Ikya

Coachieve

Statutory Compliance Management, Payroll Management, On Cloud– HRIS

M&A

2009

AAA Ventures

PeopleStrong

Leading Multi-process Human Resource Outsourcing solution

PE

2009

Gaja Capital Advisors

Team : Lease

India’s largest temporary staffing

PE

 

Listed Staffing Companies

Team Lease[v]

IPO

150 Crore (Looking to raise)

Ikya Human Capital Solutions[vi]

IPO

1300 Crore (Looking to raise)

Info Edge India Ltd

Listed

791 Crore (EV)

 

Indian Staffing Industry Facts

  • India has one of the largest flexible staffing workforce numbers in the world, next only to China and the US.[vii]
  • The government employs a temporary workforce of about 12.3 million[viii]
  • Flexi staffing market is poised to grow 10% to 15% year-on-year
  • The retail sector is expected to witness growth to the tune of 10% to 12% per annum, making it the most lucrative option for a massive growth in flexible staffing.
  • The penetration of contract staff in the IT and [IT-enabled-Services] industry is also likely to increase from 10% to 20% in the next few years.
  • According to the Indian Staffing Federation, there are at present 1.3 million temporary workers in the organised sector, which is likely to increase to 9 million workers in the next 10 years.[ix]

Staffing Industry Trends

  • Virtual talent marketplaces where automated process  are used to rank and scout for fresh talent are proving to be disrupting the staffing industry[x]
  • Social recruiting is now the norm — 93% of recruiters use or plan to use social to support their recruiting efforts. [xi]
  • Temporary or contract-based work is on the rise as many of the top talents are taking up freelancing or on contract jobs, in this process, staffing firms will play a pivotal role in easing the relationship between freelancers and their clients.[xii]
  • Training is the starting point for developing a temporary work-force. A company with training facilities has an edge in terms of an employment-ready and local temporary workforce.

Target industries for Staffing Businesses

The major industries being served by Staffing industry include:

  • IT/ITES
  • Retail Industry
  • Public Administration & Education sector[xiii]


[i] http://www.business-standard.com/article/pti-stories/flexi-staffing-holds-the-future-of-indian-staffing-industry-114022100806_1.html

[ii] http://www.business-standard.com/article/pti-stories/flexi-staffing-holds-the-future-of-indian-staffing-industry-114022100806_1.html

[iii] http://www.infoedge.in/pdfs/SummaryFinancials.pdf

[iv] http://www.ey.com/Publication/vwLUAssets/Human-resource-solution-industry/$FILE/Human-resource-solution-industry.pdf

[v] http://www.moneycontrol.com/news/ipo-news/teamlease-services-files-ipo-paperssebi_3062881.html%20Also,%20figures%20taken%20from%20TeamLease%20Draft%20Red%20herring%20Prospectus

[vi] http://economictimes.indiatimes.com/markets/ipos/fpos/staffing-firms-ikya-teamlease-pursuing-ipos-sources/articleshow/45871050.cms

[vii] http://www.staffingindustry.com/row/Research-Publications/Daily-News/India-Staffing-market-set-to-become-world-s-largest-says-Randstad-s-regional-CEO-33917

[viii] http://www.thehindubusinessline.com/opinion/the-dawn-of-the-flexible-workforce-era/article7159155.ece

[ix] http://www.business-standard.com/article/pti-stories/flexi-staffing-holds-the-future-of-indian-staffing-industry-114022100806_1.html

[x] https://www.jobvite.com/wp-content/uploads/2014/10/Jobvite_SocialRecruiting_Survey2014.pdf

[xi] https://www.jobvite.com/wp-content/uploads/2014/10/Jobvite_SocialRecruiting_Survey2014.pdf

[xii] http://www.zenithtalent.com/recruiting-and-staffing-blog/2014-top-10-trends-in-the-staffing-industry

[xiii] http://indianstaffingfederation.org/ISF_Newletter/NewsLetter_Jul2014/index.html