
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