Niche skill-sets and Just-in-time requirements/ Key areas of work where contract workers aredeliveries are the immediate needs why deployed are Infrastructure management,companies are turning to their IT staffing Testing & Quality Assurance, New productpartners. In the future, on-time delivery and up- development and Application Support &scaling will become decisive reasons as well. Maintenance. The projects they work on fallBased on revenue generation, some of India's largely in domains like Mobile, Cloudtop staffing companies are SutraHR, ABC Computing, Automation, Machine Learning,Consultants, Adecco India, AON Hewitt Cyber Security, Internet of Things, Data Science(previously Hewitt Associates), CareerNet, & Analytics, Robotics, 3D Printing and Social.Global InnovSource, IKYA Human Capital, Kelly MOST SOUGHT AFTER LANGUAGES ANDServices India, ManpowerGroup India and SKILLS IN THE CURRENT DAY ARE JS.NETRandstad India. PHP, .NET-JAVA, IOSJAVA SCRIPT, ASP .NET,From the industry perspective, IT / ITES and .NET, JAVA -ANDROID.NET AND JAVA –UIHealthcare are the sectors with the maximum WHEN IT COMES TO .NET. IN SAP, THEY AREdemand for IT staffing. Start-ups and e- SAP IT NETWORKING, SAP HANA AND SAP UI.commerce, while currently at the bottom of that AND SAS, R, PYTHON AND SQL ARE IN-list, are also the fastest growing. DEMAND IN ANALYTICS. IT FLEXI-STAFFING MARKET IN INDIA ($ BILLION)54 3.78 4.27 2019E 3.37 Source: TBM Growth3 3.04 2020E strategy I execution I capital 50210 2017 2018E
FLEXI6.7 S T A F F I N G MARKET
In percentage THE AGE OF Source: FLEXI STAFFING TBM Growth IS TRULY UPON US. THE INDIAN IT FLEXI-STAFFING INDUSTRY IS WITNESSING HEALTHY FISCAL AND GROWTH ACTIVITY. IT HAS EXPERIENCED A MARKET PENETRATION OF 6.8% IN FY17, WITH TURNOVER TOUCHING USD 59 BILLION IN THE SAME PERIOD. The momentum is expected to sustain going forward, with TBM Growth’s experts pegging pace of growth for FY18 at 18%, and predicting turnover to cross USD 70 billion the coming financial year. IT FLEXI-STAFFING GROWTH FORECAST (SECTORWISE) IN FY-1820 17.3% 15.8% 12.7% 12.6% 11.5% 10.8% 14.1%1510050 IT/ITES BFSI Manufac- Chemical Oil Retail Healthcare Startup & Turing and Gas Ecommerce strategy I execution I capital 52
MYTHS ABOUT6.8 T E M P O R A R Y S T A F F I N G COMPANIES MYTHS ABOUT TEMPORARY STAFFING COMPANIES As with any new or emerging trend, the Temporary Staffing space, too, has its share of myths and illusions. On the one hand, this is causing businesses to hesitate when it comes to seeking help from staffing companies. On the other, it is keeping top temporary talent away from being considered for roles that are perfect for them.
HERE ARE SOME OFTHE MYTHS DOINGTHEIR ROUNDS INTHE TEMPORARYSTAFFING SPACE:Temporary staffing agencies fill only low level positions.Temporary staffing agency translates to low ROI.Temporary workers are unskilled.Temporary jobs are necessarily short-term / short-lived.Temporary employees are not entitled to benefits.Temporary workers are not protected by labor and wage laws.Temporary jobs make a resume look less attractive.Temporary workers lose jobswhen the employer faces growth struggles.LOW LEVEL POSITIONS GETTING A ARE ONLY FILLED PERMANENT ROLEby temporary staffing agencies is a very difficult task (for temp-to-hire)TEMPORARY WORKERS LOW RETURN ON INVESTMENT are unskilled on using a temporary staffing agency strategy I execution I capital 54
BOOMING FACTORS6.9 I N T E M P O R A R Y STAFFING BOOM FACTORS OF INDIAN TEMPORARY STAFFING DRIVING IT IS A MIX OF TANGIBLE FACTORS THAT, TOGETHER, CAN POWER COMPANIES AHEAD OF THE CURVE – FASTER THAN THE REST. There's of course the all-powerful technology angle, where emerging instruments like Artificial Intelligence and Learning Tools are revolutionizing everything from search to application tracking to candidate experience and beyond. But that's hardly all. Trends like Crowd-sourcing are enabling recruiters to land candidates via never-before channels. New techniques and approaches like Virtual Reality are not only helping companies attract top talent via smarter candidate screening, but enabling better role- fitments than ever. CONVENIENT NEW FEATURES LIKE ONLINE SOFT-SKILL ASSESSMENTS ARE HELPING THEM ACHIEVE SIMILARLY OPTIMIZED OUTCOMES.
THE INDIANSTAFFING SECTORIS AT INFLEXIONPOINT – AND ON THETHRESHOLD OF A BIGBOOM. CROWD AI AND MACHINE SOURCING LEARNING TOOLS RECRUITMENT FOR HIRING ONLINE SOFT CANDIDATE SKILL SCREENINGASSESSMENT & EMPLOYER BRANDING THROUGH VIRTUAL REALITYSource: strategy I execution I capital 56Indian Staffing Federation
7 KEY SEGMENTS CHALLENGES & SUCCESS FACTORS CHALLENGES With larger players re-positioning themselves for a bigger market pie and smaller ones bracing for a face-off, competition in the staffing terrain is heating up. Amongst the hurdles that players will need to cross are the ability to satisfy increasingly demanding clients, spotting dishonest approaches by candidates, staying up-to-speed with trends and best-practices, balancing costs and factoring in unplanned attrition that can affect productivity of their clients. SUCCESS FACTORS As a growing industry, though, the tailwinds of growth are stronger than the threats. Technology – be it social, AI or mobile - is disrupting the sector in a big way. Sophisticated Data & Analytics capabilities are helping staffing firms take smarter decisions. Mergers, acquisitions and alliances are helping firms re-position themselves better for oncoming opportunities. A spike in angel funders is injecting vital capital. And favourable government policies are removing knots and bottlenecks, paving the way for untrammelled growth.
CHALLENGES DRIVERS A INCREASED A TECHNOLOGY COMPETITION B DATA & B MATCHING ANALYTICS QUALITY C MERGERS & EXPECTATIONS ACQUISITIONS C APPLICANT D FUNDING DISHONESTY E FAVOURABLE D KEEPING UP WITH POLICIES TRENDS & PRACTISES E RISING COSTS F UNPLANNED ATTRITION strategy I execution I capital 58
7.1KEYTAKEWAYSGlobally, staffing firms have played a huge role in the Less legal hassles and paperwork giving organizationsemployment scenario - and in India alone, staffing firms even more reasons to turn to temporary teams.have generated more than 5 million jobs over the lastdecade. Last-minute solutions and boosted speed-to-hire are making recruiters and HR teams addicted to theTemporary staffing in India is growing at a healthy pace seasonal / temporary hiring model.of 25% CAGR, and is slated to touch 9 million workers(and represent 10% of organized workforce) in the Staffing firms will go from a 'provider of heads andcountry by 2025. hands' to becoming a strategic talent partner by helping businesses 'get things done'.High costs, inflexible arrangements and redundancy(due to technology) of permanent workers – along with An entire ecosystem will be created out of temporaryrise of outsourcing - are causing companies to focus on workers, making it easy and practical for businesses toa temporary workforce. find temporary workers anytime.In addition, new labor laws are boosting the adoption of Temporary models will enable better economies oftemporary workers. scale for companies in the long-run.Knowledgeable and efficient 'temporary candidates' are Temporary staffing is therefore promising a sustainableproving to be a viable substitute for permanent staff. way to drive prolonged business growth performance in times of uncertainty and change.Big cost savings are making temporary workers alucrative alternative for businesses not just over theshort-term, but the long run as well.
7.2 CONCLUSION BUSINESSES TODAY HAVE AN ALL-NEW EDGE. AND IT CAN BE SUMMED UP IN TWO WORDS: TEMPORARY STAFFING. No matter what the industry – e commerce, IT, telecom, healthcare, retail, trade & industrial, FMCG, hospitality, legal, textiles or administration – companies and teams are leveraging the power of Temporary or Contract Staffing as a strategic growth tool to leapfrog ahead.THE IDEA IS WORKING As a bridge between companies and talent,AT MANY LEVELS. staffing companies will have a more important role than ever to play. The good news forFor companies, the pot of gold comprises huge them? The game is now being played on asavings, anytime talent and reduced hassles. level field. That's right: With traditionalFor professionals, flexible employment, resume advantages like legacy, size and budgetsbuilding opportunities and greater work-life gradually moving out of the equation,balance are the standout incentives. And with everyone today has a fair shot at theowners of staffing companies expecting their humongous (and fast growing) staffing pie.firms to post fatter revenues faster, the futurepromises phenomenal growth for both big and For staffing service providers, the rules ofsmall players in the sector. engagement, and success, are simple: If you are creative enough to disrupt smarter, agile enough to respond faster and professional enough to deliver without excuses, you will score big wins. strategy I execution I capital 60
BUSINESSES CONSTANTLY RE- INVENT THEMSELVES. SOMETIMES TO SURVIVE, SOMETIMES TO OVERTAKE. SO WHAT HAPPENS WHEN ALONG COMES AN IDEA THAT LETS YO DO BOTH? THE SMART, GRAB IT WITH BOTH HANDS. Temporary or seasonal hiring may be a relatively recent trend, but it is already bei hailed as the ‘future of work’. And the sma are reaching out. Temporary employees are qualified, cost- effective and hit the ground running. By delivering long-term value, short-term workers are turning the tenets of business its head. It’s no co-incidence, therefore, that by 202 the global temporary staffing pie will hit U 185 billion in revenue. In India, the sector is growing at a blinding pace of 35% annually and will account for nearly 9 million worke the same time. Corporate leaderships, procurement head and HR teams are waking up to this newfound edge pretty fast. But there’s o final piece in riddle they still need to solv reap the benefits: How to choose the bes staffing vendor?Anubhav SaxenaExecutive Director
- HERE’S A THUMB RULE:O Make sure your staffing vendor is closelyG aligned to your needs. Ensure they are ‘smallOU and pliant’ enough to possess the kind of T agility imperative for on-demand, 11th hour response. The best staffing companies are ing resourceful with deep networks that ensure art, great role fitments. And not least, your staffing - partner needs to be driven by values like s on commitment, collaboration and transparency. 20, As an ahead-of-the-curve player in the space,USD we have been watching the rise and rise of the s temporary staffing market from the inside. y, We’ve been closely following the way it is ers in transforming brands and Houses. We’ve also ds been witnessing the challenges and one frustrations of recruitment and procurement ve to teams trying to get a better handle over the st situation, so that they can profit from it. LET THIS EXCLUSIVE REPORT BE A START. TO PERMANENT ANSWERS, NO MATTER WHICH BUSINESS YOU LEAD. Harshdeep Singh Kstorahtelgi y I execution I capital Partner - HR Staffing Solutions
TBM-TALENT ACTIVATING 5 DIMENSIONAL GROWTH PERFORMANCEWITH THE POWER OF TRANSFORMATIONAL HIRING AT SCALE talent hard to find
talent hard to findPOWER OF 5XD HIRINGRE-EXPERIENCE GROWTH WITH THEEXECUTIVE | RETAINED | TECHNOLOGY - IT | STAFFING | END-TO-END RPOHR PROGRAMS | PARTNER MANAGEMENT | EMPLOYEE ENGAGEMENTPERFORMANCE MANAGEMENT | RECRUITER BRANDING strategy I execution I capital 64
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