This is largely attributed to the change in the mindset of large Indian companies in wow ways: 1 . 2. Companies have started increasingly engaging consultants to meet their HRS requirements on account of the growing complexity of doing business and talent challenges. They are opting for a temporary staff model to have smaller bench strength to withstand the global economic crisis. Given this transformation in customer segments, the industry is emerging as more than Just a vendor in clients’ growth plans. The present HRS marketplace in India has some individual freelancers, start-ups, small and medium players, as well as large
Indian companies and Macs. The size of this space is expected to be INANER billion in FYI and has grown at a CARR of 21% between IFFY and FYI 1. The industry can be broadly divided into permanent recruitment with a market size of INNER-25 billion, temporary recruitment with a market size of INNER 167-170 billion and other segments with a market size of INNER 33-38 ban The strong growth witnessed by the sector has brought a combination of opportunities as well as challenges. Permanent recruitment has grown on the back of growth in key customer industries, with large
Macs entering the Indian market and expanding their presence, as well as the emergence of new industries. However, permanent recruitment companies face challenges in the form of high attrition and competition from online portals. Temporary recruitment companies are growing with organizations that are gradually increasing their share of temporary staff in their total workforce to withstand the economic downturn -? recognizing the merits of having temporary staff. However, such companies face high attrition rates with clients absorbing temporary staff, reassure on their working capital and compliance with laws applicable to permanent staff.
HRS solutions is a highly competitive and fragmented industry that is poised for enormous growth in the next 10 years as companies increase their investment in their HRS infrastructure. Furthermore, changing market dynamics and global competitive pressures has resulted in business becoming more complex, making companies realize the importance of having the right employees undertaking complex tasks and outsourcing non-core activities. Those that were earlier reluctant organizations’ growth strategy. 2
