Burgeoning Growth of Staffing

“It doesn’t make sense to hire smart people and then tell them what to do; we hire smart people so they can tell us what to do”- Steve Jobs

Over the past decade the demand for quality IT candidates have grown tremendously as technology has emerged as a fundamental component to a business’s success.

Highly skilled industries, such as IT and engineering, have significantly increased the size and scope of IT staffing to meet the cyclical needs of businesses. Nowadays, technology professionals view smaller assignments as flexibility and opportunity rather than insecurity. Major brands are adopting contractual hiring models for a trial-run with their talent before permanent onboarding. What was earlier an MNC driver hiring model is now largely driven by major Indian enterprises. Like most Japanese companies, large Indian corporations have built their captive staffing firms solely for their own utilization. This has also influenced the overall growth in the size and scope of IT staffing.

Nonetheless, staffing in India is a huge industry. There are approximately 23,500 recruitment firms in India. And more than twelve staffing companies produce a turnover of more than ₹1000 crores a couple of these companies are even closer to the ₹5000 crore turnover mark. These staffing juggernauts are increasingly spreading awareness about the advantages of staffing and recruiting to large organizations. All these features are propelling India towards the $20 billion staffing mark to overtake Netherlands currently the sixth-largest market by 2025.

The market size of the staffing in India stands at $6 billion, which is the thirteenth-largest in the world and is consistently growing at the pace of more than 15 percent annually. At this pace, the Indian staffing industry is poised to become the sixth-largest in the world by 2025. What adds to this burgeoning growth rate is the fact that the global staffing industry has already fully developed and the rate has flattened out at 1 to 2 percent. Plus, factors such as GST and demonetization have pushed for the formalization of jobs at a very fast rate. Additionally, the company’s appetite for immediate hiring of employees has also increased remarkably.

As a result, the rapid growth in allied industries has fueled the demand for a large contractual workforce. All these aspects will be critical to the future growth of the staffing business.