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Indian Recruitment Industry Analysis
              [2012-17]
Executive Summary

Human resource is the most precious resource for any organization. Recruitment of right
person on the board of a company is indispensable for success of the organization. Human
resources solution providers consist of dedicated team of experts which provides its clients
with workforce solutions like hiring right candidate (temporary and permanent nature) to
streamline the human resource processes at the clients end. Staffing industry works in an
increasingly dynamic business environment today and has seen utmost transition in recent
years. It has emerged its status from only “replacing absentee workers” to become
“strategic partner” for its clients by providing entire gamut of employment solutions like
providing corporate training, pay-roll processing, recruitment process outsourcing, etc.

The staffing industry in India is highly fragmented and provides services in varied streams
such as Finance, Sales, Engineering, Information Technology and Management. Recent
developments on the economic front like opening up of various segments like retails,
aviation, etc. for FDI is also a boost for the segment as this will lead to increase in hiring
activity. Growth economics shown by India has also attracted large MNCs to set their foot in
the nation and ride the growth tide.

The recruitment industry in itself plays a vital role in the economic development of the
countries worldwide as it positively affects efficiency of client’s activities by taking care of its
non-core HR activities and providing it with right manpower. It helps organizations in finding
right people, for the right positions at the right time and location.

With increasing competition in the landscape the importance of this industry has increased
manifold. Like any other industry, staffing industry is also not immune to changes taking
place in external environment. Recruitment activity slows down in the case of slow economic
growth. Some of the challenges that the industry faces are discrepancies due to absence of
regulatory body and the industry being primarily unorganized.
HR Solutions Industry : Overview
Man power recruitment or supply agency includes any person engaged in providing
any service, directly or indirectly, in any manner for recruitment or supply of
manpower,     temporarily      or     otherwise,  to    any    other    person.

  Market Size of HR Solutions Industry in   HR Solutions Industry in India, Market Size
     India, FY08-FY11 (US$ Billion)         Forecast, By Value, FY12-FY18 (US$ Billion)




                                             FY12   FY13   FY14   FY15   FY16   FY17   FY18
     FY08     FY09      FY10     FY11*




• The industry grew at a CAGR of ………% during the period FY08-FY11.
• Market size of HR solutions industry in FY18 is expected to reach to US$ ………..
  billion from US$ ……… billion in FY12 by growing at a CAGR of……%.
• Growth in the industry is attributed to shift towards …………………………………………….
HR Solutions Industry Structure


                            Human Resources solution
                                   industry



     Permanent                      Temporary
                                                                       Others
     recruitment                   recruitment



                                                                       Online job
                                 Professional              RPO
                                                                        portal
       Search                      staffing
                                                        Employmen         HR
                                   General               t training    consulting
     Recruitment
                                   staffing
                                                             Payroll processing
                                                              and compliance




• Permanent recruitment and temporary recruitment accounts for ……….of the total
  market
• Latter accounts for ……………of the market as it comprises of hefty salary costs
Market Trends

    Rise in Contract Hiring                 Mergers and Acquisitions

•    Cost savings on training as contract   • Increase in the trend of private equity
     workers are on the ………………..party         transaction as a route of expansion
     staffing organization                    among HR service providers.
•    Small        and        medium-sized   • Many     international   players   are
     organizations, specifically from the     foraying into the Indian market by
     IT     industry,    are    employing     …………………………domestic companies
     temporary workers                        to capture the market share.

Increasing Use of Social Media              Rising Popularity of Recruitment
                                            Portals
• Use of social media channels (like
  linkedin, facebook, twitter) to screen     Recruitment portals have emerged as
  potential hires as it offers recruiting     the most popular source for hiring
  managers a larger applicant pool………         resources, followed by references,
                                              and recruitment agencies

                             Outsourcing HR services

 RPO (recruitment process outsourcing) refers to outsourcing of recruitment
  process of organizations by transferring all or some part of the recruitment
  process to a third party
 Outsourcing of recruitment process helps to save organizations’ recruitment costs
  up to 40%

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Indian recruitment industry analysis

  • 1. Indian Recruitment Industry Analysis [2012-17]
  • 2. Executive Summary Human resource is the most precious resource for any organization. Recruitment of right person on the board of a company is indispensable for success of the organization. Human resources solution providers consist of dedicated team of experts which provides its clients with workforce solutions like hiring right candidate (temporary and permanent nature) to streamline the human resource processes at the clients end. Staffing industry works in an increasingly dynamic business environment today and has seen utmost transition in recent years. It has emerged its status from only “replacing absentee workers” to become “strategic partner” for its clients by providing entire gamut of employment solutions like providing corporate training, pay-roll processing, recruitment process outsourcing, etc. The staffing industry in India is highly fragmented and provides services in varied streams such as Finance, Sales, Engineering, Information Technology and Management. Recent developments on the economic front like opening up of various segments like retails, aviation, etc. for FDI is also a boost for the segment as this will lead to increase in hiring activity. Growth economics shown by India has also attracted large MNCs to set their foot in the nation and ride the growth tide. The recruitment industry in itself plays a vital role in the economic development of the countries worldwide as it positively affects efficiency of client’s activities by taking care of its non-core HR activities and providing it with right manpower. It helps organizations in finding right people, for the right positions at the right time and location. With increasing competition in the landscape the importance of this industry has increased manifold. Like any other industry, staffing industry is also not immune to changes taking place in external environment. Recruitment activity slows down in the case of slow economic growth. Some of the challenges that the industry faces are discrepancies due to absence of regulatory body and the industry being primarily unorganized.
  • 3. HR Solutions Industry : Overview Man power recruitment or supply agency includes any person engaged in providing any service, directly or indirectly, in any manner for recruitment or supply of manpower, temporarily or otherwise, to any other person. Market Size of HR Solutions Industry in HR Solutions Industry in India, Market Size India, FY08-FY11 (US$ Billion) Forecast, By Value, FY12-FY18 (US$ Billion) FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY08 FY09 FY10 FY11* • The industry grew at a CAGR of ………% during the period FY08-FY11. • Market size of HR solutions industry in FY18 is expected to reach to US$ ……….. billion from US$ ……… billion in FY12 by growing at a CAGR of……%. • Growth in the industry is attributed to shift towards …………………………………………….
  • 4. HR Solutions Industry Structure Human Resources solution industry Permanent Temporary Others recruitment recruitment Online job Professional RPO portal Search staffing Employmen HR General t training consulting Recruitment staffing Payroll processing and compliance • Permanent recruitment and temporary recruitment accounts for ……….of the total market • Latter accounts for ……………of the market as it comprises of hefty salary costs
  • 5. Market Trends Rise in Contract Hiring Mergers and Acquisitions • Cost savings on training as contract • Increase in the trend of private equity workers are on the ………………..party transaction as a route of expansion staffing organization among HR service providers. • Small and medium-sized • Many international players are organizations, specifically from the foraying into the Indian market by IT industry, are employing …………………………domestic companies temporary workers to capture the market share. Increasing Use of Social Media Rising Popularity of Recruitment Portals • Use of social media channels (like linkedin, facebook, twitter) to screen  Recruitment portals have emerged as potential hires as it offers recruiting the most popular source for hiring managers a larger applicant pool……… resources, followed by references, and recruitment agencies Outsourcing HR services  RPO (recruitment process outsourcing) refers to outsourcing of recruitment process of organizations by transferring all or some part of the recruitment process to a third party  Outsourcing of recruitment process helps to save organizations’ recruitment costs up to 40%