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Reflecting a positive hiring outlook, the organized sector in India is expected to create about 1.6 million new jobs in the year 2012, as per the latest results of a survey from HR firm Ma Foi Randstad..

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  1. 1. Ma Foi Randstad2012 Employment Trends Survey
  2. 2. in this report...Indian Economy – Improved outlook with pockets of concern?? methodologyData and? of employment generation in different sectorsEstimates ? Financial Services and Insurance Banking, Education, Training and Consultancy ? Energy ? Healthcare ? Hospitality ? Information Technology & Information Technology Enabled Services ? Manufacturing - Machinery and Equipment ? Manufacturing - Non-Machinery Products ? Media and Entertainment ? Pharma ? Real Estate and Construction ? Trade including Consumer, Retail and Services ? Transport, Storage and Communication ?Concluding Remarks?Appendix? A1: Expected Increase in Employment across Different Sectors A2: Expected Increase in Salary across Different Sectors - Lateral Job Shift A3: Composition of New Hires by Experience A4: Composition of New Hires by Functional Areas A5: Share of Different Hiring Sources for New Hires A6: City-wise Growth in Employment A7: City-wise Likely Increase in Salary - Lateral Job Shift A8 : City-wise Share of Different Experience Brackets amongst New Hires A9: City-wise Share of Different Functional Areas amongst New HiresThe Ma Foi Randstad Employment Trends Survey (MEtS), conducted by Ma Foi Randstad - India’s No. 1 Integrated HR services company, is astudy on the Indian employment trends and opportunities. Starting from November 2004 till 2008, MEtS was conducted once a year.Considering several shifts in employment dynamics even within a year’s time, MEtS was converted into a quarterly survey from 2010 tocapture the changes in employment scenario in India from one quarter to another.The primary objective of this employment survey is to understand the employment trends in the organized sector on a quarterly basis. Thepresent survey captures the employment situation in the organized sector during the fourth quarter of Calendar Year 2011 (from October toDecember 2011) and the likely scenario in the first quarter of the Calendar Year 2012 (January to March 2012). The study results are basedon a survey in December 2011 of 639 sample companies spread across 13 different sectors. The feedback was gathered from the top HRpersonnel or top management of the companies, who could share valuable insights on employment related issues. The major focus of thesurvey is to estimate the changes in employment scenario across sectors and space. The other issues highlighted in the survey are changes insalary in case of lateral hiring, recruitments for different experience categories and hiring for different functional roles.The report is presented in four sections. The first section (Section A) discusses the recent trends and an overall view of the Indian Economy. Itis followed by Section B which provides insights about the data and methodological aspects of the study. Section C presents a picture of thechanging pattern of employment in different sectors of the economy. A snapshot of the changing scenario in 8 selected cities is also given inthis section. The final section (Section D) concludes the study highlighting key issues.
  3. 3. Indian Economyimproved outlookwith pockets of concernAccording to Prime Minister Manmohan Singh, the Indian On the back of the improving inflation scenario, RBI has alsoeconomy is expected to grow at around 7% in the financial indicated a halt in the repo rate increase. It last raised theyear 2011-12, lower than the December projection of 7.5%. repo rate by 25 basis points in October 2011 to 8.50%.According to Mr. Montek Singh Ahluwalia, Deputy Over the previous 9 months it had raised the rate by 200Chairman, Planning Commission, even though the 12th plan basis points, starting from 6.25% at beginning of the year.target annual growth rate of 9% is still feasible, it is now If the declining trend of inflation continues, RBI is expectedmore difficult to achieve than six months ago. to start reducing the interest rate beginning Q1 of FY 2012- 13. Credit Suisse expects a 125 basis points decline in repoThe Gross Domestic Product (GDP) of India grew by 7.7% in rate over the FY 2012-13.Q1, 2011-12 period, as compared to 8.8% growth rate forQ1, 2010-11. The year on year growth rate fell further to In contrast to the declining trend in food inflation, the fuel6.9% in Q2. The sectors that did well in Q2 of 2011-12 over prices are still holding out. In the week ending Decembercorresponding period of the previous year are electricity, gas 24, fuel inflation marginally accelerated to 14.6% asand water supply (9.8%), trade, hotels, transport and compared to 14.4% a week earlier. On the demand side,communication (9.9%) and financial sector (including real the growth story of the United States, Europe and otherestate) (10.5%). Construction sector grew at 4.3%, major economies are expected to remain weak, dampeningfollowed by agriculture at 3.2% and manufacturing at their oil consumption. U.S. dollar is also likely to continue itsmeasly 2.7%. strong trend, helping to keep the price in check. However, there is rising tension between US/Europe and Iran in recentThe major drag for the economy was the decline in mining times. United States and Europe have been campaigning tosector GDP by 2.9% in Q2, along with the significant fall in choke off Irans oil export, and isolating its central bank.the growth of manufacturing sector. The IIP data for Q2, Although US and Europe have been talking with alternative2011-12 showed a decline by 2.7% for the mining industry suppliers, especially the other Gulf producers, doubts haveoutput, which was much lower than the 6.3% growth been raised regarding their capacity to completely replaceregistered in Q2, 2010-11. Manufacturing output grew only Irans supply on a sustained basis. This uncertainty has led toat 3.1%, which was again lesser than half the Q2, 2010-11 an increase in the oil prices, mainly due to supply concerns,growth rate of 7.4%. Electricity production did better in spite of absence of any spurt in demand.comparatively, growing at a much higher 10.5% in Q2 The adverse effect of rising fuel prices on Indian economy2011-12 vis-a-vis a low 2.1% in the corresponding quarter can be further exacerbated by the fall in the value of theof previous year. One significant related development on the Rupee. Indian Rupee was the worst performer in 2011policy front was the adoption of the New Manufacturing among Asian currencies, losing close to 20.6% against thePolicy on October 25, 2011. The New Policy envisages an U.S. dollar since August 2011. This was due to foreignincrease in the share of manufacturing in GDP, from 16% to investors pulling out of Asias third-largest economy on25% and creation of 100 million additional jobs in the worries over its large fiscal deficit, stubborn high inflationmanufacturing sector by 2022. The Policy also proposes to and slowing growth. According to Mr. Pranab Mukherjee,set up seven National Investment and Manufacturing Zones Finance Minister, the pressure on Rupee will continue untilwith single-window clearance and flexible labour laws. there is a suitable solution to the sovereign debt problem in Europe. According to research firm Macquarie, there is aEven though the overall year on year inflation remained high risk of Rupee depreciating further to 55-56 level against theat 9.11% for November 2011, the food inflation has US dollar in the near term, although a pull back is expectedsignificantly dropped over the last two months. For the week in the second half of this year. A weak rupee will exert anending December 24, food inflation came down to negative upward pressure on overall inflation by pushing up the cost3.4%, as prices of vegetables, onion, potato and wheat of imported items, and thereby partially offsetting arecorded a decline. This was the first time in six years that moderation in food prices.food inflation had shown a decline on an annual basis. Itremained on the negative zone for the subsequent threeweeks also. RBI expects inflation to moderate further toaround 7% level by March 2012.
  4. 4. The fall in inflation and interest rates may also be limited 238 billion to US$ 310 billion. This resulted in an increase indue to the rising fiscal deficit, which is a result of growth the trade deficit from US$ 93 billion to US$ 117 billion. Aslowdown affecting tax revenues and derailment of PSUdivestment as a result of depressed market conditions. TheCentral Government has been forced to increase itsborrowing for the FY 2011-12 by 22%, raising questionsabout its ability to restrict deficit within the target figure of4.6% of GDP. Most analysts expect Indias 2011/12 federalfiscal gap to be an almost 1 percentage point higher thanthe original target.Another important factor can be the de-leveraging riskemanating from crisis in the Euro zone. In the event ofworsening of the European crisis, the European banks mayrefuse to rollover or extend credit to Indian corporatehouses. In such a scenario, Indian banks will be required totake the loans on their books. According to the Bank ofInternational Settlements (BIS), European banks claimsagainst India stood at US$159 billion at the end of June2011. This accounts for almost 55% of the totalinternational claims (US$289 billion) on India. According tofinancial market experts, the process has already started tosome extent and has the potential to adversely affect thedomestic liquidity situation in the coming months.Cumulative value of exports for the period April-Novemberin FY 2011 -12 was US$ 193 billion against US$ 145 billionfor the same period in previous year, registering a growth of33.2%. Imports over this period grew by 30.2% from US$Expected Employment Increase in Different Sectors - Outlook 2012 Employment Expected Increase in Employment Expected Increase in percentageSectors December January - December January - March January - December January - March 2011 2012 2012 2012 2012Banking, Financial Services and Insurance 968,055 71,605 15,657 7.4 % 1.6 %Education, Training and Consultancy 9,886,593 87,290 23,815 0.9 % 0.2 %Energy 924,528 30,208 7,710 3.3 % 0.8 %Healthcare 3,621,177 273,571 72,473 7.6 % 2.0 %Hospitality 6,309,121 230,213 60,308 3.6 % 1.0 %Information Technology & Information Technology Enabled Services 2,102,421 227,328 54,926 10.8 % 2.6 %Manufacturing - Machinery and Equipment 1,190,736 59,180 12,732 5.0 % 1.1 %Manufacturing - Non-Machinery Products 4,662,741 163,075 40,245 3.5 % 0.9 %Media and Entertainment 1,482,898 162,264 43,474 10.9 % 2.9 %Pharma 335,455 59,957 13,642 17.9 % 4.1 %Real Estate and Construction 988,815 132,906 26,669 13.4 % 2.7 %Trade including Consumer, Retail and Services 693,534 54,230 13,832 7.8 % 2.0 %Transport, Storage and Communication 2,730,403 49,480 10,042 1.8 % 0.4 %
  5. 5. The Indian economy is expected to grow at around 7% inestimates of the financial year 2011-12, lower than the December projection of 7.8% to 8.0%. With some respite in foodemployment inflation, there is wide spread belief that the interest rate hikes have hit the ceiling and will begin a descent from April 2012 onwards. This may provide a respite to the badlygeneration in battered sectors of manufacturing, real estate, construction, automobile, etc.different sectors In terms of jobs created in Calendar Year 2011, Healthcare, Hospitality and IT took the top three places. In terms of y-o- y growth rate, the pride of place was taken by the Pharma sector. These four sectors are expected to repeat their chart topper performance in Calendar Year 2012 too. Two other sectors that will significantly add to the employment opportunities are Media & Entertainment and Manufacturing of Non-machinery products. Real Estate and Construction, which was expected to log a 16.8% growth rate in Calendar Year 2011, only managed to grow at 15.1%. The growth rate is expected to further decline in Calendar Year 2012 at 13.4%. However, this sector is likely to create more than a lakh new job opportunities in the current year. A summary of the employment generation scenario across 13 different sectors are presented below. It gives the estimated numbers of job created in Calendar Year 2011 in these sectors, as well as the likely additions in CY 2012. A comparison of Q4, CY 2011 against Q1, CY2012 numbers is also given in the following table. A detailed sectoral level analysis, highlighting some of the important developments which had a material impact on the job prospects in these sectors, is presented subsequently.Expected Employment Increase in Different Sectors - 2011 Employment Expected Estimated Expected Estimated Expected Estimated Expected EstimatedSectors Jan - Dec Jan - Dec Oct - Dec Oct - Dec Jan - Dec Jan - Dec Oct - Dec Oct - Dec December 2010 2011 2011 2011 2011 2011 2011 2011 2011Banking, Financial Services and Insurance 907,960 80,700 60,095 11,900 13,455 8.9% 6.6% 1.3% 1.4%Education, Training and Consultancy 9,794,024 107,500 92,569 20,700 25,793 1.1% 0.9% 0.2% 0.3%Energy 895,502 24,900 29,026 6,600 6,928 2.8% 3.2% 0.7% 0.8%Healthcare 3,377,657 248,500 243,520 58,700 68,077 7.4% 7.2% 1.7% 1.9%Hospitality 6,111,304 218,200 197,817 41,600 55,121 3.6% 3.2% 0.7% 0.9%Information Technology &Information Technology Enabled Services 1,918,865 183,000 183,556 41,600 45,821 9.5% 9.6% 2.1% 2.2%Manufacturing - Machinery and Equipment 1,134,788 68,400 55,948 14,000 12,336 6.0% 4.9% 1.2% 1.0%Manufacturing - Non-Machinery Products 4,507,967 223,400 154,774 38,300 36,941 5.0% 3.4% 0.8% 0.8%Media and Entertainment 1,356,296 126,100 126,602 32,800 38,998 9.3% 9.3% 2.3% 2.7%Pharma 284,351 49,400 51,104 12,800 13,855 17.4% 18.0% 4.1% 4.3%Real Estate and Construction 859,342 144,700 129,473 26,200 23,815 16.8% 15.1% 2.8% 2.5%Trade including Consumer, Retail and Services 652,786 38,600 40,748 9,900 12,334 5.9% 6.2% 1.5% 1.8%Transport, Storage and Communication 2,682,553 93,300 47,850 11,300 8,403 3.5% 1.8% 0.4% 0.3%
  6. 6. Banking, Financial composition of new hiresServices and Insurance 3%Between October and December 2011, the 30% 29%Banking, Financial Services and Insurancesector has added 13,455 jobs and is < 1 Yearexpected to add another 15,657 jobs over by experience 1 - 4 Years 5 - 10 yearsJanuary to March 2012. This sector is > 10 Yearsexpected to add 71,605 jobs in theCalendar Year 2012. 39%? moderation in inflation, the RBI has indicated a halt in itsWith thelong series of raises in repo rate. While it had increased repo rate by200 basis points over the first nine months of 2011, it raised the rateonly once by 25 basis points in the final quarter of Calendar Year2011. The rapid increase in the interest rate had a detrimental effecton the overall growth prospect in 2011, and subdued the 2% 12%employment situation. Sectors like real estate and auto industry alsoexperienced a slowdown in demand as a result of this.?growth as on December 16, 2011 dropped to its lowest levelCreditsince April 2010 (20 months) to below 18% (at 17.1%) because ofslowing economy as well as a high base effect (23.9% yoy growth in 41% Admin / Accountants etcDecember ‘10). Deposit accretion continues to be healthy at a yoy Core Activities includinggrowth rate of 44%. Most of the banks kept their deposit as well as Marketing and BDlending rates unchanged. by function Customer ServiceConcerns on asset quality continued to plague the banking system.?With completion of transition to system-based NPA recognition, most Senior ManagementPSU banks witnessed asset-quality stress. 11 out of 21 PSU banksreported more than a 20% increase in their net NPA levels in Q2 of 44%FY2012. The asset quality of the private banks, in contrast, remainedcomfortable apart from some concerns on the Micro FinanceInstitutions. With sectors such as infra, real estate and exportscontinuing to face macro headwinds, asset-quality concerns areexpected to linger.? recently issued draft guidelines for implementation of Basel-IIIRBI hadbanking norms in India. The new norms envisage that the equitycapital of a bank should not be less than 5.5% of its risk-weightedassets (RWAs). Tier 1 capital (equity and reserves) and total capitalmust be at least 7% and 9% of RWAs respectively. It had also 17%suggested setting up of a capital conservation buffer in the form of 22%common equity of 2.5% of RWAs. This will increase the capitalisationneeds of the Indian banks significantly.In an effort to further the goal of delivering financial services at? Campusaffordable costs to sections of disadvantaged and low income HR Agencysegments of the society, Government is exploring the possibilities of 4%tapping into the network of 1.55 lakh post offices. If implemented, by hiring sources Referralsthis will increase the reach of the banking network by three fold and Social Mediawill help to reach out to a huge population, which is still outside the 32%existing banking system. OthersIn a move that could benefit over 5 million unskilled and semi-skilled?overseas Indian workers, Government has cleared a proposal to set upa Pension and Life Insurance Fund (PLIF) in the Emigration Check 24%Required (ECR) countries.Economic slowdown, inflation, weak investment sentiment and?changed regulations for unit-linked insurance plans (ULIPs) sinceSeptember 2010 have led to a contraction in the premium collectedby the life insurance industry for the first time in last 10 years. Thetotal premium collected stood at Rs. 155,770 crore for the periodbetween April and November 2011 against Rs. 162,994 crorecollected over the same period in 2010-11. While the renewal Increase in Salarypremiums grew in April-November 2011, there was a significant Lateral Job Shiftdecline in the new premium collections.? set to increase the provisioning norms for the commercialIRDA isthird-party motor pool to 163-213 per cent from present 153 percent. This may lead to Rs 10,000 crore loss in the current financialyear for the 24 general insurers.As a consequence, employment in BFSI in 2011 grew at a lower than?expected rate. With the expected decrease in inflationary pressure andthe interest rates, business climate is likely to improve in 2012 ascompared to last year. Estimated Employment Estimated Employment Expected Employment Expected Employment September 2011 December 2011 March 2012 December 2012 11.7% 12.5% 954,600 968,055 983,712 1,039,659 Estimated increase Expected increase during Oct - Dec 2011 during Jan - Mar 2012Note: Employment numbers are given as round figures
  7. 7. Education, Training and composition of new hiresConsulting 4%Between October and December 2011, the 33% 25%Education, Training and Consultancy sectorhas added 25,793 jobs and is expected to < 1 Yearadd another 23,815 jobs over January to by experience 1 - 4 Years 5 - 10 yearsMarch 2012. This sector is expected to add > 10 Years87,290 jobs in the Calendar Year 2012.The Government of India aims to achieve 21% gross enrolment ratio? (GER) by the end of the Twelfth five year plan (2012-2017). 38%? implementation of the Right to Education Act, funds toWith theelementary education have seen a significant increase. Between 2007-08 and 2009-10, the elementary education budget increased from Rs.68,710 crore to Rs. 97,255 crore. However, as per a provisional reportof PAISA District Studies (Rural) 2011, a major share (78 %) of theeducation budget in India was spent on meeting teachers’ salary and 2% 9%management costs. Only around 14% and 1% was invested on 21%establishing school infrastructure and improving the quality ofeducation respectively.? this skewed expenditure pattern, the teacher to student ratioDespiteis very low across all levels. A recent task force of MHRD estimated Admin / Accountants etcthe lecturer-to-student ratio in the country at 1:20.9, against 1:13.5 Core Activities includingrecommended by the University Grants Commission (1:12 for Marketing and BDpostgraduate students and 1:15 for undergraduates). Nearly 100,000 by function Customer Serviceteachers will be required annually over the next decade to meetIndia’s burgeoning college education demand. Senior ManagementAccording to central government data, the 42 central universities,?considered to be key to the country’s university system, have nearlyone-third of their teaching posts vacant.? the top institutions like IISc, TIFR, BITS have already started 4Many of 67%years undergraduate programmes in science subjects. Many largeuniversities like the Delhi University are also exploring similarpossibilities. If implemented, this shall further increase demand forteaching faculty.According to a research note by Anand Rathi, seats available for?tertiary education in India are sufficient for just 12% of thepopulation that needs such education. 10%? to bridge the gap between industry requirements andIn ordermanpower availability, the Indian government has set a target to skill500 million people by 2022, in collaboration with 34 approvedtraining partners. It is looking towards creating a training capacity of 36%11.2 million per year. Campus?education is increasingly becoming a serious business in India.Sports HR AgencyThe US$ 38 billion sports education and management industry is by hiring sources Referralsbeing viewed as a great investment opportunity by entrepreneurs. 31%? report estimates private education sector alone to grow toA recent Social MediaUS$ 70 billion by 2013 and US$ 115 billion by 2018. Others? demand side looking buoyant, this sector will be a majorWith thecreator of job opportunities in the coming years. 2% 20% Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Expected Employment Expected Employment September 2011 December 2011 March 2012 December 2012 11.2% 11.5% 9,860,800 9,886,593 9,910,408 9,973,883 Estimated increase Expected increase during Oct - Dec 2011 during Jan - Mar 2012Note: Employment numbers are given as round figures
  8. 8. composition of new hiresEnergyBetween October and December 2011, the 3%Energy sector has added 6,928 jobs and is 25%expected to add another 7,710 jobs overJanuary to March 2012. This sector is < 1 Yearexpected to add 30,208 jobs in the 43% 1 - 4 Years by experienceCalendar Year 2012. 5 - 10 years > 10 YearsCoal production declined by 4.0% during April-November 2011-12? compared to 0.4% increase during the same period of 2010-11.?coal sector is hampered by primitive mining techniques and rifeIndias 29%with theft and corruption. The monopoly coal producer, state-controlled Coal India, has consistently missed production targets.Shoddy transport infrastructure, inadequate for moving coal from far-flung mines, compounds the problems.Coal India needs to mine new deposits to increase output. But most of?it lies under protected forests or conflict-ridden tribal lands.Government efforts to create an effective land-acquisition program 3%for such projects, including compensation for displaced people, 14%havent made much progress. 16%?Oil production registered a growth of 2.9% during April-CrudeNovember 2011-12 compared to its growth at 11.5% during thesame period of 2010-11. The Nov 2011 production figure was even Admin / Accountants etcmore dismal at negative 5.6% compared to 17.0% growth inNovember 2010. Core Activities including Marketing and BD? Gas production registered a negative growth of 8.5% duringNatural by functionApril- November 2011-12, compared to 19.9% growth during the Customer Servicesame period of 2010-11. Senior Management? to these three, electricity generation turned a stellarRelativeperformance. It grew by 14.1% in November 2011 compared to just3.5% growth in November 2010. During the April-November 2011-12 period, electricity generation grew by 9.3% against 4.6% growthduring the same period of previous financial year. 67%? the worlds fifth-largest electricity producer after the U.S.,India isChina, Japan and Russia. However, at 778.71 kilowatt hours a year,its per capita consumption is among the worlds lowest. Almost 300million people do not have access to electricity. The country needs ahuge jump in supply to sustain its rapid economic growth, fightpoverty and light the homes of those powerless millions. This providesthe sector with huge expansion opportunities. 12%More than half of Indias installed electricity-generating capacity of? 27%182 gigawatts is coal-based, and a large chunk of future powerprojects also will run on coal. By comparison, Chinas installedcapacity at the end of 2010 was 962 gigawatts, about 73% of it from Campuscoal. HR AgencyThe government and private industries are estimated to have invested?$100 billion since 2007 to add capacity. As more power plants come by hiring sources Referralsonline, coal shortages are expected to worsen. 29% Social MediaIn the face of huge unmet demand, the actual performance of this?sector is thus going to be determined by the supply side factors like 10% Otherscoal supply, land acquisition, discovery of new resources, investmentclimate, etc. 22% Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Expected Employment Expected Employment September 2011 December 2011 March 2012 December 2012 11.8% 12.2% 917,600 924,528 932,238 954,736 Estimated increase Expected increase during Oct - Dec 2011 during Jan - Mar 2012Note: Employment numbers are given as round figures
  9. 9. composition of new hiresHealthcareBetween October and December 2011, the 2%Healthcare sector has added 68,077 jobs 17%and is expected to add another 72,473jobs over January to March 2012. This 39% < 1 Yearsector is expected to add 273,571 jobs in 1 - 4 Years by experiencethe Calendar Year 2012. 5 - 10 years > 10 YearsHealthcare industry is the worlds largest industry with total revenues?of approx US$ 2.8 trillion. In India, Healthcare has emerged as one of 42%the largest service sectors with estimated revenue of around $ 30billion (5% of GDP). This is significantly lower than in the US, whereHealthcare spending is 15% of GDP. This indicates its importance as asector with significant employment generation capacity.? Indian population will reach 1.4 billion with about 45%By 2025,constituting urban adults (15 years+). To cater to this demographicchange, the Healthcare sector will have to be about $100 billion insize contributing nearly 8 to 10% of the projected GDP. 2%? the key drivers for Indian Healthcare sector is Medical Tourism.One of 16%World class treatment and benefits at a fraction of the cost (almost1/10th), with no waiting time for surgeries have been instrumental ina large number of foreign arrivals. This market is expected to grow to$2 billion by 2012 end. Admin / Accountants etc? key growth driver is Diagnostics & Pathology Services.Another 44%Outsourcing of Pathology and Laboratory tests by foreign hospital Core Activities including Marketing and BDchains (due to the highly favourable cost differential in India), is by functionexpected to grow with time. There are about 100,000 diagnostic Customer Servicelaboratories in India. This is about half the number of those in the US. Senior ManagementIndia’s diagnostics sector is expected to grow at about 20% to reachabout $2 billion in size by the end of 2013.With availability of a huge patient pool, clinical trial of drugs is? 39%possible in India at 60% of the cost abroad. This is expected to help inthe expansion of this sub-sector.Increased government expenditure on Healthcare, increasing coverage?of health insurance, low current coverage of Healthcare services, etc.will also significantly drive domestic demand. McKinsey-CII estimatesthe number of potential insurable lives at 315 million, with a potentialof US$ 7,700 million in health insurance premium by 2015.? the important bottlenecks for the sector is shortage in trainedOne ofmanpower. Wherein there is a surplus of about 500,000 qualified 14%practitioners in Indian system of medicine, shortage in allopathic 25%stream runs to around 700,000 doctors. To address this situation, theGovernment is working towards capacity expansion in medicalinstitutions. Government is also contemplating on allowing diaspora Campuspractitioners having Post Graduate degrees from USA, UK, Canada,Australia and New Zealand to practice in India. HR AgencyTelemedicine is another important area receiving a lot of attention. If? by hiring sources Referralsused effectively, it can multiply the utilization of scarce human 6% 32% Social Mediamedical personnel. It will open doors for the rural population toaccess quality healthcare and at the same time, significantly improve Othersthe productivity of medical personnel. 23% Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Expected Employment Expected Employment September 2011 December 2011 March 2012 December 2012 16.1% 16.0% 3,553,100 3,621,177 3,693,650 3,894,748 Estimated increase Expected increase during Oct - Dec 2011 during Jan - Mar 2012Note: Employment numbers are given as round figures
  10. 10. Hospitality composition of new hiresBetween October and December 2011, the 3%Hospitality sector has added 55,121 jobs 26%and is expected to add another 60,308 33%jobs over January to March 2012. This < 1 Yearsector is expected to add 230,213 jobs in 1 - 4 Years by experiencethe Calendar Year 2012. 5 - 10 years > 10 YearsThe Travel & Tourism Competitiveness Report 2011 estimates travel &?tourism industry of India to be worth US$ 42 billion in 2010 (3.1% ofGDP). The report also forecasts it to grow at an average rate of 7.8%over the period 2011-2020. 39%The report ranks India 68th globally and 12th in the Asia-pacific?region in terms of competitiveness. India is well placed in terms of itsnatural resources (8th) and cultural resources (24th). India alsoprovides quite a good air transport (ranked 39th), and reasonableground transport infrastructure (ranked 43rd). However, some aspectsof tourism infrastructure remain somewhat underdeveloped. There 1%are fewer hotel rooms per capita by international standard and also 13%low ATM penetration. Other areas of concern are the policyenvironment (ranked 128th), health and hygiene standards (112th)and the human resources base (96th).? Tourist Arrivals (FTAs) in India during 2011 was at 6.29Foreignmillion, registering a growth of 8.9% over 5.78 million in 2010. This 41% Admin / Accountants etcis, however, lower than the 11.8% growth registered during the year Core Activities including2010 over 2009. The growth rate of 8.9% in 2011 for India was Marketing and BD by functionbetter than UNWTO’s projected growth rate of 4% to 5% for the Customer Serviceworld in 2011 and 7% to 9% for the Asia-Pacific region. Senior Management? Exchange Earnings (FEE) from international inbound tourismForeignduring 2011 was at US$ 16564 million compared to US$ 14193 45%million in 2010, registering a 16.7% annual growth. The FEE hadgrown by 24.6% in the previous year.? sharp depreciation of the rupee in recent times, India hasWith theturned into an affordable destination for foreign visitors. On thenegative side, the world economic downturn may have a negativeeffect on foreign tourist flow. In order to attract more foreign visitors,India has extended the visa on arrival facility to 11 countries. At thesame time, with international travel becoming costlier for Indiantravellers, domestic demand for tourism is expected to increase in thecoming periods. 12%In contrast, lowering economic growth rate, high land prices, low?floor space index (FSI), plethora of taxes, low incentive fromgovernment and upcoming state elections can dampen the potential 30%of sector as an engine of growth. CampusRising business and leisure travel to smaller cities have increased?demand for quality hotel rooms in these cities. Hospitality chains are HR Agencyexpected to increase their presence in smaller cities to leverage this by hiring sources Referralsopportunity. 28%Many hospitality chains that were earlier focused only on the luxury? Social Mediasegment are now diversifying into new product segments, such as 4% Othersbudget hotels and serviced apartments, in order to reduce risks.Moreover, hotel chains are diversifying into niche segments such asmedi-cities, wildlife lodges and spas to establish additional revenue-generation streams. 27% Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Expected Employment Expected Employment September 2011 December 2011 March 2012 December 2012 14.9% 15.3% 6,254,000 6,309,121 6,369,429 6,539,334 Estimated increase Expected increase during Oct - Dec 2011 during Jan - Mar 2012Note: Employment numbers are given as round figures
  11. 11. composition of new hiresIT & ITeSInformation Technology and 7%Information Technology Enabled Services 25%Between October and December 2011, the 30%Information Technology & Information < 1 YearTechnology Enabled Services sector has by experience 1 - 4 Yearsadded 45,821 jobs and is expected to add 5 - 10 years > 10 Yearsanother 54,926 jobs over January to March2012. This sector is expected to add227,328 jobs in the Calendar Year 2012. 39%According to the latest report of the Internet and Mobile Association?of India (IAMAI), the number of internet users in India crossed the 100million mark in September 2011 and was expected to grow to 121million by December 2011. The broadband subscriber base stood at12.69 million in August 2011, according to data released by the 2% 6%Telecom Regulatory Authority of India (TRAI).India Information Technology Report 2011(Q3) by Business Monitor?International (BMI) predicts the Indian domestic market for IT productsand services to increase from US$ 19.7 billion in 2010 to US$ 41.2billion by 2015. As per the report, the Indian market for PCs 30% Admin / Accountants etc(including notebooks and accessories) and IT services were worth Core Activities includingaround US$ 8 billion and US$ 7.5 billion respectively in 2011. The Marketing and BDreport has estimated a compounded annual growth rate (CAGR) of 18 by functionper cent for Indian software market over the span of 2011-2015. Customer ServiceAccording to NASSCOM, the $88 billion Indian IT outsourcing industry? Senior Managementis projected to touch $225 billion mark by 2020. For the FY 2011-12,NASSCOM expects the IT services revenue growth rate to be around 62%15%.While the rupee depreciated by 21% in the August-December 2011?period, the IT sector’s net foreign exchange earnings touched US$14.48 billion. Total export from the sector was US$25.19 billionagainst forex spending of US$10.71 billion.The Indian e-commerce market grew by 47% in 2011 to become a?US$ 10 billion industry. It is expected to continue to expandexponentially with rising income, internet penetration and customersbecoming more and more comfortable with online transactions. Retail 14%brands are also expected to bring a great transformation in the online 18%space. Investors have poured around US$ 200 million into Indian e-commerce start-ups in the last couple of years.As a result of such growth, e-retailers, who want to focus on their? 8%core functionalities, are expected to outsource bulky back-end Campusoperations (such as customer care, order processing, invoice HR Agencyprocessing, finance and accounts). This may emerge as a substantialsource of revenue for BPOs. by hiring sources ReferralsThe demand for cloud computing services is expected to increase? Social Mediarapidly in India. There are already more than 50 cloud computing 29% Othersservice providers in the Indian market. Indian internet servicesproviders (ISPs) and data centre service providers are investing onapplications and bandwidth to support new cloud service offerings. 32%The coming time is also expected to see rapid proliferation of Apps,customer interactive innovations and machine to machine (M2M)technologies.According to the latest outlook by technology research firm Gartner,?worldwide IT spending will grow by 3.7% in 2012 to US$ 3.8 trillion.In 2011, the spending was at US$ 3.7 trillion, clocking a 6.9% growthover 2010 levels. Despite this reduced growth rate, the flow of workto low cost destinations like India may not be affected, even ifcompanies in US and Europe take recourse to increased offshoring to Increase in Salarycut costs and remain competitive. Lateral Job ShiftIn association with Rockefeller Foundation, NASSCOM Foundation is?working towards developing a new arm of the BPO industry called‘impact sourcing’, which essentially involves employing socio-economically disadvantaged people as principal workers. NASSCOMestimates that by 2020 the Indian IT-BPO industry can tap additionalrevenue worth US$75 billion through innovations such as this. Estimated Employment Estimated Employment Expected Employment Expected Employment September 2011 December 2011 March 2012 December 2012 15.9% 18.5% 2,056,600 2,102,421 2,157,347 2,329,749 Estimated increase Expected increase during Oct - Dec 2011 during Jan - Mar 2012Note: Employment numbers are given as round figures
  12. 12. Manufacturing composition of new hiresMachineries and Equipment 4%Between October and December 2011, the 20%Manufacturing - Machinery and Equipmentsector has added 12,336 jobs and is 34% < 1 Yearexpected to add another 12,732 jobs over by experience 1 - 4 YearsJanuary to March 2012. This sector is 5 - 10 yearsexpected to add 59,180 jobs in the > 10 YearsCalendar Year 2012. 42%The Index of Industrial production declined by 5.1% on y-o-y basis in?the month of October 2011. The manufacturing sector, which has aweightage of approx 75% in the index, performed worse at anegative growth rate of 6%. The cumulative growth for the April-October 2011 period less than halved to 3.7%. The growth rate ayear before, for the seven month period, was 9.4%.? goods sector showed a sharp decline on 25.5% in OctoberCapital 3% 9%2011 relative to the October 2010 production figures. The cumulativegrowth for the April-October 2011 period shows a decline of 0.3% 19%over the corresponding period on 2010.? machinery and apparatus production declined by aElectricalstupendous 58.8% in October 2011, when compared to October Admin / Accountants etc2010 production level. Both Machinery and Motor vehicles subsectors’ Core Activities including(October 2011) figures showed a decline (12.1% and 7.1% Marketing and BDrespectively) compared to October 2010. Cumulative (April-October by function Customer Service2011) y-o-y growth rates for these three subsectors were negative14.2%, negative 3.3% and 10.6% respectively. These subsectors had Senior Managementlogged growth rates of 3.3%, 34.1% and 36.3% respectively overthe corresponding 7 month period of last year.? in India grew by 30% in FY 2010-11. However, the growthCar salesrate was down to 2.3% in the first eight months of the FY 2011-12. 69%Major reasons cited for the downfall are high interest rates and risingfuel prices. The manufacturers are also grappling with increased inputcosts.? global headwinds, many economists say Indias troubles areDespitelargely homegrown, and a result of the ripple effect of the interestrate hikes. With the fiscal deficit figures way above budgetprojections, scope for any further stimulus is also very limited. Political 10%paralysis has also made it difficult to kickstart growth and investmentin the face of a plunging rupee and two years of near double-digitinflation. The long pending list includes land acquisition bill, tax 30%reform initiatives, new mining regulations and measures to allowgreater foreign investment in the defence and aviation sectors. CampusConsequently, employment opportunities grew at around 4.9% only,? 32% HR Agencylower than the expected 6% growth rate at the beginning of 2011.The salary hike for lateral shifting of jobs also declined from 13.0% in? by hiring sources ReferralsJuly-Sept ‘11 period to 10.4% in Oct-Dec ’11. Social Media Others 5% 23% Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Expected Employment Expected Employment September 2011 December 2011 March 2012 December 2012 10.4% 10.9% 1,178,400 1,190,736 1,203,468 1,249,916 Estimated increase Expected increase during Oct - Dec 2011 during Jan - Mar 2012Note: Employment numbers are given as round figures
  13. 13. Manufacturing composition of new hiresNon-machinery Manufacturing 1%Between October and December 2011, the 19% 27%Manufacturing - Non-Machinery Productssector has added 36,941 jobs and is < 1 Yearexpected to add another 40,245 jobs over by experience 1 - 4 YearsJanuary to March 2012. This sector is 5 - 10 yearsexpected to add 163,075 jobs in the > 10 YearsCalendar Year 2012. 54%The Indian Government has cleared a new manufacturing policy in?October 2011, which aims to create 100 million jobs and augmentthe share of manufacturing in Indias gross domestic product from theexisting 16% to 25% by 2022. The policy stresses on setting up moremanufacturing zones, industrial townships, and industrial hubs acrossthe country.The cumulative April to October 2011 growth in consumer goods,? 1% 12%consumer durables and consumer non-durables sectors were lower 18%compared to the previous year. The growth rates for 2011 were at3.7%, 4.5% and 2.9% respectively, a significant fall from 9.1%,15.7% and 3.9% last year.The sectors which did well are food and beverages, basic metals and? Admin / Accountants etcfabricated metals (excluding machinery and equipment). All these Core Activities includingthree logged a double digit growth over the first seven months of the Marketing and BDFY 2011-12. by function Customer ServiceThe sectors which did badly are tobacco, textiles, wood products,?chemical and rubber. All of them showed a decline in production over Senior Managementthe aforementioned period. The declines in textiles and chemical areparticularly worrying, considering their large share in the productionpie.?FMCG Companies, in the era of high inflation and increasingIndiancommodity prices, adopted the price hike strategy and effective cost 70%management. `Premiumization` was a key strategy employed duringthe year to tap the growing middle-class segment. Indian FMCGIndustry is currently estimated to be worth Rs 2,600 billion (4.8% ofGDP). According to FICCI, the market is expected to grow at a rate of10% over the next 10 years to reach a size of Rs 4,130 billion by2015. 9%According to the HSBC purchasing managers index (PMI), the?manufacturing sector index increased to 54.2 in December ’11 from51 in the November ‘11. Industry reports also mention improved 29%domestic and foreign demand, indicating improved growthmomentum. As per the HSBC PMI report, December ’11 saw sharp Campusrise in new order volumes, while the rate of growth of manufacturing HR Agencyoutput accelerated to highest levels in four months. Manufacturing 29%sector employment also rose in the month under review after four by hiring sources Referralsstraight months of showing job losses. But, the rate of input cost Social Mediainflation remained stubbornly above the long-run average. 3% OthersThe sluggish growth of the sector is reflected in the lower than?expected new job creation. New job creation numbers grew at 3.8%over the CY 2011 against January 2011 expectation of 5.0% growthin the year.? in salary over lateral shifts also declined in the October-The hike 31%December quarter to 13.5% from 14.2% clocked in the previousquarter. Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Expected Employment Expected Employment September 2011 December 2011 March 2012 December 2012 13.5% 14.5% 4,625,800 4,662,741 4,702,986 4,825,816 Estimated increase Expected increase during Oct - Dec 2011 during Jan - Mar 2012Note: Employment numbers are given as round figures
  14. 14. Media and Entertainment composition of new hiresBetween October and December 2011, the 7%Media and Entertainment sector has added 18%38,998 jobs and is expected to addanother 43,474 jobs over January to March 26% < 1 Year2012. This sector is expected to add 1 - 4 Years by experience162,264 jobs in the Calendar Year 2012. 5 - 10 years > 10 Years?increasing per capita income, growing middle class andIndiasworking population are generating huge domestic demand for leisureand entertainment. India has more than 600 television channels, 100 49%million pay-television households, 70,000 newspapers and producesmore than 1,000 films annually.According to the Ernst & Young report ‘Spotlight on Indias?Entertainment Economy, the Media and Entertainment (M&E)industry in India is expected to grow from US$ 16.3 billion in 2010 tomore than US$ 25 billion by 2015.According to KPMG, India is the worlds third largest Television (TV)? 2%market with almost 138 million TV households, only next to China 12%and USA. Cable and satellite penetration has reached around 80%,with high growth shown by the direct-to-home (DTH) service. By2015, television is expected to account for almost half of the Indian 33%M&E industry revenues, and more than twice the size of print media. Admin / Accountants etcNew technologies like high definition television, set top boxes (STBs)?with inbuilt recorders and delivery platforms like mobiles are evolving Core Activities includingrapidly, creating ample opportunities for innovation and growth. Marketing and BD by function? up the radio sector to private investment and transition fromOpening Customer Servicea fixed fee to a revenue sharing license regime is helping it to grow at Senior Managementa fast pace.? digitisation, media consumption and improvingGrowingdemographics are the most important drivers responsible for thegrowth of this industry. The digital subscribers (digital cables, DTH, 54%IPTVs, etc.) are expected to surpass the analog subscribers by 2013.Telecom Regulatory Authority of India (TRAI) has set March 31, 2015as the revised deadline for digitisation of the entire industry in aphased manner. The four metros are required to shift to digitaladdressability by March 31, 2012.The Ministry of Information and Broadcasting (I&B) also plans to push?for easing the process of import of equipments to speed up the 8%digitisation process. Further liberalisation of FDI regime for cablecompanies is also being considered.The favourable growth outlook is expected to attract more investment? 24%in this sector and a lot more organised, corporate involvement in theentertainment industry. This will further improve the infrastructure. 27% CampusFor example, a film city is coming near Bengaluru, in a 300 acre plot,at an investment of around Rs 1000 crore. HR AgencyAccording to Telecom Regulatory Authority of India (TRAI), the? by hiring sources Referralscountrys broadband subscriber base stood at 12.69 million in August 3% Social Media2011. India has also emerged as the second largest mobile internetmarket. In terms of YouTube uploads, India is second only to USA. OthersThis opens interesting opportunities for growth of new media outlets.The newspaper industry also continues to gain in readership in India?on the back of rising literacy rates, growth of regional markets andspecialty newspapers. 39% Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Expected Employment Expected Employment September 2011 December 2011 March 2012 December 2012 15.3% 16.7% 1,443,900 1,482,898 1,526,372 1,645,162 Estimated increase Expected increase during Oct - Dec 2011 during Jan - Mar 2012Note: Employment numbers are given as round figures

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