The document summarizes an industry panel discussion on the evolution of manpower outsourcing and preparing for the future. It notes that outsourcing is a major focus for companies currently and is expected to almost double by 2020. The panel discussed future trends in the dynamic outsourcing industry, challenges it will face, and growing sectors. Panelists highlighted the need to identify core competencies that can be standardized and outsourced while ensuring outsourced employees have career paths and quality is not impacted by cost reductions. Younger generations also expect more flexibility and freedom in their work, which companies must adapt to in order to retain talent in a competitive landscape.

1. Evolution of Staffing
The rise of new business models and changes in workers' expectations
require a realignment of the manpower outsourcing paradigm in the
near future

2. Contd…
Outsourcing is presently the focus of all companies, big and small as
the crux of talent hiring in the new millennium. The outsourcing
segment has been evolving at a fantastic pace already but a tectonic
shift looms inevitable in the near future considering that the staffing
industry is expected to almost double by 2020.
The Economic Times Knowledge Forum, in association with
Innovsource, which is the fifth largest staffing company in India, hosted
a panel discussion with industry leaders in manpower outsourcing
titled 'Evolution of Manpower Outsourcing Preparing for the Future'.
The discussion was held at Bengaluru on December 4, 2015. It was the
second event in a series that looks at the manpower outsourcing as a
segment. The first discussion was hosted in Mumbai.

3. Contd…
The conversation between industry leaders in Bengaluru dwelled on the future
trends in this dynamic industry, the various challenges it will face and the sectors
that will be in demand. The panel consisted of Praful Thachery, co-founder &
Director, Delyver Retail Network; Xitij Kothi, co-founder, Parcelled; Mayank Kumar,
co-founder and CEO, Opinio (Moonshots Internet); Priya Gopalakrishnan, Director
Human Resources, Exide Life Insurance; and Raja Sekhar Reddy, Director and COO,
Innovsource. The discussion was moderated by Paromita Chatterjee.
In his introductory address, Mayur Taday, Deputy COO, Innovsource, said that this
event was a platform for industry experts to express themselves, to share their
knowledge, insights and expertise, and induce a higher level of creativity in the HR
space. In her keynote speech, Dr Saagarika Ghoshal, Director Human Resources,
Metro Cash and Carry, spoke about what corporates are expecting from their
manpower service providers and how they will make a difference to their
businesses.

4. Contd…
“The primary question that looms is this is the company equipped to hire the
right talent, especially highly specific to niche products, and will it be able to
motivate people, and retain that talent to keep attrition low?
Corporates would also like to look at how their processes are global and
governance-focussed and this is increasingly becoming more significant at
the corporate level,“ she said.
In her presentation, Dr Ghoshal highlighted the parts and processes of an
organisation that can be outsourced. “Depending on the company's business
model, the HR firm should be able to identify which core competencies and
processes can be standardised,“ she said, adding that it is the role of HR
professionals to ensure that outsourced employees have a career path in the
organisation and that cost reduction does not impact the quality of the
people hired.

5. Contd…
In his two-part address, 'Manage Business Risk through Adherence of
Statutory Framework Role of Staffing Companies to meet this Business
Metric', K Varadan, COO, Aparajitha, highlighted staffing arrangement and
areas of focus, and specifications of compliance with labour laws. Besides
highlighting the various rules and regulations of staffing companies and their
compliance, he also explained modern workplace terms such as flexi-work
options, and the rules governing contract workers or temporary staff.
Emphasising the evolution of the Gen Y, Aniruddha Mahajan, Head of HR,
GoJavas (QuickDel Logistics), presented statistics in his keynote address
'Managing Exponential Growth and Changing Employee Expectations
Preparing for Future for the Ever-growing e-commerce Sector'. “By 2025,
Gen Y will be 75 per cent of the work force. Of them, the new age
entrepreneurs will comprise 52 per cent of youngsters who will be working
for themselves.

6. Contd…
64 per cent feel that they would rather earn less at a job they love doing rather
than earn more at one they think as boring,“ he said, adding that these Gen Y
employees want freedom to work without guidance and companies hiring them
need to know how to keep them engaged and hence retain talent.
Gopalakrishnan revealed that many companies are not using outsourced staff to
cut costs and also include them in their awards and recognitions policies that
onboard employees enjoy.
On the question of prudence in hiring onboard and outsourced employees, both
Thachery and Kothi agreed that as their individual companies are startups, they see
more advantages in outsourcing talent in the current scenario. “As we scale up and
get more productivity from our work force, we may introduce incentives,“ said
Kothi. On the challenges of attrition and retaining talent, Kumar reiterated the need
for a consortium or database of unorganised workforce and a proper policy
framework in place.

7. Contd…
While the issue of employee stickiness or loyalty and on how the
situation in the e-commerce industry will be five years hence, Reddy
mentioned that it was vital to bring the unorganised labour into the
organised sector and to give them a social security cover such as ESI,
PF, etc.
Summing up the discussion, Reddy said that one challenge was the
huge chunk of the Indian work force being in the unsecured segment.
The other challenge, he said was having the government to recognise
this channel called 'staffing' which will give a push towards moving this
unorganised sector into the formal employment model.

8. For details and bookings contact:-
Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants & Other-Mother
marketingandcommunicationconsultants.com)
Email :-saxbeeconsultants@gmail.com
Mobile No. +91-9818308353
Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015