Background screening involves verifying a candidate's personal and professional details provided during hiring. This process has been used in Western countries for over 30 years and in India since 2000, primarily by IT/ITES and banking companies. The background screening market in India was estimated to be around 250 crores in 2012. Screening helps minimize risks and costs by reducing turnover and avoiding wrong hires. It verifies details like identity, education, employment history, character references, criminal records and more. Candidates must submit documents and authorize their employer to conduct screening. Service level agreements and penalties are in place if the screening provider does not meet compliance standards.

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What is Background Screening?
 Background screening is nothing but, verification
and validation of professional and personal
information provided by the candidate at the
time of his / her employment.
 This process has been prevailing in the western
countries for more than 30 years and is being
practiced in India since the year 2000.
 Mainly IT/ ITES and BFSI Companies used to avail
these services till 2005. Off late, all service sector
companies and manufacturing companies have
seen value and started availing the background
check services.

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Background Screening Industry
 Background screening market in India is estimated to be
around INR 250 Crores as of year 2012
 Since these services are provided at PAN India level by the
service providers, there is substantial amount of entry
barriers due to Chicken or Egg situation to enter this
industry.
 NASSCOM on behalf of IT / ITES Industries (who are major
consumers of background check process) have empanelled
Twenty one Background Screening Companies in India
to conduct background screening process.

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Why it is conducted in India?
 It is estimated that one out of every six CV is misrepresented
with respect to employment, education information etc.
 In a desperation to get an employment, many candidates
produced false information in their resume without realizing the
repercussion leading to wrong hire by the employer.
 It can be either to do falsified salary information, termination by
previous employer, non-completion of educational qualification etc.
Background screening leads to… This results in…
 A more desirable workforce  Minimize Risks
 Reduced human turnover  Reduced human capital expenses
 Increased productivity  Avoid wrong hires

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Types of Background Checks
 Through the process of background check, verification is carried out on the following
parameters.
 Residence Check.
 Identity Check.
 Academic Record / Professional Certification Check.
 Employment Check.
 Character Reference Check.
 Court Record Check.
 Criminal Record Check.
 Global Database Check.
 Drug Test.
 Driving License Check.

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Background Check Process.
Background Verification (BGV) Form with Self Declaration &
Letter of Authority (LOA):
 Every candidate should submit a duly filled BGV form that elucidates the candidate’s
personal, academic and employment details.
 The BGV form also contains a self declaration, binding the candidate’s employment
in that organization is subject to clearance of all the checks positively.
 The BGV form should be submitted with the relevant documents supporting the
candidate’s education, residence, employment etc.,
 The candidate shall execute a Letter of Authority authorizing the employer or its
authorized representative to conduct background check.

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Service Level Agreement (SLA) & Penalty
 A service-level agreement is a negotiated agreement between two parties, where
one is our client and the other is the service provider Matrix .
 The SLA records a common understanding about services, priorities, responsibilities,
guarantees, and warranties.
 SLAs commonly include segments to address: a definition of services, performance
measurement, problem management, customer duties, warranties, disaster recovery,
termination of agreement and billing process.
 Penalties are agreed by Matrix with all major Customers, in the case of non-
compliance of the SLA. The penalties may range from 20 % to 50% of billing based
on the agreed SLA.
 Matrix as a service provider demonstrates their value by organizing themselves with
ingenuity, capability, and knowledge to deliver the service required.

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Thanks!
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@ kameshwer.kc@gmail.com