India Inc may embrace flexi-staffing in 2014
In flexi staffing employees are hired by an external agency and work for clients they are assigned with. “India Inc should develop in the right direction. It will be a bumpy road. It will be a growing market in the long haul, say 10-15 years. We also expect a dramatic growth rate in terms of employees and their growth. The country has now developed a right climatic condition for flexi-staffing,” said Paul Van de Kerkhof, chairman, Randstad India.
It is estimated that in India the flexi-workforce could be 40 times smaller than what it is in markets with a mature workforce. For instance, the penetration of such workforce in the US, Europe and Australia could be between 1.5 to 4 per cent, while it is one tenth of one per cent here.
“Most of the companies are in a ramp up phase and because of rampant fluctuation they were not keen on flexi-hiring. Typically this kind of hiring is considered for companies with more than 500 employees. Flexible labour is the need of the hour now,” said Moorthy K Uppaluri, chief executive officer for Randstad India and Srilanka.
Of the 750 million people in the working age that is between 18 and 59, only 420 million people are employed. Of the employed people again, there are only about 42 million in the organised sector. “In the organised sector there are 19 million people with permanent jobs and 1.3 million people with tripartite agreements,” the CEO said.
According to him, any market could be defined by a spectrum of industries that could be categorised into ones with rampant growth, flat growth and declining.
“It is a mixed bag always. Like in India, pharma, healthcare, banking are growing well at a rate of low teens. Hospitality and IT are witnessing a middle growth rate of seven to nine per cent. Where as the flat or declines ones could be telecom, auto and insurance,” he said.
Credit to: Trushna Udgirkar at mydigitalfc.com