How staffing industry in India grown over the past five years?admin
The staffing industry in India has grown to an extraordinary level, especially in the area of a third-party payroll service provider. Staffing in India has shown much activity with the growth of business and commerce. Temporary staffing has shown remarkable growth over the last few years. In simple words, the staffing industry is all poised to make a giant leap in the coming years. Over the past five years, the industry has grown at a rate of 20-25% per year, and it is not showing any signs of slowing down as yet. The staffing industry in India essentially provides a platform for recognized employment, work choice, reasonable compensation, annual benefits, and health benefits for the temporary workforce.
Some Interesting Statistics
According to the Indian Staffing Federation, the apex body of the staffing industry, at present, the sector comprises of 15 leading firms that account for Rs 270 billion in revenues and is poised to grow at 12 percent this year and 10 percent in the next year. A third-party payroll service provider is gradually gaining importance over the year among the corporate.
Trends that will affect the staffing Industry
Skill and Talent gap issues in India: It has been found that over 39% of the employers in India find attracting and finding quality talent is one of the most challenging aspects. While 90% of the jobs are skill-based, only 2% of the population possesses the required skill. This poses a tough challenge for the industry, and the employers are looking at Third-party payroll service providers in a big way.
Rise of the Gig Economy: While the Gig economy is still in its infancy, it is expected to grow soon. A recent study by McKinsey estimates that up to 20% – 30% of the workforce in developed markets is involved in independent work. This will undoubtedly affect the talent strategy of the organizations. Temporary staffing will gain prominence in the coming days.
Rise of Digital Staffing Platforms: Given the rise in need for contingent staffing, several digital platforms such as Upwork, Shiftgig, and talent have come to the scene, and these companies match the talent needs of the enterprises and job requirements of the individuals in a very cost-effective way. They will soon be coming to the Indian markets, and that will certainly pose a challenge to the traditional staffing companies.
Technology: This will become an important enabler for staffing companies, especially in the field of IT Staffing. It is reported that AI can automate up to 75 percent of the recruitment process. Staffing firms will need to invest in automation solutions for time, attendance, and expense management to improve efficiency and accuracy for compliance and approvals.
Thus, we see that the staffing industry has gone phenomenal growth, and especially IT Staffing and Temporary staffing are poised to make further strides in the times to come making the overall recruitment business a very lucrative one at least in India.