Recruitment Firms - limited only by their Vision and Resources

Looking at today's robust economic environment and the fact that the real action, on the economic front, over the next few decades is going to be in the Asia Pacific region, I believe that the Recruitment Outsourcing business is headed for good growth and the winners will be the ones who have the vision and the resources to implement the same.

Janaki Krishnan writes in the Business Standard that even as India emerges as a hub for critical talent, not only in software but also other sectors, recruitment and placement agencies are gearing up to meet this challenge. In the recruitment space, managed services is seen as the next big wave.

Managed services essentially refer to recruitment process outsourcing, where companies will be outsourcing their entire process recruitment which will essentially be a mix of on-site recruitment, temp staffing and managed services.

Tarun Bali, managing director of ABC Consultants, among the largest placement agencies in the country, is extremely bullish about the recruitment scene in India.

“With the economic environment so robust, the recruitment industry will grow even faster.” He however cautioned that the only impediments to growth would be in the quality and volume of recruiters.

Job seekers can take heart from the fact that compensation levels will approach client standards.

Clients themselves will go back to working with a few partners which means that recruitment and placement firms will have to increase their delivery capability. “Only these kinds of firms will grow,” Bali said.

At present, delivery is a big issue with clients. Working with multiple partners - as many as 30 in some cases - client organisations are forced into this situation owing to lack of concern for quality, time lines and weak candidate management by recruitment partners.

There is shortage of quality recruiters which is still not considered an attractive industry to work in.

Industry watchers said that another turned which would emerge is that recruitment firms will have to tap into emerging employment sectors such as retail, Information Technology and IT enables services.

Bali estimates that retail is expecting 20 lakh new jobs in six years. While in the case of IT and related sectors there will be gaps in specific areas.

“Therefore recruiting partners need to work with the industry in identifying potential sources and partner with them in training and workforce management,” Bali said.

Multinational recruitment agencies are already in India and the result of this is that staffing will approach western standards in three years, while level of employees “deputed” to employers will move up, more and more senior executives will begin to work “flexi”.

“Recruiting firms in India will have greater opportunity of working with clients overseas in their quest for Indian talent, as India becomes hub for critical talent,” said Bali.

For niche segments such as biotech, animation, IT product development, research and development in auto sectors there is not enough talent available in India.

Here the recruiting challenge will be the ability to attract critical talent from overseas. Thus both client brand and recruitment firm brand will determine who will get the talent first. This will require firms to work on building their employer brand.

The challenge will be to tap talent in B and C class towns especially for sectors like retail, insurance, call centers and so on.

Bali pointed out that recruitment agencies will be limited only by their own vision and resources. “This is the time to think Big,” he said.