5/30/2015 About 6 lakh new temporary jobs likely to be created in India this year - The Economic Times

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By Prachi Verma, ET Bureau | 30 May, 2015, 05.44AM IST Post a Comment

Demand is seen driven by ecommerce, retail, IT, FMCG,

banking, financial services & insurance (BFSI) and healthcare

companies.

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About 6 lakh new temporary jobs likely to be created in Indiathis year

NEW DELHI: About 6 lakh new flexi-staffing jobs are likely to be created in India this year, the

highest so far, with salaries set to increase by as much as 20%, driven by a boom in

ecommerce, retailing and manufacturing, according to estimates by placement companies.

"With a million youth added to the workforce every month and with barely 2% having any formal

skills, staffing is the most effective type of employment, which bends the curve in favour of our

youth and helps them become further employable," said Rituparna Chakraborty, senior vice-

president and co-founder of Team-Lease Services.

Robust growth this year

"It could not have been a better time for flexi-staffing in India," Chakraborty said. TeamLease, a

recruitment consultant, human resource outsourcing and staffing company, placed 85,000

people in flexi-staffing jobs last year and about 16,000 workers in the first quarter of this

calendar year, said Chakraborty, who is also president of the Indian Staffing Federation.

Staffing companies such as ManpowerGroup, Randstad and Adecco, too, are betting on huge

growth this year. Demand is seen driven by ecommerce, retail, IT, FMCG, banking, financial services & insurance (BFSI) and healthcare

companies. With the government's thrust on manufacturing, the sector is expected to add to demand for temporary workers.

Salaries are also likely to see a 15 to 20% increase at all levels, with maximum impact at the bottom of the pyramid, said Suchita Dutta,

executive director, ISF. At the entry level, salaries typically start at Rs 10,500 per month and go up to over Rs 2 lakh a month for senior

positions.

ISF members (41 companies) account for about 30% of the total staffing industry, most of which is still unorganised. According to ISF,

temporary staffing or flexi-staffing is a fixedterm employment to meet shortterm, niche or project-specific needs. People are employed by a

staffing agency and then hired out to perform work at and under the supervision of a user company.

Frontline staff — customer services, sales and customer prospecting, and telemarketing — account for the vast majority of flexi-staffing. Other

areas include technical functions such as installation and commissioning and repairs and maintenance, as well as senior positions such as

technical specialists and management experts.

Growth trajectory

In the past 10 years, about 5 million temporary jobs were created in various sectors, with retail and ecommerce driving demand more recently.

"Last year, demand for temporary workers was on a standstill for the first half. The growth in staffing was only 8%, largely led by the festive

season and ecommerce in the second half. This year, demand has been up since the very beginning of the year," Dutta added.

"This year, we are looking at a robust growth of 25 to 30% in the demand for temporary workers, triggered by sectors like IT, ecommerce/retail,

FMCG, healthcare and BFSI," said Moorthy K Uppaluri, CEO, Randstad India. ManpowerGroup is targeting placement of over 45,000

temporary workers this year, up from 37,000 in 2014.

Srikanth Rengarajan, executive director and president at ManpowerGroup India, points out that the talent in the space of technology, digital

marketing, R&D and data analytics will attract a premium from this year.

Adecco, one of the country's largest staffing companies, placed over 1.2 lakh associates last year. "For this year, we are expecting a growth of

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5/30/2015 About 6 lakh new temporary jobs likely to be created in India this year - The Economic Times

http://economictimes.indiatimes.com/jobs/about-6-lakh-new-temporary-jobs-likely-to-be-created-in-india-this-year/articleshow/47476648.cms?prtpage=1 2/2

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around 20%," said Angelo Lo Vecchio, country manager and managing director at Adecco India.

Apart from ecommerce, Adecco India is investing more in the BFSI and pharmaceuticals sectors. In ecommerce alone, it placed over 10,000

employees last year in temporary staffing. "We have an exclusive talent supply chain team which works for the ecommerce sector," adds

Vecchio.

"Staffing is expected to grow from the current 1.7 million organised workforce to 9 million by 2025," said Chakraborty of Team-Lease.

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