The changing business ecosystems and a continuous spike in newer technologies have affected companies’ talent demands. The evolving market conditions and a paradigm shift brought about by the ongoing pandemic have led companies to chart their talent demands beforehand.
The role of a staffing agency has increased ten folds. The staffing industry has been actively involved in catering to the growing market of temporary staffing arrangements. This proves that the staffing agency is not just an intermediary between an employee and the employer but rather a powerful shaper of the changing labor market. But this is not the only reason why India has seen a spurring rise in the staffing agency trend.
The government’s focus on growing SMEs & startups, pegged by the growing technology has put a lot of pressure into making the right hiring. Given the impetus to grow the manufacturing sector and initiatives like “Make in India” slowly take off, hiring numbers across the board are bound to go up.
Large companies are cutting down costs while start-ups and SMEs want executives only for a said project or a limited period of time. One solution for both is opting for temporary staffing agencies. Some of the industries have already made their mark with outside hires like retails, FMCG, logistics, and the IT industry which is currently in the lead.
Statistics
According to Indian Staffing Federation (ISF), an apex body of the Flexi staffing industry, the sector which comprises 15 leading firms that account for Rs.270 billion in revenues is projected to grow 12 percent this year and 10 percent the next year.
In recent years, the process of temporary staffing has proved to be a boon to Indian enterprises. With work flexibility and easy hiring, companies can accommodate new talents as per their requirements.
1. Technology
There is no denying that the technological advancements in India have reached great heights. Technologies like cloud computing, AI, and automation are redefining how processes are conducted. With newer advancements, fresh talent demands are increasing. A paradigm tilt towards a more customer-centric approach has led industries to expand in
untapped areas. So obviously a major talent influx is required. As companies are skeptical about going through a tedious hiring process, a staffing agency comes to the rescue.
2. Lack of skillset and talent gap
Recent reports have shown that over 39% of employers in India face an issue in hiring the correct skillset and talent for their job openings. With 90% of jobs being skill-based only 2% of the population has the required skillset. This is proving to be a major setback for enterprises. In order to close the gap between skills required and present skillsets, the staffing industry is helping companies with the right resources required for one specific task.
3. Economy Uprise
The Indian economy has been on a steady rise since 2010. The rise of the demand supply chain, an influx of cash, and increased per capita income have led companies to grow like no other. This is undoubtedly affecting the talent strategies of organizations. Temporary staffing will definitely gain prominence in the coming days.
Studies have shown that staffing agencies tend to grow by 12% in the coming years. With the onset of rapid labor market changes, many enterprises have to find ways to tackle the talent hunt crisis. The staffing industry has taken a giant leap in India. Over the years it has grown at a rate of 20-25% and is not showing any signs to stop yet.
Looking for an Indian-based staffing agency that can help you sail through the rough economic tides? Kaapro Management solutions; decade-old recruitment & a staffing agency can rightfully come to your aid.
