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Sep, 16 2010

Right people on board

People are the most powerful assets of a company and the ability to choose the right ones can go a long way in fine tuning success

Human capital is one of the primary aspects of any business. Organisations are always on a lookout for skilled staff. Serving these needs are staffing solutions providers, who make the maximum of this resourceful business opportunity.

Business potential

Human resource management and consultation has become a big business today. TeamLease, one of India’s leading staffing solutions firms, estimates the size of the industry to be about Rs 4,000 crore with a total headcount of about 10 lakh people. Besides SMEs, corporate organisations form a major chunk of the clients for these firms. Indian employers forecast a booming labour market in the third quarter of 2010. With 44 per cent of employers anticipating an increase in headcount, 2 per cent predicting a decrease and 46 per cent expecting no change, the Net Employment Outlook stands at over 42 per cent. Though the sector is fragmented, there has been an increase in the number of organised players. The sector started gaining prominence with the entry of international players like Ma Foi. In the recent past, there had been a rise in the number of organised staffing solutions providing firms. Besides TeamLease, Adecco, Kelly Services and Manpower are other prominent names in the staffing solutions industry. In an era of specialisation, staffing solutions firm not only focus on hiring but also provide training to make the candidates job-ready. They set up a network of offices to serve customers better. Training organisation i360 is into student, corporate and institutional training. Besides, it also provides recruitment and staffing solutions. According to Deepanshu Khurana, Chief Executive Officer, i360, Staffing & Training Solutions Pvt. Ltd, “At present, our share from corporate clients is approximately 20 per cent of the top line, but as we move forward, we expect it to rise up to 40 per cent by this financial year end.”

Flip side

As a staffing solution provider, you will have to serve various businesses at the same time. It’s important to stay abreast with various industry demands and accordingly, structure the hiring and consulting. Counting on the challenges, Khurana says, “Staffing solutions is a very complex business to operate, as different industries have different requirements along with the statutory norms of the government, industry-specific customisation, low employee payout, employee motivation and retention. Employee-related HR issues remain a major challenge for any staffing company.”


Transferring business know-how in a service business doesn’t come easy, as service quality is a major issue. The franchisor provides the franchisee access to database and back-end office operations. To avoid this, i360 has a complete partner support system. Right from induction to recruitment to training to launch and subsequent post-launch support; it has drafted a detailed partner support system.


Major staffing companies are keen to expand in tier II and III cities. i360, which is present in 50 locations, intends to increase its count to 150 by this year-end. Laksh Staffing Solution, another HR consulting firm, aims to open 100 centres by 2011. People with an HR background and good networks are preferably well-suited for this industry. This business is a low-investment opportunity, which is more about spending quality time and building a network.


Cost count

  • Set-up investment: Rs 5 to 8 lakh
  • Working capital: Rs 3 to 4 lakh
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