Organized companies ahead in recruitment space: Kamal Karanth

The Indian permanent recruitment market is similar to the global recruitment market. The lion’s share of the global permanent recruitment market is with the mom-and-pop-shops. By virtue of developing special niches for themselves, these boutique firms; in a fragmented way have a share of more than 70% in the market. India is no different; with 80% of the permanent recruitment market still with these niche players or boutique companies as you may call them. Whereas the flexi-staffing business presents a different picture: worldwide 70% of the staffing market is controlled by large organized players. In the Indian context too it is very similar; out of the 1.3 million flexi workers that have been estimated by Indian Staffing Federation (ISF) about half of which is with the top ten players. The geographical spread advantage, multiple service lines, technology, compliance needs, cash flows etc., have enabled the larger organized companies to stay ahead in this space.