Ajit Issac, Managing Director & CEO, IKYA Human Capital Solutions
The Indian HR services industry comprises of global majors who have acquired their way into the market, homegrown established players and local players who are present in less than two markets. Though the industry has undergone a wave of transformation from being utilized as service providers to being considered partners in progress, it is highly fragmented with 75 per cent of the market being accounted for by the local players who number 20,000.
Customers seek to work with partners who demonstrate the necessary skills in handling multiple aspects in the recruitment/staffing domain. This has resulted in the rise in demand for outcome-based, SLA-managed engagements from customers. The days of requisitions and requests are being fast replaced by managed services and recruitment process outsourcing. Customers are willing to pay a premium if the service provider is willing to deliver more. From a provider’s standpoint, it calls for a greater degree of understanding of the customer’s business and the willingness to put their skin in the game to ensure the success of that engagement.
India has always been a price sensitive market and pricing continues to be one of the primary reasons for selection of service providers. However, we have witnessed a growing emphasis on quality and timeliness, an approach followed in mature markets. As time goes on, we will see a greater emphasis on these attributes in addition to being competitive on price.
Customers are also looking at greater participation from service providers evidenced by the fact that they are open to outsourcing and let an external entity manage certain activities and functions, which may or may not be core to their operations. Performance management is also measured in terms of RoI and metrics. This, going forward, will be the new normal where service providers would have to demonstrate multi-industry and multi-competence capabilities and be measured on the efficacy of their services.
Talent is a major cause of concern owing to a lack of quality recruiters and the preference of fresh HR professionals in choosing a career in non-recruitment related HR roles. The industry has to collectively brainstorm and arrive at an approach that would make recruitment an attractive career choice for graduates. Three major trends will dictate the recruitment industry’s growth in the coming months – greater technology use, greater emphasis on quality, and managed services and RPO.
As told to People Matters