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THE BIG
FIGHT
BIG FIRMS AND SMALLER PLAYERS
ARE PREPARING FOR THE ULTIMATE SHOOTOUT.
THEIR PRIZE? ....
THE
TEMPORARY
WORKER
CAN THEY DELIVER PERMANENT RELIEF
IN COST, EFFICIENCIES & FLEXIBILITIES?
PARADIGM
SHIFT
ARE WE WITNESSING THE 'HISTORY-FICATION'
OF OUR PERMANENT WORKFORCE?
ARE TEMPORARY EMPLOYEES THE FUTURE OF WORK?
THE RISE
GLOBAL INDUSTRY Pg 14
INDIAN SCENARIO Pg 38
KEY TAKEAWAYS Pg 61
TURNING TO
A TEMPORARY WORKFORCE.
FOR PERMANENT
BUSINESS ANSWERS.
By enabling savings in areas like cost, efficiencies and flexibilities –
Prepared by
temporary and contract teams are promising lasting business
solutions and staking claim as the future of work.
EVERY
INDUSTRY
FACES AN
INFLEXION
POINT AT SOME
STAGE OF ITS
LIFESPAN. FOR
THE STAFFING
SECTOR, THIS IS
THAT MOMENT
STAFFING IS HERE TO STAY.
OF TRUTH. WHOEVER ADAPTS
QUICKEST STAYS WITH IT,
THE REST WILL BE LEFT
LICKING THEIR WOUNDS.
THIS HOLDS TRUE FOR TALENT, BUSINESSES
AND STAFFING COMPANIES EQUALLY. THE
MESSAGE IS AS STARK AS IT IS CLEAR: IT’S
THE SURVIVAL OF THE SHARK-EST.”
Deepak Kaistha
02 5.1
INTRODUCTION I 10 CUSTOMERS OF
TEMPORARY STAFFING I 34 6.7
FLEXI STAFFING
MARKET I 54
03
5.2
THE EVOLUTION
GLOBAL MARKET
OF STAFFING I 16
SEGMENT I 36
6.8
MYTHS ABOUT TEMPORARY
3.2 STAFFING COMPANIES I 56
WORKFORCE SOLUTIONS 06
ECOSYSTEM I 20 INDIA
OVERVIEW I 40
6.9
3.2 BOOMING FACTORS
GLOBAL STAFFING 6.1 IN TEMPORARY STAFFING I 58
MARKET I 22 KEY TRENDS
IN INDIA I 42
04 07
GROWTH 6.2 KEY
DRIVERS I 24 FLEXI-STAFFING
SEGMENTS I 60
INDUSTRYWISE DEMAND I 44
4.1 6.3
KEY DRIVING 7.1
STATEWISE KEY
FACTORS I 26 MARKET SHARE I 46 TAKEAWAYS I 62
RUNNING AT THE DROP employee are finding harder and harder to resist.
the 'temporary' model of work, are we
witnessing the 'history-fication' of our
OF A HAT. OR, AS THE permanent workforce? Can temporary teams
For employers and HR teams – especially in the
INDUSTRY CHOOSES manufacturing and consumer facing milieu – indeed deliver permanent relief to businesses?
TO CHRISTEN IT, temporary staffing is fast becoming Are contract workers the future of work?
'ON DEMAND'. synonymous with on-demand talent pipelines,
huge cost savings, hassle-free dynamics, AN INITIATIVE OF
Say Hello to the flexible formats and a talent pool that's both TBMGROWTH, THIS
'Contract', 'Seasonal' skilled and professional. REPORT ENDEAVORS
or 'Temporary' worker. For employees, the seasonal economy opens TO SCRATCH UNDER
Shifting consumer demands, shorter product doors to supplementary income, practical THE SURFACE TO PIECE
life cycles, urgency to optimize budgets and a work exposure, flexible lifestyles and a TOGETHER STATS,
growing trend of outsourcing non-core stepping stone to professional success. INSIGHTS AND
functions is witnessing the rise of this breed, Indeed, sizeable employment opportunities in PREDICTIONS UNDER
making it amongst the fastest developing talent sectors like e-commerce, retail, banking and ONE ROOF. THE BIG
marketplaces, globally. finance, technology and logistics are causing GOAL? TRIGGER
this tribe to consider temporary employment ACTIONABLE
as a viable, long-term strategy. PERSPECTIVES AND
LAY DOWN CLEAR
In India, the story isn't much different. According
ACTION MAPS FOR
to TMBG's sources, the Indian staffing sector is
STAKEHOLDERS
growing at a scorching pace of 35% annually,
ACROSS THE ECONOMY
and already accounts for a good 13% of the 2.5
WHO ARE IMPACTED -
trillion dollar GDP. It employs a staggering 3.4
IRREVERSIBLY - BY THE
million workers today, a number that should
PHENOMENON OF
touch 8.91 million by 2022. Powered by
'TEMPORARY TALENT'.
technology, the Indian staffing ecosystem is all
set to tide over its recent setback (an upshot of
demonetization and GST), and is widely
expected to run into favorable winds soon.
designers – in other words, the terrain was BETWEEN RECRUITERS AND steam to the movement. And a clutch of
MAPPING STAFFING
INTERCONNECTED INDUSTRY ANALYSTS
NETWORKS OF
THE UNFURLING
NEW WORKFORCE WORKFORCE SOLUTIONS ECOSYSTEM
UNIVERSE.
Advancements in technology, emerging
new trends and fast mutating practises
means that the workforce solutions
ecosystem – comprising Talent Acquisition
Technology, Process Outsourcing,
Payrolling / Compliance, Contracting / HRO PEO
Consulting and Other Workforce Solutions - INDEPENDENT
BPO CONTRACTOR
is undergoing tumultuous transformation.
COMPLIANCE
MSP
For stakeholders, this presents threats
RPO PAYROLLING
and opportunities in nearly equal
measure.
RCE SOLUTIONS
Ancillary
HR Services STAFFING Directly Sourced
HR Consulting Temporary Staffing Contingent Workers
(Temps/
Outplacement Place & Search
Independent
Testing Contractors/
O
Freelancers)
HR Tech
RKF
Training & SOW Consulting
O
Accredition Services
W
Online Staffing
ER
ONE THING IS CLEAR: THE MOST Platforms
VMS
H
RESPONSIVE AND ADAPTIVE PARTY
OT
ATS Crowdsourcing
- AND NOT NECESSARILY THE ONE JOB BOARDS Online Work Services
THAT’S BIGGEST OR STRONGEST - Human Cloud
WILL EMERGE VICTOR.
GLOBAL
STAFFING
MARKET
NEW METAPHORS, AT WORK That, coupled with the traditionally high costs
of permanent teams, is causing corporate
Globally, seasonal workers are
leaderships to lean-in towards short-term
driving unique value for businesses,
teams for long-term headways. And redefine
by ushering a customizable mix of
the very fundamentals of ‘smart work’.
benefits to the table.
86.5%
Source:
Staffing Industry Analysts
strategy I execution I capital 20
4 GROWTH
DRIVERS
WHY DO COMPANIES
PREFER TEMPORARY
STAFFING?
IMPROVED PRODUCTIVITY BIG SAVINGS
Saddling full time employees with too much Statistics confirm that the average cost of a new
work can lead to loss of motivation, burn-out hire is growing. When one factors in recruiting,
and reduced productivity. Bringing in temporary training and benefits, the costs add up quickly.
employees can help relieve the burden on full Temporary hiring cuts through these deterrents.
time staff.
OTHER DRIVING
FACTORS FOR TEMPORARY
THE CITY FACTOR STAFFING ARE:
AS NEW CITIES ARE BORN, AS THE Newly relocated population FLEXIBLE & COMPLIANCE WITH
OLD ONES GROW BIGGER, AND AS 'testing the waters'. AGILE WORKFORCE REGULATIONS
METROS RISE IN STATURE -
ESPECIALLY IN DEVELOPING Newly unemployed population, or one that's
between jobs.
NATIONS LIKE INDIA, INDONESIA,
MALAYSIA, BRAZIL, AND MEXICO – Population that's available for seasonal
THE DEMAND FOR TEMPORARY employment only.
EMPLOYEES ACCELERATES.
Population in college and looking for practical
career experience.
In places like UAE, where there are big
investments taking place, the demand Newly graduated population in need of
experience before starting a full-time job.
for temporary workers is skyrocketing.
Staffing firms, on their part, are utilizing Population interested in learning new skills
the opportunity to broaden their scope and possibly changing careers.
and scale.
IMPROVE ACCESS
PRODUCTIVITY TALENT
CURRENT &
FUTURE GROWTH
THE MAIN FACTORS INFLUENCING THE GROWTH OF THE STAFFING INDUSTRY GLOBALLY, ARE:
1 2 3
TODAY, ROUGHLY 10% OF THE WORKPLACE IS CONTINGENT, AND TBMGROWTH PREDICTS THAT BY 2020
THE STAFFING INDUSTRY WILL CONSIST OF 61 MILLION EMPLOYEES, $581 BILLION IN GLOBAL TEMP
REVENUE, AND 6.2% TEMP HELP PENETRATION. BY 2020, BETWEEN 15% AND 25% OF THE WORKFORCE WILL
BE CONTINGENT AND WELL OVER 20% OF COMPANIES WILL BE UTILIZING STAFFING FIRMS.
According to staffing industry analysts (sia), the staffing industry is expected to grow substantially by 2020.
They figure this growth will be a result of many factors, but primarily the need for a flexible workforce, and
the desire from workers for mobile, educational and flexible careers.
THE FOLLOWING
DOMAIN-AGNOSTIC
FACTORS ARE ALSO
RESPONSIBLE
FOR SPIKING UP
THE DEMAND
FOR TEMPORARY
STAFFING IN THE
MARKET, ACROSS
SECTORS.
C
Establishing a growth driving brand
which is trustworthy.
KEY GLOBAL
PLAYERS
BIG PLAYERS HAVE BEEN
MAKING STEADY AND SOME OF
STRATEGIC MOVES IN THE THESE
GLOBAL STAFFING SPACE FIRMS
FOR A WHILE NOW, THE TOP THREE
PLAYERS IN THE GLOBAL STAFFING
POSSESS
PLAYGROUND HAVE BEEN ADECCO, THE ABILITY
MANPOWER AND RANDSTAD. TO TAKE
Cumulatively, their total revenue compares to ADVANTAGE
the rest of the '17 Houses' put together (when
one looks at the Top 20). Other players making
OF
a mark on the global scene are Kelly Services, EMERGING
Allegis Group, Recruit, KNF&T, Aerotek, Roth MARKET
Staffing and Integrity Staffing Solutions.
OPPORTUNI-
The playground is expanding, with
TIES IN
new players from new countries INDIA.
and regions staking a claim to
That, coupled with their native capabilities
prominence on a global stage.
to crank up productivity at short notice, is
expected to stimulate market dynamics.
KELLY
KNF&T RANDSTAD ADECCO AEROTEK
GLOBAL NAMES SERVICES
IN TEMPORARY
STAFFING INSIGHT ROBERT ROTH INTEGRITY HH
GLOBAL HALF STAFFING STAFFING STAFFING
With 14.4 million temp staffers in 2017, the US SOURCE: TBM Growth
has traditionally been the biggest home to
temporary workers, followed by China (8.1
5 .3
million). India, Japan and France brought up 1
the rear. However, when it comes to clocking a
growth rate basis the national GDP, it was India
that led the field with China in second place –
reflecting the healthy growth of contract
staffing drivers in both the countries.
0 .9
1
Looking forward, one expects USA to
retain its numero uno status in the space
and is slated to employ over 15 million
temporary workers in 2018-19, with
China again in second spot. In the
coming time, it is these two countries 3.4
that will see maximum contribution by
temporary workers.
3.1
US
CH
INA
IND 2.2
IA
JAP
AN
FR
AN
CE
2018E
by other sectors. Before long, players in spaces
like e-commerce, retail, healthcare, telecom
STAFFING FIRMS THAT ARE 3.9%
CATERING TO THE LION'S
and BFSI had thrown their hats in the ring. And SHARE OF THE MARKET PIE.
tasted success.
Today, despite being nascent (when compared Big benefits for businesses, a 6.7%
to more mature markets around the world) and tech savvy population, shifting
2017
largely unorganized, the staffing sector in India attitudes, the rise of outsourcing, 3.7%
is riding an unstoppable juggernaut. The stats and supportive laws are the
recount a fascinating story: Seasonal or favorable winds that are
temporary staffing already accounts for nearly expected to keep the 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%
13% of the country's 2.5 trillion dollar GDP. India' momentum going. And make
temporary workforce economy employs 3.4 temporary or seasonal staffing a India Global Source: IMF
million workers, a number that should touch a viable, profitable and
more-than-healthy 8.91 million by 2022. By sustainable talent strategy for
2025, contract staffing is likely to account for corporates, M/SME's and start-
over a tenth of India's formal sector workforce. ups – sooner, rather than later.
FACTORS FUELLING
THE TEMPORARY STAFFING
MOVEMENT IN INDIA.
Every revolution has its propellers. The growing Temporary Staffing trend in India is no exception.
Its inexorable surge rests on more than one pillar. Here’s a snapshot of the forces defining the
KEY TRENDS Temporary Staffing terrain in India.
IN INDIA
WHILE IT IS SLATED FOR A
BOOM GOING FORWARD,
IT WAS FROM 2014 THAT
01
TEMP STAFFING STARTED Fatser economic growth in India during 2017
will continue in 2018 whcih will propel the
TO GROW, AS COMPANIES temp staffing business in india. According to
STARTED HIRING IMF, the growth is 7.2% in 2016-2017 and it is
expected to be 7.7% in 2017-2018.
TEMPORARY EMPLOYEES
IN HIGHER NUMBERS.
02
Technology trends and tools have been India’s online hiring activities increase by 6% in February 2018. “This
driving cross-sectoral growth when it comes growth is primarily driven by non-IT sectors like oil and gas, BFSI,
industrial products, construction and automobile. The IT sector
to Staffing in India. Fresh candidates are the continues to be under pressure, we can expect this volatility to
primary target audiences for employers, with continue for a few more years before it moves north.
the latter providing them meaningful
opportunities to gain vital experience and
03
bolster resumes.
The key staffing firms like Adecco is investing
more in digital technology as employers
Training candidates up has been a cost-
increasingly seek more flexible staff to
effective proposition so far for companies, but respond to swings in demand, and carry out
more project-based work.
may need a re-look for longer term projects.
India's biggest e-commerce companies -
Flipkart and Amazon - have contributed
significantly to the rise of India's temporary
staffing market, so far. 04 Growth and investments, capacity creation/ expansion and
innovation are the major drivers of temporary or contractual
sales jobs in FMCG, FMCD, Retail and E-commerce.
INDIAN
FLEXI-STAFFING: D U S TRY
N
R R ENT I D
INDUSTRY-WISE C U
E D E MAN I N I N DIA
WI S
DEMAND S T A FFING
EMP
With growing awareness and economic FOR T
growth, penetration of flexi-staffing is rising ACT URING
MANUF
across industries. Manufacturing, BFSI, FMCG
and retail ( the latter including e-commerce) BFSI
IL
G & RETA M
still accounts for a majority of the action. FMC T E LECO
N D
TICS A
The Manufacturing sector alone commands a LOGIS
S
third of the engagement. Logistics, IT/ITES and IT/ITE
others bring up the rear. Fast emerging trends RS
OTHE
like e-commerce and associated services (such
as Logistics), ever-rising demand for flexible
and professionally compliant teams, an
evolving legal terrain and growing acceptance
amongst the talent force are all factors 30
spearheading the boom.
25
13
RETAIL FMCG E-COMMERCE HOSPITALITY
11
10
11
TEMPORARY
STAFFING IN
INDIA:
STATE WISE MARKET SHARE
While temporary staffing as a smart growth
practise is finding resonance in industries and
companies pan-India, it is the Delhi-NCR
region that is witnessing the lion’s share of
5%
action – both in terms of adoption 3.0
and demand.
.01%
1
NCR
HI/
4% DEL
0.9
NA
RYA
HA
A
.59% ATAK
0 RN
KA
HTRA
S
ARA Source:
H
MA TBM Growth
JRAT
GU
strategy I execution I capital 44
6.4 KEY ORGANIZED
P L AY E R S I N I N D I A
BIG FISH
OF THE INDIAN
STAFFING
INDUSTRY
TEAMLEASE
THERE ARE MORE THAN
10,000 UNORGANIZED
PLAYERS IN THE TEMPORARY INFO EDGE
STAFFING MARKET IN INDIA. (ONLINE QUESS
PORTAL)
With industries like retail, consumer goods, e-
commerce and logistics bracing to experience
high demand of temporary staffing workers,
that's where the big players are focusing.
IMPACT OF
GOVERNMENT
RULES AND
REGULATIONS
Growing unemployment is emerging as a In the recent budgetary session, Mr. Arun Jaitley Currently, fixed-term (temporary / contractual)
political challenge, forcing the government to (Hon'ble Finance Minister of India) expressed employment is only allowed in the apparel
step up job creation activities. Government that, “the facility of fixed term employment will manufacturing sector. The cabinet had recently
actions are impacting the staffing industry in be extended to all sectors”. said it could be extended to footwear, leather
India, in particular, by Goods and Services tax This move would allow companies to hire and the accessories sector to help "attract
(GST) and Tax Detected at Source (TDS). workers for short-term assignments and large-scale investments at global scale.”
Staffing firms are expecting a TDS cut from 10% terminate their services when projects are The Indian government is in the process of
to 2% and it will resolve tax irregularities. The completed. altering Labor Laws which may allow industries
key challenge for temporary staffing firms, to employ contractual staffs. This step will
however, is Sales Tax. reduce the unemployment rate in India and
IN JANUARY 2018, THE UNION GOVERNMENT 3.65% boost the hiring rate.
OF INDIA HAS INDICATED A MINDSET
(PERCENTAGE)
REBOOT IN ITS APPROACH TO GENERATING
EMPLOYMENT, PROPOSING TO AMEND
3.60%
RULES TO ENCOURAGE FIXED-TENURE, OR
CONTRACT JOBS.
UNEMPLOYMENT RATE
The impact of GST in the staffing industry may
be a transient one, but it has increased the 3.55%
demand for temporary or contractual jobs
through organized temporary staffing firms.
AND TBMGROWTH Consultants, Adecco India, AON Hewitt Cyber Security, Internet of Things, Data Science
& Analytics, Robotics, 3D Printing and Social.
HAS PREDICTED THE (previously Hewitt Associates), CareerNet,
Global InnovSource, IKYA Human Capital, Kelly
ANNUAL REVENUE Services India, ManpowerGroup India and
MOST SOUGHT AFTER LANGUAGES AND
SKILLS IN THE CURRENT DAY ARE JS.NET
OF INDIAN IT FLEXI- Randstad India. PHP, .NET-JAVA, IOSJAVA SCRIPT, ASP .NET,
STAFFING MARKET From the industry perspective, IT / ITES and .NET, JAVA -ANDROID.NET AND JAVA –UI
FOR THE YEARS 2018 Healthcare are the sectors with the maximum
demand for IT staffing. Start-ups and e-
WHEN IT COMES TO .NET. IN SAP, THEY ARE
SAP IT NETWORKING, SAP HANA AND SAP UI.
TO 2020. commerce, while currently at the bottom of that AND SAS, R, PYTHON AND SQL ARE IN-
list, are also the fastest growing. DEMAND IN ANALYTICS.
The success story of the Indian Flexi-Staffing BY REMOVING
industry is one of guts and glory, in equal UPFRONT COST
measure. While temporary and contract hiring COMMITMENTS AND IT FLEXI-STAFFING MARKET IN INDIA
has been an integral part of India's economy ($ BILLION)
BRINGING MORE
since time immemorial, staffing players started PREDICTABILITY TO
shifting their focus on IT staffing, specifically, HIRING BUDGETS, 5
after it became apparent that the latter delivers AN ON-DEMAND 4.27
much bigger margins as compared to other WORKFORCE FUELS
industries. The sector hasn't looked back, since. 4 3.78
INCREMENTAL
3.37
The Indian IT flexi staffing industry was worth GROWTH FOR 3.04
USD 3.04 billion in 2016-2017 – which is 28% of ORGANIZATIONS - 3
the APAC Flexi Staffing Industry and 4.8% of the QUITE APART FROM
global IT Staffing Industry. With the IT sector on LETTING THEM RE-
the surge, it is expected that the IT flexi staffing FOCUS ON THEIR 2
space will clock 18% growth per annum over CORE
the next few years (across top states and COMPETENCIES 1
Source:
sectors of the country), and emerge amongst AND BIG BUSINESS
TBM Growth
the top employment generators in the country. VISION.
0
2017 2018E 2019E 2020E
THE AGE OF
FLEXI STAFFING
IS TRULY UPON US.
THE INDIAN IT FLEXI-STAFFING INDUSTRY
IS WITNESSING HEALTHY FISCAL AND
GROWTH ACTIVITY. IT HAS EXPERIENCED
A MARKET PENETRATION OF 6.8% IN FY17,
WITH TURNOVER TOUCHING USD 59
BILLION IN THE SAME PERIOD.
In percentage
IT FLEXI-STAFFING GROWTH Source:
FORECAST (SECTORWISE) IN FY-18 TBM Growth
20
17.3%
15.8%
15 14.1%
12.7% 12.6%
11.5% 10.8%
10
05
0
IT/ITES BFSI Manufac- Chemical Oil Retail Healthcare Startup &
Turing and Gas Ecommerce
Source:
Indian Staffing Federation strategy I execution I capital 56
7 KEY
SEGMENTS
CONCLUSION
BUSINESSES TODAY HAVE
AN ALL-NEW EDGE.
AND IT CAN BE SUMMED
UP IN TWO WORDS:
TEMPORARY STAFFING.
No matter what the industry – e commerce,
IT, telecom, healthcare, retail, trade &
industrial, FMCG, hospitality, legal, textiles
or administration – companies and teams
are leveraging the power of Temporary or
KEY Contract Staffing as a strategic growth tool
TAKEWAYS to leapfrog ahead.
Globally, staffing firms have played a huge role in the Less legal hassles and paperwork giving organizations
THE IDEA IS WORKING As a bridge between companies and talent,
employment scenario - and in India alone, staffing firms even more reasons to turn to temporary teams.
AT MANY LEVELS. staffing companies will have a more important
have generated more than 5 million jobs over the last role than ever to play. The good news for
Last-minute solutions and boosted speed-to-hire are
decade. For companies, the pot of gold comprises huge
making recruiters and HR teams addicted to the them? The game is now being played on a
savings, anytime talent and reduced hassles.
Temporary staffing in India is growing at a healthy pace seasonal / temporary hiring model. level field. That's right: With traditional
For professionals, flexible employment, resume
of 25% CAGR, and is slated to touch 9 million workers advantages like legacy, size and budgets
Staffing firms will go from a 'provider of heads and building opportunities and greater work-life
(and represent 10% of organized workforce) in the gradually moving out of the equation,
hands' to becoming a strategic talent partner by helping
country by 2025. balance are the standout incentives. And with
businesses 'get things done'. everyone today has a fair shot at the
owners of staffing companies expecting their
High costs, inflexible arrangements and redundancy humongous (and fast growing) staffing pie.
An entire ecosystem will be created out of temporary firms to post fatter revenues faster, the future
(due to technology) of permanent workers – along with
workers, making it easy and practical for businesses to promises phenomenal growth for both big and
rise of outsourcing - are causing companies to focus on For staffing service providers, the rules of
find temporary workers anytime. small players in the sector.
a temporary workforce. engagement, and success, are simple:
Temporary models will enable better economies of
In addition, new labor laws are boosting the adoption of If you are creative enough to disrupt smarter,
scale for companies in the long-run.
temporary workers. agile enough to respond faster and
Temporary staffing is therefore promising a sustainable
Knowledgeable and efficient 'temporary candidates' are professional enough to deliver without
way to drive prolonged business growth performance in
proving to be a viable substitute for permanent staff. excuses, you will score big wins.
times of uncertainty and change.
Big cost savings are making temporary workers a
lucrative alternative for businesses not just over the
short-term, but the long run as well.
Anubhav Saxena
Executive Director
TBM-TALENT
ACTIVATING 5 DIMENSIONAL
GROWTH PERFORMANCE
WITH THE POWER OF TRANSFORMATIONAL
HIRING AT SCALE
growth@tbmgrowth.com tbmgrowth.com
I T ' S T H E S U R V I V A L O F T H E
SHA RK EST
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