Mumbai is most preferred job destination

The Indian staffing market that was worth $5 billion in 2012 has some clear favourites in terms of where people prefer to work, according to a global report.

While Mumbai scores over Delhi and Ahmadabad as a preferred location, the Silicon Valley of India, Bangalore, is followed by Chennai with its broad industrial base, for employees seeking work.

Hyderabad, with its title of Genome Valley, is next in the rankings, followed by Kolkata, which is the third most populous metropolitan area, but lagging in economic muscle.

Noida just outside New Delhi, which is a major hub for multinational firms outsourcing IT services, comes next, followed by smaller towns.

A report by Staffing Industry Analysts, global advisors and market researchers, has noted that the Indian labour market is unique with 90 per cent of Indians working in the unorganised or informal sector, and only 10 per cent working in the organised or formal sector.

Of these, a large proportion (around 68 per cent) is employed in the public sector. The report has noted that out of India’s massive population, private sector employers are mostly sourcing skilled workers from a labour pool of roughly 1.3 crore workers, which is roughly equivalent to the labour force of Venezuela.

Commenting on the largest staffing companies in India, the report has placed Adecco, headquartered in Bangalore, as the largest staffing firm in India, with ₹1,460 crore in 2012 revenue, and holding 5.5 per cent market share.

The report notes that the last five years has seen the emergence of large home grown players with a pan-India presence, alongside global players who also have a sizable presence.

“The Indian Staffing Federation has predicted that the 13 lakh temporary workers now in the organised sector will swell to 90 lakh workers over the next 10 years,” said Adam Pode, Director of International Research at Staffing Industry Analysts.

“Some of the major international staffing firms that have come to India recognise the huge potential of the market,” he added.

The report estimates the Indian staffing market to be worth approximately ₹26.65 crore, broken down between permanent recruitment (12 per cent), temporary staffing (75 per cent), and various human resource solutions (13 per cent).

The top three firms account for approximately 15 per cent of the total market.