Moorthy K. Uppaluri, Managing Director & CEO of Randstad India, is bullish about the increase in the number of temporary workers, known locally as flexi-workers, working for Randstad, according to an interview in thehindubusinessline.com.

Mr Uppaluri stated: “We are excited with the opportunity that India beholds for multiple reasons. Typically, when there is uncertainty, whether it is GDP or growth rate, a leading indicator that the economy has taken off is the flexi-staffing.”

“Whether it is manufacturing or knowledge-based industry, when there is a sudden growth that the industry is experiencing, they will go with flexi-workers instead of permanent staff until they are sure that the growth trend will sustain. The moment the growth is coming up, clients would tell us they need a few flexi-workers.”

“Once the growth is sustained, then they will say can we have them as permanent workers. So, there is a conversion that happens from flexi-staff in Randstad’s rolls to permanent staff in client’s payrolls.”

“This industry will remain fertile and flourish despite the volatility in the economy. When the economy is doing well, there are more jobs and people want to grow by shifting jobs.”

He continued: “When the economy is not growing, companies will retrench people who in turn will search for jobs. Even in a lukewarm economy, people want to explore as they may feel it is muted or stalled growth in a company and would like to change the job for better pay. So, there is a flux and mobility.”

He continued: “There are about 1.7 million flexi-workers of which we [at Randstad] have 60,000. Conventionally, in India, flexi-staff is at the base of the pyramid or [on low wages].”Although this convention is being disrupted by growing demand, especially from start-ups.

Mr Uppaluri explained: “We now have an opportunity to penetrate the mid-level professional jobs like finance manager, accounts manager, or vice presidents.”

“There is a huge demand in these categories, especially from start-ups that require such senior persons for short duration, while setting up the company. In the US, there are part-time CIOs, CFOs, doctors and engineers. Such high wage flexi-jobs need to be penetrated in India too.”

Mr Uppaluri explained Randstad’s role: “We find the right talent who can give certain amount of time and looking for flexibility. And, on the other side, there is a demand for such part-time. We match them. This is an important trend that is beginning to happen, which will be important and critical for the growth of the start-up ecosystem.”

“[This is important] because in the IT industry, the next Google or Microsoft, or in the pharma, the next Abbotts or Mercks should come from India. We need innovation and the ground is very fertile with a very good start-up ecosystem. And the talent bottlenecks can be overcome with the flexi-staffing.”

“This means, there will be flexi-staff in the top, middle and the bottom of the pyramid. This trend will grow with “Made in India” and “Digital India” programmes of the Government. These will create more jobs in these lower and mid sections, and we need to climb up. More flexi-jobs will be permeated in the entire pyramid.”

He feels that temporary staffing has not picked up in India due to the stigma attached to it but that looks set to change: “For a population of 1.4 billion, the penetration of tri-partite flexi-workers – meaning a three-way arrangement with the client requiring a flexi-worker who will be our [pay]roll and deployed with a client – are 1.7 million. It’s almost one for every 1,000.”

“However, in developed countries like the US or Netherlands, France, Germany and the UK, it is four out of 100 is a flexi-staff. When we grow nearly 40 times, then we can say we are in the same league. The growth potential is immense,” Mr Uppaluri concluded.