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India – Staffing firms struggle as hiring remains low

23 October 2012

The Indian labour market may be growing in some sectors but large recruiters such as TeamLease, Kelly Services and Adecco have recorded sharper falls in hiring when compared to previous quarters.

“This is the worst we have seen since April last year and permanent recruitment is at least 15-20% lower than the same period last year,” said Sangeeta Lala, vice president and co-founder of TeamLease to the IndianEconomic Times.

“Clients have not declared a hiring freeze, but are very selective in their hiring. This makes it more difficult as we cannot have any costs invested in our business and do not know when a demand comes in or stops,” she said.

While hiring tends to be slow in the fourth quarter, Adecco India managing director Sudhakar Balakrishnan told the paper that the staffing firm had seen “a 20-month low in hiring.”

Kelly Services also agrees. “We did not manage to get the lift that we were expecting after changing our business plans,” said Kamal Karnath managing director of Kelly Services India. The firm did increase its business by +15% but this was 30% below expectations, according to Karnath.

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