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The HR industry in India has seen substantial growth in the past few years and is forecasted to grow even further as the 'The HR Solutions Industry Report, 2012', carried out by the Executive Recruiter's Association and Ernst & Young, indicates.
Particularly temporary staffing has benefitted from this growth as the value of this industry is now estimated to lie at around 172 billion Rupees (€2.6 billion) in which professional staffing accounts for 53 billion Rupees (€814 million) and general staffing for 119 billion Rupees (€1.8 billion). In comparison, temporary staffing on a global level lies at US$140 billion according to their figures. In India 2.5% to 3% of the workforce is expected to be on agency contracts in India in the near future.
The report also claims that permanent recruitment is valued at around 30 billion Rupees (€461 million) while the value of the search market lies in the range of 6 to 7 billion Rupees (€92 to €107 million), this being dominated by international firms trading in automobile, luxury, agricultural and food business expanding into new sectors and regions.
Temporary hiring is said to have a 73% market share while permanent staffing has 13% of the market, the report indicates.
“The Indian economic, social and cultural landscape is in the middle of unprecedented change. The need for solutions for complex problems of growth, innovation, and professionalisation is driving the opportunity for the HR solutions industry in a way that has never been seen before," said Amit Zutshi, Partner at Ernst & Young's Transaction Advisory Services practice.