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Indian companies, which have traditionally avoided using flexible staffing, are expected to embrace it from next year, resulting in dramatic growth for the industry, according to recruitment firm Randstad.
Paul Van de Kerkhof, Chairman of Randstad India, commented: “India Inc. should develop in the right direction. It will be a bumpy road. It will be a growing market in the long haul, say 10 - 15 years. We also expect a dramatic growth rate in terms of employees and their growth. The country has now developed the right conditions for flexi-staffing.”
In India the flexible workforce could be 40 time smaller than other more mature workforces. For instance, the penetration rate of flexible workers in the US, Europe, and Australia is between 1.5% and 4%, while it is at most 0.1% in India, reports the Financial Chronicle.
Moorthy K Uppaluri, CEO for Randstad India and Sri Lanka, commented: “Most of the companies are in a ramp-up phase and because of rampant fluctuations they were not keen on flexi-hiring. Typically this kind of hiring is considered for companies with more than 500 employees. Flexible labour is the need of the hour now.”
“Of the 750 million people in the working age, that is between 18 and 59, only 420 million people are employed. Of the employed people there are only about 42 million in the organised sector. In the organised sector there are 19 million with permanent jobs and 1.3 million people with tripartite (flexi-staffing) agreements.”