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Monday, February 1, 2010

Indian Recruitment Industry - An Overview

Indian recruitment companies can be divided into 5 types:
  • Recruitment Consultings (Permanent)
  • Staffing companies(Contract)
  • Executive search firms
  • Software companies also sending employees on contract
  • Recruitment process outsourcing (RPO) companies
Recruitment Consultings: If you search in any metro city in India you find thousands of small consultancies who work on lateral reqs. In most of the cases they operate in small officies with employee strength of 5-15. Such consultancies are generally dependent on some specific big MNCs, who dont care where the resumes are coming from. Whoever closes the position gets the commission. Now the sources of resumes are same for all ie: Job boards and service is also similar- which increases the compitition further.And due to too much of compitition consultancies agree to work for very less commission- in some cases 4-5 % also. As they are playing in very less margin, they can't hire good recruiters and neither they can aford to pay recruiters well.Recruiters dont get proper training, which affects performance and their service to candidates.No surprises that many candidates complain of bad service from consultants.

Apart from these There are few 100+ strength professionally managed recruitment firms, who maintain quality in terms of service to clients and candidates and create a brand for themselves. Even they manage to get premuim commission due to their service.

Staffing Companies: Staffing companies basically keep people in their payroll and let them work with client for specific contract. Here the company charges some specific amount every month for the candidate frm the client. Due to volatile market scenario especially after recession Indian companies are getting more and more eager to hire people in contract through some third party vendors. This is  helping in booming of such contract staffing companies. Salary standards for recruiters are not very great here also. But this trend is going to pick strongly in future because it suits to market situations. Contract staffing is very popular in manufactoring and services sector.

Executive Search Firms: Again in india executive search firms have generally a strength of 5-15 people. But in this case they hire for very high level candidates ie: CEO, Marketing head etc , so revenue is quite premium. Basically experienced people from diverse sectors join executive search firms and use their network to close positions.Their compensation is best when compared to  recruiters in other types of recruitment companies.

Software companies also sending employees in contract: In bangalore especially you will find many companies where they have their software devision where they work on client projects, At the same time they send employees to client place as contract employee. There are many small and big companies in this field.

RPO companies: There are not many companies in india which works exclusively on RPOs. Mostly big consultancies take it up as another practice only. RPO is also another sector which is  picking up fast in India.


Whatever may be the type of offering, We want more big size professionally managed recruitment firms in India, which can help in building standard practices, set new benchmark in terms of service, bring in new innovation in recruitment processes and can attract good candidates to join recruitment industry by offering good career prospect.

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