Indian firms prefer temporary staffing to cut cost

Indian firms prefer temporary staffing to cut cost

By SiliconIndia   |   Tuesday, 30 December 2008, 05:25 Hrs   |    8 Comments
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Indian firms prefer temporary staffing to cut cost
New Delhi: In the past, temporary staffing was considered only for the low-level positions of a company. But, current days witness a change from that trend as firms now focus on temporary hiring than permanent appointments to reduce cost during tough times, reported The Economic Times.

Retailers, business process outsourcing providers and project-led organizations and industries have already started focusing on contract staffing, while new sectors such as energy, healthcare and pharmaceuticals are all set to hire contract employees with specialized skills and for managerial roles.

According to recruitment firms, temporary appointments are being recognized in difficult economic times as a good option for financially-smart companies, helping them take on more time-based assignments while reducing the cost of permanent hiring. Firms see temporary employees as cost-effective as they don't require giving benefits that they offer to permanent staff normally. The companies can also alter the size of its workforce depending on business needs.

TeamLease, a Bangalore-based temporary staffing firm says it has seen a 20-25 percent increase in demand for temps from industries such as energy and healthcare, while Chennai-based Ma Foi put the growth at up to 15 percent.

Though temporary hiring is a well established model globally, there is a perception in India that temping is mainly for low skill positions. However, staffing providers opine that the mandate of job descriptions and salaries leads them to believe that the silver lining in the job market is the rise and recognition of the model.

"It is almost like an awakening," says Rajiv Mehrotra, Country General Manager, Kelly Services India. And new sectors hiring temps have also raised the quality bar.

E Balaji, CEO of Ma Foi Management Consultants pointed out, "We see this more because several companies now want people with specialized knowledge even when it comes to temps." This is happening across sectors and not just those hit by the global slowdown.

Prabir Jha, global HR head at pharmaceutical company Dr Reddy's Lab mentioned that while temping is more common at the junior level, they have a few consultants at senior levels as temp staffers.

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Reader's comments(8)
1: People wont stop living even when the circumstances are bad and In a cycle there is a room for every thing like good, bad, worse and most worse and so on. We can expect the best before starting any work and should concentrate on only target irrespective of the possible outcomes and they should be considered as stepping stones and not stumbling blocks. People who enjoyed during good times should also accept the same during tough times. Any How hope the best and hope that all is well that is being and ends well. Now its time to accept the thing and we all should try much harder than before and reach the success. As the cases states that only few people are coming and not all why we shouldn't be the one who is not coming out. As chinese proverb says the oppurtunity comes in disguise.
Posted by:V.V.S.Vamshi Krishna - 12 Jan, 2009
2: Its good to think positive,but keeping into the present scenario its difficult to see such a sudden growth>>

Posted by:Praveen Kumar K - 31 Dec, 2008
Posted by:RANJEET - 30 Dec, 2008
4: Please dont spoil Indian soil by getting such stupid ideas from west we just implement the jist of it which is good for the corporate to raise their profitablility. Note that Western countries have very strict and straight forward rule for employees which we donot have and than this corporates misuse those think what happened with Call center it was all this members only giving their great thoughts and spoiling carriers of bright youngster by giving them 5 figure salary. Please stop it its spoiling we need stable life.
Posted by:Sumit - 30 Dec, 2008
5: I don't agree that temporary employees work with a hope that one day or other he become permanent, If you consider the business model of other countries then you can find lot of workers like to be in a temporary job (contractors) because the salary is much better then permanent employees.
Posted by:sudhanshu - 30 Dec, 2008
6: the opinion is worong and it will create discontent in the mind of temporary employee and he will became reacted and the efficiency will decrease as the employyews mind will cnot cooperative as the work is in hand to work. temporary employees work with a hope that one day or other he become perment and it will create to toil further in the company . so it is better to make the employee permanent.
Posted by:pp.r.malleswara rao - 30 Dec, 2008
7: Good morning India... Only in crisis people wake up! I think we need to be more proactive in our approach and not brag when we are in damage control mode.
Posted by:Misfit - 29 Dec, 2008
8: actually a good method of cutting the stereotype is not there anymore regarding temporary works...people are ready to do do in this present crisis.
Posted by:kraiya - 29 Dec, 2008