Recruitment is a global business generating revenue in excess of estimated $500 billion (INR 32 Lacs Crores) per annum which comes to around 25% of Indian GDP. It is growing by around 7%-10% CAGR since last 4 years.

Mix of global recruitment industry is as below:

70% revenue from Temporary Staffing solutions, 11% from permanent recruitment, 6% from RPO (Recruitment Process outsource) and 13% from other services.

Around 90% of global industry revenues come from the top 10 markets. China is the largest market followed by the US, UK, Germany, France, Japan, Brazil, Australia, Canada and the Netherlands.

Largest global players in the recruitment industry are Adecco, Manpower, Randstad, Allegis, Hays PLC, Kelly Services, recruit staffing etc.

Indian recruitment/staffing industry is growing by around 15%-20% CAGR since last 4 years. This industry is worth INR 35000 crore by revenue. Recruitment/staffing industry is divided in the threesegments as below:

  • Temporary/Flexi Staffing
  • Permanent Recruitments
  • Other Employment Services

Temporary/Flexi Staffing:

Firms which retain workforce and supply temporary workforce to companies for specific assignments falls under this category. This is the largest segment with market size of around INR 26,250 crores which is 75% of the total market size. This is primarily because pass-through cost of salary is included in the revenue. Largest players in this category are Team Lease, Ikyya etc.

Permanent Recruitments:

Sourcing, Screening and On-boarding of candidates from junior level to CXO level through consultants and referrals fall under this category. Size of this segment is around INR 4,200 crores which is 12% of the total market size. It includes the net fees only from each successful hiring. Largest players in this category are Adecco, Manpower, Randstad, Allegis etc.

Other employment services:

This segment primarily include payroll administration, Recruitment process outsourcing, HR Management and consulting, Employment trainings, offline job protals. Size of this segment is around INR 4,550 crores which is 13% of the total market size. Largest players in this category are Infoedge (naukri), Linkedin, Monster, Timesjob, ADP Payroll Outsourcing, Pocket HCM, Paycare etc.

Six major industries targeted by recruitment industry are

  1. IT & IT Enabled services
  2. Finance, Banks & Insurance
  3. Public administration and education services
  4. Retail Industry
  5. Retail
  6. Real estate