India Staffing and Recruitment Market to Grow at a CAGR of 13.2% to reach US$ 48.53 billion from 2022 to 2030

The staffing and recruitment market was valued at US$ 18.06 billion in 2022 and is projected to reach US$ 48.53 billion by 2030; it is expected to grow at a CAGR of 13.2% from 2022 to 2030.

Analyst Perspective:

Rising government initiatives to digitalize various industries, including oil & gas, real estate, banking, IT, and pharma, among others, are expected to create job opportunities during the forecast period. According to the All-India Council for Technical Education, approximately 60% of 8 lakh graduating engineers stay unemployed, while 39% of recruiters struggle to find skilled employees. To overcome this gap, the adoption of staffing & recruitment solutions in India is growing significantly., thereby augmenting the growth of staffing and recruitment market

The COVID-19 pandemic has accelerated the adoption of remote work arrangements among organizations due to strict government regulations in the country. Many businesses in India are still operating in a remote working model due to its benefits. Such a boom in remote working has accelerated the online staffing and recruitment process among employers and job seekers. For instance, according to SutraHR, companies in India have seen a 68% growth with remote working in 2023.

India Staffing and Recruitment Market Overview:

India has been facing unemployment issues, and the rise in competition and cost of living make it difficult for the unemployed population to find an excellent job with the right salary package. However, India's rapid economic development in recent decades led to the rise in the adoption of advanced technologies across all industries, which requires a skilled workforce. Hiring is increasing rapidly with increasing job vacancies in India. For instance, in August 2023, staffing companies estimated that ~60,000 jobs are likely to be created in India in the next 6–12 months to meet the workforce demands of leading mobile handset makers in the country.

Mumbai, Kolkata, and Ahmedabad observed significant growth in jobs from real estate and banking sectors. In Mumbai, there are ample job opportunities in different industries, from entry-level to the topmost positions. In 2021, Mumbai contributed more than 6% of the country’s GDP, which indicates immense job opportunities in Mumbai. According to the Employment Trend Survey (MSETS), approximately 7 lakh new job opportunities were created in 2020 by top public and private sector banks, pharma companies, IT firms, textile industries, production houses, and other sectors in the city. In 2020, the IT sector reached a total of 30 million IT professionals, while the telecom sector has a customer base of 850 million, and the healthcare sector created over 40 million new job opportunities in the same year. New job opportunities in the IT, telecom, and healthcare sectors require skilled staffing and recruitment professionals to hire an appropriate candidate as per job requirements. All these factors are expected to boost the staffing and recruitment market during the forecast period.

Moreover, with the advent of new technologies such as AI, machine learning, and blockchain, the demand for skilled IT professionals will grow significantly in the coming years. For instance, according to a report by Quess IT Staffing, the demand for skilled talent has increased across various industries in metro cities such as Bengaluru, Hyderabad, Pune, and Chennai between April and June 2022. This is likely to create significant growth opportunities for the staffing and recruitment market players operating in the IT industry in India. According to the same report, the country’s IT industry added 4,50,000 jobs in FY22. Hyderabad was the top recruiter of IT professionals among all metro cities in India. Hyderabad hired 23% of IT professionals, followed by Bengaluru (33%), Mumbai (12%), Pune (9%), and Chennai (5%). The high adoption of cloud-based technologies across the country, coupled with government initiatives to promote the adoption of advanced solutions across all industries, is expected to influence the adoption of staffing and recruitment services in the coming years, and will propel the growth of the staffing and recruitment market.

In India, the retail industry has emerged as one of the most dynamic and fastest-growing industries due to the entry of new players. According to World Bank’s Doing Business 2020, India is the world’s fifth-largest destination across the globe in the retail space after the US, Canada, Germany, the UK, China, Japan, France, Australia, Switzerland, and Italy. The Government of India is attracting several international companies to set up their base in the country by liberalizing the FDI policy. Growing digitalization in India is creating new job opportunities in the retail sector, which require staffing and recruitment services to recruit and hire the right candidate. Thus, the above-mentioned factors contribute to the growth of the staffing and recruitment market. 

According to the Department of Commerce, Ministry of Commerce and Industry (Government of India), in 2021, the country reached 1.2 million daily e-commerce transactions. It is expected that online shoppers are expected to reach approximately 500 million by 2030. Also, the e-commerce market is expected to generate a gross merchandise value (GMV) of US$ 350 billion by 2030. The growth in the e-commerce and retail industries requires manufacturers to produce large-quality goods to manage inventory. The staffing and recruitment services and solutions help employers to hire skilled candidates. Employers can also take the benefits of staffing and recruiting agencies in accelerating the hiring process in a cost-effective manner. Such factors are estimated to fuel the need for staffing and recruitment solutions among manufacturers in the coming years. Thus, such instances propel the growth of the staffing and recruitment market.

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India Staffing and Recruitment Market: Strategic Insights

Market Size Value in	US$ 18.06 billion in 2022
Market Size Value by	US$ 48.53 billion by 2030
Growth rate	CAGR of 13.2% from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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India Staffing and Recruitment Market Driver:

Huge Job Opportunities in BFSI and Technology Sectors Drives India Staffing and Recruitment Market Growth

The IT staffing and recruitment market has been growing rapidly in India. The banking, financial services, and insurance (BFSI) sector in India witnessed strong growth in February 2023, with a 27% year-on-year increase in job postings, according to data from the online hiring platform Monster. The demand for BFSI professionals has increased, with finance-related roles accounting for approximately 8% of all jobs on Monster, according to Monster data, as of 2023. Moreover, the BFSI and telecom sectors in India are experiencing a substantial rise in job opportunities, driven by digitization, payment innovations, and increased penetration of financial services, as well as the upcoming rollout of 5G. According to the Monster Employment Index, as of August 2022, the BFSI sector recorded a rise of 25% in hiring, while the insurance sector of India witnessed a 21% growth month in July 2022. Thus, growing insurance sector propel the growth of the staffing and recruitment market.

In the BFSI industry, IT roles account for about a third of all new jobs, owing to increasing demand for development in IT management and IT analyst roles. According to Project Management Institute, Inc., vast vacancy for project management positions is expected to open in the coming years, while ~2.3 million employees are needed to fill every project management-oriented position each year. Companies are focusing on hiring problem solvers and relationship builders to deliver strategic value by remaining competitive in the market, which requires staffing and recruitment professionals to fulfill these positions. According to the Times of India, as of July 2023, tech hiring in the IT sector has experienced green shoots of demand, with a 10% increase in overall hiring requirements compared to June 2023. Thus, huge job opportunities in the BFSI sector drive the staffing and recruitment market in India.

India Staffing and Recruitment Market Analysis:

The India staffing and recruitment market is segmented on the basis of staffing type, recruitment channel, and end user. The India staffing and recruitment market, based on staffing type, is divided into temporary and permanent. In terms of recruitment channel, the India staffing and recruitment market is segmented into online, hybrid, and offline. Based on end user, the staffing and recruitment market is segmented into IT & telecom, BFSI, healthcare, real estate, and others.

India Staffing and Recruitment Market Segmental Analysis:

Based on staffing type, the India staffing and recruitment market is segmented into:

• Temporary
• Permanent

The temporary segment held a larger staffing and recruitment market share in 2022. Temporary staffing refers to hiring employees to work as freelancers or on a contractual basis. Short-term needs of organizations are usually fulfilled by temporary staffing and hiring candidates with special skills for a specific period. Temporary hiring allows organizations to test candidates and evaluate skills and potential to perform different roles before offering them a permanent position. Temporary workers play an important role in India’s economy. Companies are directly employing temporary workers for limited periods to meet their business needs. Per a report by the Indian Staffing Federation (ISF), the temporary staffing industry is expected to reach US$ 6,016 million by 2025.

Key Player Analysis:

The India staffing and recruitment market analysis is based on the annual performances of major players such as Quess Corp Limited, TeamLease Services Limited, BigLeap Technologies & Solutions Private Limited, GlobalHunt India Private Limited, Careernet Technologies Pvt. Ltd, ABC Consultants, Innovsource Services Pvt. Ltd, PeopleStrong Technologies Pvt Ltd., Uplers Solutions Private Limited, and Focuse Management Consultants. Several other essential India staffing and recruitment market players were analyzed to get a holistic view of the market and its ecosystem.

India Staffing And Recruitment Market Recent Developments:

Companies in the staffing and recruitment market in India focus on both inorganic and organic strategies for their business growth. A few recent key market developments by the above staffing and recruitment market players are listed below: 

• In 2023, The hospitality industry staffing platform Shiftz launched in Delhi to revolutionize the hospitality industry's staffing process. Shiftz is a completely integrated system that uses intelligent profile matching to help companies find the most relevant on-demand worker.
• In 2022, Quess developed an in-house digital platform, QJobs, that helps them to find jobs quickly and in a transparent manner. The platform received 3.5 million registrations from job seekers and 2 million registrations for job openings. The platform is developed to meet the increasing demand for job opportunities amongst blue-collar job seekers.