Global HR bets on India despite slowdown

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Mumbai: In the current scenario where there is recruitment freeze and lay off is the buzz word, foreign consulting firms are betting big on taping the immature Indian recruitment market, which is largely driven by the companies’ in-house HR teams. Hays plc, a global specialist recruitment company on Tuesday announced its foray in offering recruitment model to Indian clients and candidates.

“The Indian recruitment market is estimated at around £250 million in net fees and is very fragmented,” said Alister Cox, chief executive of Hays.

Meanwhile, not only recruitment firms but international HR consulting firms like BlessingWhite and Right Management also entered India in the past either via tie-ups with domestic firms or by setting up their own offices in the country.

However, is this the right time for them to approach new markets? This is an area of concern as the existing search firms in India are witnessing a dip in revenues by 25-30% and shrinkage of fees by about 15% to 20%. Also, the competition is getting intense.

According to Cox, “India is the 12th largest economy in the world but has virtually no specialist recruitment sector, despite the exponential growth in its professional and skilled work force. Opening in India is a key step in our expansion strategy.”. The New Jersey-based BlessingWhite entered India via a strategic tie-up with domestic player HRAnexi in 2007.

Similarly, global consultancy firm Right Management in November 2006 acquired 67% stake in Grow Talent, a leading HR consultancy firm in India, to ramp up its operations here.