The figures from India may not be that impressive. Monsterindia.com has a database of 6.8 lakh resumes and is used by 1,100 companies. The encouraging news, though, is that the site receives 75,000 new resumes a month.
In a business that is about volumes and scalability, penetration is the key issue. Launched in 1994, the career website had the advantage of being the first mover and rode the job-hiring boom in the US between 1997 and 1999.
In India, the matrix may not be large enough. A serious limitation is that job seekers using the Internet come primarily from the IT community while the manufacturing sector largely remains out of it. Internet users are much larger and more broad-based in other countries. The non-IT profile using Internet is very low in India. Within IT, business process outsourcing accounts for only 5 per cent for us... Resumes will not be important in hiring such personnel. Besides, the volume needs for such companies are large, says Mr Tadanki.
Being a late entrant in India, Monster adopted a segment-wise approach, focusing on software and IT. We want to take a dominant leadership position in this segment. Then we will look at other categories, Mr Tadanki says.
In two years, the company plans to hedge between manufacturing (which is large and existing) and banking and financial services (that is fast growing). It will be a dual approach to drive growth. Other upcoming segments include pharma, biotech, retailing and education.
The Internet recruitment business in the US and Europe is already strong in the health care and government sectors. Monsterindia is trying to expand operations through the government. It has made a start with the Andhra Pradesh government and is involved in the APFIRST (Agency for Promoting and Facilitating Investment in Remote Services and Technology) project. APFIRSTs new Internet initiative, directed at providing employment to graduate talent in IT-enabled services (ITES), has been implemented in collaboration with Monster.
On the site, apfirst.monster.com, graduate job seekers can store their resumes online to be viewed by potential ITES employers. The government rates candidates through an examination conducted by an external agency. Job seekers feed in their scores secured in the Graduate Employability Test (GET), which is the new benchmark for ITES careers.
We are targeting other states which are more inclined to invest in IT or e-initiatives, says Mr Tadanki.
For supporting such a huge global database, Monster has developed its own technology. The Monster Global Network is housed in two fail-over data centres on a central core of Web servers in the US. Each data centre contains approximately 200 file servers powering the Monster Global Network. Monster has five T1 communications links from both data centres to promote increased latency and availability of each international Monster site.
Each Monster site around the world accesses a central database of information that presents localised content to each of its international sites. Monster is standardised on MS-SQL server as the database to house all job, resume and recruiter information. The Monster Global Network is standardised on Microsoft software for its networking model, comprising 20 sites around the world.
Although Monster has invested in technology and database design to run their database as a central global resource, each country is responsible for localising the language, look and content on their sites.
Monster has two main sources of revenue. Companies pay Monster an access fee for searching its resume database. The charge from a single licensee for using the database is Rs 1.8 lakh. The second stream is from companies who advertise jobs on the site. Almost 95 per cent of our revenues come from these two sources. The resume search, however, accounts for the bulk of our revenues, says Mr Tadanki.
In the US, job ads form the bulk of the revenue. In India, companies prefer to search through our database, says Mr Tadanki.
There is good news for job sites. Research shows that job search is among the top five usages among Internet surfers. About 20 per cent of Internet users in India use it for job search, below e-mail and chat. This is in tune with the global trend, where job search is used higher than for news and music downloads.
For monsterindia.com, a majority of recruitment is done for middle-level positions with 3-7 years of experience. Monster has the advantage of using the Indian database for overseas appointments. There is a huge demand for Indian database from US companies, particularly for IT professionals. We are not too bothered about the local market. We are in a position to move the database around the globe. It is an extended opportunity for us, says Mr Tadanki.