Recruitment services to grow at 8.3% till 2009: IDC

New Delhi, Nov 20 | Updated: Nov 21 2005, 05:30am hrs
The market for talent acquisition and staffing services will undergo solid growth till 2009. According to an IDC study released this week, the worldwide spending on recruiting and staffing services will experience a compounded annual growth rate (CAGR) of 8.3% during 2005-2009. Total spending on recruiting and staffing services in 2004 grew 10.8% over 2003.

North America fuelled much of the growth for talent acquisition and staffing services. The US held the largest share of spending with 10.5% growth in 2004, and will lead the growth chart throughout the forecast period. EMEA (Europe, Middle East and Asia) stands as the second largest region in terms of spending.

Lisa Rowan, programme manager for IDCs HR and talent management services, said: The war for talent is re-emerging and employers are realising that a high performing workforce is key to competitive advantage. Suppliers are responding with new strategies and offerings to help them win the battle. All areas of talent management are experiencing growth, and sourcing and staffing are no exceptions.

Robert McNabb, executive vice-president, Korn/Ferry Intl told FE: Business in India and China will continue to grow at a high rate due to huge demand for manpower. Companies are preferring to outsource end-to-end solutions, as it saves them time and money.

All global majors of staffing are making forays in India. The worlds largest staffing firm, Manpower has partnered with ABC Consultants. Vedior has acquired MaFoi while Adecco has acquired PeopleOne, to conquer the highly lucrative Indian market. On Friday, Korn/Ferry floated its new subsidiary FutureStep for mid-level staffing solutions. The IDC study on staffing analyzes emerging market trends and technologies, and examines the performance of over 40 staffing and talent-related vendors.