Wednesday, January 03, 2007

Indias largest private employer in the future?

No the projection is not for TCS nor Infosys nor is it an automobile company, nor is it a bank nor is it Reliance or Tata Steel or Airtel. The name of the company is Teamlease, if it maintains its current scorching pace of growth. (The company could become the largest private sector employer in India in 2007; currently it is Tata group as a whole)

Did you say duh? "But there is no Teamlease car or bank or tyre or phone or any product. Atleast not as far as I know."

Thats because Teamlease is a staffing company. They maintain employees on their rolls and send them out on contract to other firms who require them. If Variable capacity is your question, Teamlease (and similar firms) is the answer.

Interestingly Teamlease is a product of gloablization and was set up as recently as 2002. Prior to companies like Teamlease, it was an unorganized market with workers being exploited and middlemen having a field day. (Sounds familiar? Our farming sector is in the same shape today.)

So manufacturing firms as well as IT firms can take people on contract without worrying about Indias labour laws. To say that temp staffing companies can solve all the problems is far fetched, but the fact that has risen to this extent (as has the temp staffing industry) points to how much more employment we can suck in. And to those who feel like crying 'exploitation', please note that Teamlease was founded in 2002, when India was already into its first few steps of globalization (we havent moved too much from that spot, but the industry has) and Teamlease trains its employees and makes them employable.

Notice this on Teamleases industry verticals page. They are mostly into white collar jobs than blue collar jobs - whereas thats the area with the greatest potential - training people with vocational skills to make them industry ready. Also read their White paper on "Case for Temporary Staffing Reform To Reduce Unemployment" and "Indias labour report 2006". If our labour laws were simplified, industries could absorb so much and move away from the disguised unemployment that we are known for.


Sasi Kumar said...

informative thanx

One More Reason said...

I am not sure if contracting will solve all the problems. Contracting brings with it, the biggest issue, that of employee engagement. IMHO, IT companies in India need employee engagement the most these days and that is key to high quality output