MSME – segment of opportunities for Temporary staffing

Posted by:  | Jan 22, 2014 | Post comments
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MSME 300x300 MSME – segment of opportunities for Temporary staffingThe small and medium segment enterprise will fast emerge as the largest recruiter in the Country.  It is already emerging as such.   And there is a need for HR services companies to have a clear strategy to target this growing segment with a bouquet of services offering.   Predominantly in Manufacturing and specific to engineering and infrastructure, the MSME segment has already been a big consumer of HRO (HR Outsourcing Services).   Prominent amongst them are compliance services,  record maintenance,  HR advisory and incentive based recruitment services.     Many of these organizations have entrepreneurs who are professionals and have a clear vision on way forward.   Many of them have worked before turning into entrepreneurs themselves.  Well-connected  and deeply rooted, the MSME segment is a much talked about but little penetrated segment by HR Services Companies.

More jobs will come from small entrepreneurs in the next decade than from govt, large firms” says Sam Pitroda .    http://www.financialexpress.com/news/small-entrepreneurs-key-to-job-creation-pitroda/1219208

The Action for India (NGO) recently organized an event on “Building Social Innovation Ecosystems for Mega Impact” in Delhi recently.   It brought over 100 social innovators to connect with various stake holders like investors, CSR processionals, Bearcats and Government Officials.     During this meeting the role of small and medium enterprise was discussed at length in terms of the opportunities opening up in this segment.

Till now, Temporary staffing has been more focusing on the number game in India.  Though in the IT staffing, it was happier doing smaller numbers and higher margins.  And probably the MSME is now opening up.   There are various strategies that the Temp staffing companies can focus on.   It could be  a build operate and transfer module,  or it can be a recruit and on board model,  it can also be facilitating overseas professionals coming into India, and offering services and on boarding etc.,   It would be interesting for the temping industries to work on a clear road map to tap into this opportunity with a  meaningful value proposition, that is not price based but quality of service based.   Temporary staffing is very matured in most countries, but in India, it sadly remains a commoditized services with very less value adds.  There could be exceptions to this, but these exceptions are very limited and majority of the temping is in large industries and brands only and not the small companies.

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