Study of temping industry in Indian context: prospects and issues

Abstract

Temporary staffing industry is dedicated to providing the organizations with the right workforce solutions to help organizations better manage their human resource requirements. It is a highly fragmented industry, with tremendous growth potential. The industry has contributed towards economic development of the countries worldwide because it positively affects the efficiency of any company's activities. The special pool of talented people can and should be transformed by a company s management team into its key to achieve the competitive advantage in the market. That requires finding the right people, for the right positions, at the right time. With the prevailing competitive market scenario the importance and relevance of this industry has increased manifold. This report tries to understand the temping industry, its evolution and its business model. No industry is immune to the changes taking place in its competitive environment and staffing industry is no exception to this. The rapidly growing and competitive trends in the industry are undergoing a phase of transformation and this phase is likely to give birth to new dynamics in this industry. What was the background to temporary staffing, what are the growing trends, what factors are likely to shape the dynamics of this industry and what factors are likely to turn into challenges for the players in this industry are some of the aspects that have drawn the interest of everyone who is associated with the industry. The paper discusses temping industry in Indian context, the dynamics of the business, challenges and opportunities for this industry Whether the companies should increase the verticals or the services provided or should they focus on certain niche sectors and concentrate on providing services in the respective identified areas, is a crucial strategic decision that has to be taken and it will also define a company s competitive edge in the market over other players in the days to come. An attempt is made to understand the strategic choices by taking an example of an Indian Temping company Team Lease. Further each strategic choice is discussed and recommendations for its future growth are outlined. The paper discusses about the internal challenges being faced by Team Lease and discusses ways by which Team Lease can restructure its organisation for effective advancement in to next stage of growth.