Date:31/08/2005 URL: http://www.thehindubusinessline.com/2005/08/31/stories/2005083100920400.htm

Back 40 pc of temps turn permanent in a year

V. Rishi Kumar

Hyderabad , Aug. 30

ABOUT 40 per cent of temporary staff move on to permanent slots within 12 months of their assignments and this has emerged as one of the key aspects of the growth of temping as a service in the country.

The Vice-President of TeamLease Services (a staffing solutions provider), Ms Kavitha Reddy, told Business Line that there is a huge demand-supply mismatch.

Given the current momentum, it is projected that recruitment will continue to get tougher for companies as they grow in their existing centres in large cities but also seek to locate in new centres.

A `churn' (whereby more temps become permanent) increases liquidity in the job market. As a result, companies seek alternative staffing approaches. That is where temping comes to their rescue, as it offers an easier option to quickly induct people to address their project requirements, she said.

Ms Reddy, who heads the ReadyWorkForce group for handling IT and ITES services, , said that new sectors are increasingly taking to temping as an option. While the banking, finance , telecom, IT, ITES and FMCG sectors have been the mainstays of temping, the manufacturing segment is also adopting this practice.

Though the momentum is continuing for ITES services, within the mainline IT, there has not been much headway, as companies prefer to recruit by themselves.

Therefore, for areas such as human resources and other management functions, companies are looking at staffing services providers, she added.

TeamLease, which has 22,000 people on its rolls, is eyeing the slot to become the largest services provider by 2007. By that time, it expects to have about 55,000 people on rolls.

The company is not concerned about temping staff turning permanent. In fact, they serve as referrals for future inductions for Teamlease. Typically, about 10-12 per cent of the inductions are from referrals, Ms Reddy added.

ITES companies are faced with the challenge of finding the right people across new towns.

As more companies chase the same talent pool, data entry operators and even part-timers are in demand. For instance, women who would like to work part time or even a retired person may be considered.