Temporary staffing fast emerging as a key hiring strategy in India: Official

VADODARA: Temporary staffing is fast emerging as a key hiring strategy for Indian companies and the segment is poised for strong growth over the next five years, an industry official has said.

"Temporary staffing is fast emerging as a key hiring strategy for Indian companies. The government should give proper recognition to staffing industry," said Mehul Shah, Managing Director and Head of Professional Services (India and Asia Pacific) of Collabera.

The US-based Collabera offers temporary staffing solutions for IT/ITeS firms. Collabera has opened its office in Vadodara for carrying out its Indian operations and employs about 1,000 persons here.

At present, the IT staffing industry is a Rs 1,200- crore market and it is going to expand rapidly over the next five years, Shah told reporters here yesterday.

Shah, whose firm is a member of the Indian Staffing Federation (IFS), said the staffing industry is growing at a rate of 35-45 per cent despite economic downturn in India.

The industry provides a platform for recognised employment, work choice, compensation, annual benefits and health benefits for the temporary workforce that constitutes almost 90 per cent of India's total workforce, he said.

Shah said he will soon make a request to Finance Minister P Chidambaram to exempt staffing industry from paying service tax.