Manpower outsourcing thrives in India

When there's a need for need some skilled people for a short-term project, who are CEOs gonna call? Of course, the guys back there at the HR department.

In India, however, the ball keeps rolling further. The HR guys call on manpower outsourcing companies to do the dirty work of hiring employees when needed.

The outsourcing consciousness has led many Indian companies to rethink about their recruitment process and outsource non-core processes.

And as companies are becoming aware of their core and non-core areas, they are least interested in direct recruitment for the peripheral jobs. After all, the usual mindset is that headcount is directly related to revenue.

Some enterprising companies have capitalized on this consequence and engaged in manpower outsourcing, reportedly a thriving business in India.

In a nutshell, manpower outsourcing involves providing personnel to the companies for a contracted period. These personnel are on the HR consultant's payrolls and enjoy normal employee benefits.

At the moment, it's still quite a low-key business that involves a few major players. An estimated 15,000 to 18,000 employees are reportedly employed through this model.

The trend has been most popular with multinational companies, since they prefer to outsource since it takes a lot of time to get the necessary sanction for recruitment from the Ministry of Human Resource Development

Moreover, if the employer and even the employee see that they are not matching work demand, they can easily switch jobs without the hassles that usually go with it.

Manpower outsourcing is actually not a new concept. Professional staffing services is an established business in many other countries.

But the rise of outsourcing has highlighted its relevance in addressing the industry's needs.