There is a bit of a race on to put a stronger mark on the map. Employers in other parts of the world can’t seem to put butts in seats and are looking for help that spans multiple countries. It’s about diversifying the top line, improving margins with better products and nailing down mandates as global capability centres get bigger in the markets that matter.
It’s not all about tech anymore. Sure, AI and cybersecurity are in vogue, but you’re seeing a lot of movement in healthcare, engineering, logistics, manufacturing, construction and even hospitality. Having that kind of range is a good way for an Indian firm to insulate itself from one sector’s ups and downs and have more to offer a client.
They are zeroing in on places like the US, Europe, West and Southeast Asia. With workforce mobility on the up, it is easier to handle the red tape and put people in place, so for the big names, cross-border recruitment is becoming a no-brainer.
What is driving the overseas push
You have two things at play: your current global accounts want you to be in more than one country, and then there are local companies that are hiring over borders. “The mix is almost 50:50 on mandates coming in from our global existing clients and local in-market companies,” says Neeti Sharma, CEO of TeamLease Digital.
Then you have the structural voids. Yeshab Giri, who is in charge of commercial operations at Randstad India, puts it at 90% of the world’s labour shortfall being in some 20 or so countries. The US and UK will make up roughly 40% of the ask by 2030, and you will see growth in Eastern Europe, Russia, Japan, South Korea and Germany as well.
"India has become a core delivery hub for global employers,” Giri said. And that is a good spot to be in if you want to put together a team for any number of industries – from the shop floor to retail, food processing, IT and beyond – and do it in a way that is hard to beat on cost.
Shifting to higher-value roles
The nature of the work is in flux for the big players. “The clear shift is from volume general staffing toward high-skill professional and digital roles,” is how Giri sees it. That is where you have some pricing power and where you can hold your ground on a longer engagement.
It makes sense for the bottom line. Firms are counting on these kinds of solutions to be more profitable than just churning out headcount, particularly when the requirements for AI, digital engineering and the like get more involved.
Where Indian firms are expanding
TeamLease has a presence in the UAE and Singapore and is keeping a close watch on the likes of Japan, Australia, New Zealand, the UK and the US. They are after the kind of market where you see GCC-style build-outs picking up, and can connect what we have here with what is needed out there.
It is also about the corridors where a client is growing and wants one point of contact. You have the proximity of Southeast and West Asia, and the heft of the US and Europe. It is a way to have a varied portfolio without being too exposed to one thing.
Company strategies and revenue mix
Quess is reaping the benefits of its international arm, which is good for some 20% of the profit. West Asia is the main contributor there at 40%, with Singapore at 30% and the rest of the world making up the difference.
Geopolitics has put a damper on new sales in some ways, but Lohit Bhatia, group CEO of Quess Corp., is optimistic. “Mobility of skilled manpower is something that we want to look at very seriously in the coming years.” He points to construction, MEP, healthcare, aged care and technology as where you are getting the most action.
Adecco India is set to put more of an emphasis on the outside. “International business is a strategic growth priority for us,” says Peush Saproo, who heads up permanent recruitment. They figure they can get to 20-30% of their total from abroad in a couple of years, up from 10-15% now, thanks to multinationals and a wider array of what they can put in front of a client.
What comes next
If you ask the people in the know, the piece of the pie that is international will keep growing as companies go with more of a global model for their people. For an Indian firm, it is all about having the right domain expertise, being on top of compliance and having some solid partners on the ground.
Here is what to keep an eye on as these plans go further afield:
– The US and UK may well be 40% of the demand by 2030
– A move to the kind of digital work Randstad is talking about
– Some 20% of Quess’ profits are now from its international side
– Adecco is after 20-30% of its revenue from overseas
There is a lot to be had. When you have a labour gap in 20 countries and you can put the right skills in front of them, you get better terms and a contract that is harder to walk away from. The opportunity is there; it is a matter of who has the speed and the depth to make it last.
