The Rise of Temps

A recently published report by Teamlease, the largest
recruiter of temps in India, says that the IT and BPO industries hire the
largest number of temps in the country. Temping, as it is commonly known today,
is a simple procedure of getting work done without actually keeping the worker
on the payrolls-companies such as Teamlease, hire and pay these employees for
a fee from the organization.

Temping has been around for over five years now in India,
but peaked in the last two years. Today, the organized sector has 1.2 lakh
temps, with a potential of 12-15 mn yet to be tapped. Typically, it is support
functions such as administration, accounts, HR, and sales among others that get
temped out. The IT sector has been growing at a fast pace and this kind of
growth needs huge support and this partially explains the rise of temps. Then
there is the aspect of managing short-term costs in a most effective manner.
Says Srinivasa Rao Kandula, director-HR, Sasken, “Non-employees facilitate
higher utilization effect on a short-term basis keeping headcount number in
control.” Sasken today has 262 temps, which is nearly 11% of its overall
employee base. Adds Prashanth L J, global marketing head, Infinite Computer
Solutions, “In case of a temp hire, the cost of advertising, recruiting,
screening, fringe benefits, unemployment insurance, workers' compensation,
even potential employment litigation, are eliminated or substantially
reduced.”

There are a couple of factors that make a temp job more
attractive. For one, the possible opportunity for a Tier II or Tier III
engineering today to move into some of the best-known organizations, which under
normal circumstances hire only the best. Says Ashok Reddy, managing director of
Teamlease, “A motivational drive works for freshers from relatively lesser
known institutes, who hope to move in to some of the biggest names in the
industry at a later stage.”

According to industry estimates, while 44% of the temp
workforce moves in to permanent job roles later, 20-22% get absorbed in the same
organization.  

Then there is the narrowing differential in compensation
between a temp job and a permanent one. A Hewitt Compensation Survey this year
found 12-15% average increase in pay last fiscal, while the Teamlease study
reveals 15-16% hike for temps. Entry-level salaries are again on the same plane
unless one has passed out from a top-notch institute. The IT and ITeS industries
often command a premium based on the skill sets required and employers are
willing to pay that extra for the benefits they get from temping.

Today Delhi and Bangalore have emerged as the biggest hubs
of temping in the IT industry. While Bangalore is referred to as the IT capital
of India, NCR has come up as the BPO capital. However, there are newer
destinations emerging for temp jobs in IT. The temp job market is picking up in
Hyderabad, Pune, and Kolkata.

A hot area of temping in IT is networking. Typically,
engineers or diploma holders from second and third tier institutes are
preferred. Reddy expects agent level profiles to be the next big thing for temps
in ITeS.

Flexibility, challenge and versatility of the job and some
good bucks are drawing more and more young people to temp jobs today.
Internationally, temping is largely a lifestyle statement where people go for
temp jobs by choice. “While this concept may take time to evolve in India, an
increasing number of people are expressing their willingness to shift from a
perm job to a temp one,” says Reddy. So next time you come across a
self-confessed temp code jock, don't look shocked.

Bhaswati Chakravorty

bhaswatic@cybermedia.co.in