Labour reform need of the hour to the growth of staffing industry in India

Feb. 29, 2012 - PRLog -- Indian Staffing Federation (ISF), an apex body of the temporary staffing industry in the country, yesterday unveiled a detailed discussion paper that outlined the contours of the growing staffing scenario in India.

Besides detailing the major challenges facing the industry, the paper also outlines its recommendations to address and overcome the same. ISF also announced on the occasion that this discussion paper will be presented to key Indian Government bodies and other relevant authorities for further perusal and consideration. The discussion paper comes at a time when the Indian staffing industry is posting significant growth of 10-15 percent year-on-year and has the potential for even higher growth given a more conducive regulatory environment.

K Pandiarajan, President, ISF said: "The time is ripe for seriously looking at staffing as an industry in India. And all the more, after staffing is playing a huge role in providing decent work to many across the globe in time of uncertainties.  Staffing Industry has the potential to create millions of jobs in India too if supported by conducive laws and regulations. Also, the industry can play a huge and active role in supporting the government with respect to skilling our labour force. This discussion paper is a step to sensitise the key stakeholders about the challenges this industry is facing and recommendations to alleviate them. It is truly comprehensive and marks a milestone forward for the industry at large."

Pandiarajan said the senior executives of ISF would present the issue paper to relevant central and state ministries over the next few weeks to ensure this was perused and considered in various policy discussions would take place at different levels. Labour reforms are crucial and key to the growth of staffing industry in India, and this initiative by ISF is to facilitate the change through an objective process of education and awareness.

Basudev Mukherjee, Executive Director, ISF pointed out: "This issue paper from ISF’s stable is an attempt to shed some light on various short and long term issues faced by the industry. What is more, one of the many issues that we have raised is the issue of Service Tax, which is a big concern for most of the companies in the services sector especially, the Staffing industry where it puts a lot of pressure on working capital as the margins are very low".


Indian Staffing Federation, ISF has been founded by leading staffing companies with one common goal - Staffing India's Growth. While being an established form of outsourcing, temporary staffing in India is yet to be recognised and adopted as an effective means to running a business. With a penetration of just two, ISF is championing this industry, with suitable and supporting regulation. The Staffing Industry provides a platform for recognised employment, work choice, even compensation, annual benefits and health benefits for the temporary workforce that constitutes almost 70 percent of India’s total workforce.

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