Question : Want to Start A recruitment Agency.Some Doubts.

Hi all,
Am planning to start a home based recruitment firm, I know its recession, How're the recruitment agencies doing, Which segment should I target? Is it OK if I target Indian Firms ?
Can any recruiter reply?
With Warm Regards
Pranay.

Pranay,
Let me know which location you are planning to open this recruitment firm. In recession a lot of recruitment firms closed down or they had to trim their size to a large extent to be in business.

Even though market has started recovering from recession & economies have started picking up but still a lot of companies are in a "wait & watch mode" before they start hiring again with a full pace.

Because of this a lot of recruitment agencies are still struggling to be in the race of existence whereas there are recruitment agencies who have started doing well who are/were working in some specific sectors.

In a time like today my suggestions will be don't bifurcate between MNC's & Indian firms. Quite a few Indian firms are doing better than MNC's. Also understand its business & YOU are planning to START it & not very well established so try to start working wherever you think you can get Business from. After all Business Is Business & Revenue is Revenue no matter where you get it from being it from Indian or MNC.

Some segments you can target are FMCG, although hiring never remains too high in FMCG business but it is one sector who is steady enough to keep giving hiring requirements to you & also if you are able to get good clients.

Telecom is another sector who even in a time of recession was doing very well & this you would have also read in the newspapers. So if you can target that.
Another sector which you can target is OIL & GAS but that requires really specialized hiring.

If you think that you really have the potential & other requisites then you can tap BPO/Insurance hiring. Although it requires huge efforts & revenue also remains low doing that but they are more reliable sectors to get positions all round the year and possibility of getting people placed remains high.

Let me know if this helps.

Thank you Sir for the real scenario and the help, I am planning to start in New Delhi.Will do exactly as suggested. As for the BPO , dont have the T&C what is the procedure , do they have the free replacement guarantee(Very high attrition) and 8.33 remuneration charge?

Pranay,
Different BPO's have different clauses while working with consultants. Can't tell you something which is standard. But I have seen 2 things in BPO hiring :-

a) Quite many BPO's dont give consultants 8.33 % for their placements because the number of hires remains so high all the time.So its about making money through mass placements. Companies usually fix it on a Rs.8000-10000 per candidate irrespective of the fact what is the CTC being offered to the candidate.

b) Yes they have a replacement clause which according to industry standards is 3 months but based on the relationship with the client I have seen consultants who have managed to get the replacement period to 1 month.

There is nothing specific T&C realted to BPO hiring. Changes are usually in Fees and replacement period. Balance everything usually remains the same.
If you have started the consultancy in New delhi then you can get clients although you have to really pitch for the clients with efforts.