The reason why many companies can operate across India is because their agreements (where the client company is also multi-located across India) are in two parts.
Part 1 of the contractual agreement consists of Service Levels, whilst Part 2 consists of Charge Rates per State.
Where the client company is located only in one State then the charge rates are in accordance with that particular State.
Therefore, for you to operate across India, you will need structures for all 28 States and 7 Union Territories (unless of course the numbers have changed!!)
I suggest you grow your business generically, in other words State by State, this way you will learn as you go along. Unless, you have the financial resources to go national from the outset.
I hope the above helps.
Thanks for your inputs on this,However,I was wondering that min wages notifications in all or many states does not include security services category in the list.Secondly,Security being the crucial issue, it has been covered under private security agencies act 2005, which is central act, but i have not found any special structure on commercial front for the same across various sstates.On the contrary, states like maharashtra has another legislation namely- Maharashtra private security guards (reg&employment) act 1981,
Does it not mean that crucial aspect like private security services in industry has been looked down upon?.Where in operating on PAN india level by private security agencies has ever been challenging due to statewise statutory issues which has direct impact on the welfare of security guards as it not only asks for not only the suitable manpower, but the training and awareness being delivered from time to time to thses people with the promise of growth in their field.Idea of this concept of operatiing on PAN INDIA LEVEL for security seems to be some how not matching with industry requirements because each state has its own statutory norms and issues influencing the security senario, where security agencies are likely to loose grounds on very purpose of the business.
We look forward for the growth of quality in the status of people involved in the security guarding services and hence the performance delivery of these people.
I totally agree with you.
Private security guards are looked down upon precisely because they are not given proper ongoing training and awareness.
Therefore, they are unlikely to deliver a service that can actually bring benefits to the commercial concern.
In the UK, for example, there is a Security Industry Authority which regulates the industry. Security guards are required by law to be licensed according to their role. For example, security guards at the doors of a night club are trained in how to handle those who have consumed too much alcohol in such a way that the experience is one which encourages the customer to come back. This approach gains the respect of other party goers.
Too many businesses see security guards as an investment that gives no or little return, and think that a man in a uniform is enough.
The industry needs to be properly regulated and policed if the status and welfare of the security personnel is to be improved.
There are both advantages and disadvantages having Pan India security contract. No agency is strong in all the states. Short listing of such agency itself is a difficult task. If you have your units in cities/capitals you may expect at least good services as the branded agencies are available in such places. If the units are in remote locations the service levels will not be up to the mark whatever may be the agency you hire. Basically it is because of the people they hire are locals, no proper training etc. In this scenario pan India contracts will be advantageous as you can get branded service providers even at remote places because of the obligation to serve at Pan India level.
Commercially you can negotiate with the agency only in service charges component, most of the remaining components are statutory. Savings will be there, but not much.
Administration will become easy, need not manage multiple agencies. Single point of contact from the agency for all the locations makes your job easy to get the things done. Operational problems will be there whether you hire single agency or multiple agencies. As the volume of the business will be more in pan India contracts agency response will be good because they clearly understands that the problem at one place can impact their total business. Moreover if we decentralize the security contracts with multiple agencies, The burden of evaluating each agency, internal approvals for different contracts for putting agreements in place and their renewals, multiple invoices processing and payment reconciliation, dealing with multiple people for operational problems will increase. Pan India contracts are good for the companies for administrative and operational reasons.
Thanks for your valuable inputs.
However the security agencies do business but as indicated by Mr,Harsh,the training and awareness is a bigger challenge, while principal employers of these agencies spend a lot in the name of brand and bulk business,but somewhere down the line,the very welfare and training aspect is missed out.
I feel that security must be treated as equally important as other functions of core business and principal employers.must leverage the security services and monitor agencies through strict audits.This will be only possible when agencies are scrutinised not by the brand but by the operational strength and training Facilities in the area where they operate and in such cases the various BUs can control and monitor through strict audits on training and other statutes.
This opinion of mine may seem to increase the work burden as against the easiness to work on Pan india but looking at the purpose and requirment I Feel Hiring different agencies at different locations and having local control may work better than Pan India.
I even know of an incident of labour unrest in security services where due to problem at one location, the other units too went on strike and thus security was at stake.And For all the security reasons, no business can afford to have such problems.After all security is the prime concern of every one.
Training is something that has to go on and on as far as security functions are concerned ... however today's corporate India considers security operations as lowest graded function and hence looks at it as a just another cost centre, rather than a department, in whose absence crores and crores would have gone in thin air !!!
By the way as seniors of this forum ... I needed a small help from you guys, to know a single point of reference from where I can keep getting regularly copies of MW wages notifications (Soft copy) in my email inbox for central as well as state governments pertaining to security industry.
An early help will be appreciated ....
Moreover, auditors do not accept references of any such websites. They always want to see the actual government notification issued by respective labor departments of states or centre all the time. Also always running behind every labor department guys continuously for knowing the status of revisions (if at all there are any), is a really cumbersome stuff. That is the reason why I was asking for a one point of source from where I can keep on getting instantly informed about any changes in MW of any state or centre as per respective labor department notifications.
Can anyone help me in this regards??
Note: I also tried tracking "Gazette of India" for few weeks in past. But I was totally lost in that big "Jungle" every time I tried to venture in it.
Hi,As regards to Maharahstra, I generally find the notifications from my consulting agency.I really appreciate If any solution is there for getting notifications from all over the country.I would also require such source details for myself as well.Trying to find out from my end as well.and will be sharing if i get some source.