Recruitment Company Focus: Should We Specialize in One Industry or Be Open to All?

Respected Seniors,

This question may seem common, but it is very important to me. Kindly reply to it.

For a successful recruitment company, what should be important to follow? Should the recruitment company stick to a particular industry (expertise in that industry), or should it stick to the requirements (open to work for all industries)?

Regards,
VKE

Hi,

I'm a complete novice, but in my opinion, it's better to start off in a specific area and then later on grow your expertise to other areas as well.

Regards,
Dheeraj 🌀

Hi,

As per my knowledge, a recruiting company does not need to stick to a particular industry. It is similar to the demand and supply policy. With IT/ITES booming, most firms tend to focus on recruiting in these industries. However, there are companies that recruit for other types of industries and still profit. It all depends on the company's strengths, reputation, etc., to choose to work across all industry types.

Valuable suggestions are most welcome.

Regards,
Swapna

Hi Shehwar,

I agree with Swapna that you should work on the demand-supply concept. However, you can also build a reputation for a particular sector or industry.

Best regards

Hi,

Swapna has expressed it clearly. In consultancy, you cannot focus on a particular industry, but you can hire a consultant to handle a specific industry. This way, you will be able to generate business from all industries.

Regards,
Sujata

Respected Seniors,

Thank you for sharing your views. There was a recent incident where two big multinational companies contacted us for recruitment work. However, upon discovering that we do not specialize in their industry, despite having a capable staff for various industries, we missed out on securing that contract. With this in mind, we aim to steer ourselves in the right direction.

We are still open to more suggestions.

Regards,
VKE

Hi,

I think it's important to understand your core competency and act accordingly. If you believe you have the resources to cater to the IT industry, then you should concentrate on that. Otherwise, it would be better to focus on what you already have.

On the other hand, trying to capitalize on the opportunities available in the IT sector is advisable.

Thanks and Regards,
Shiju Mathai

Now let's look at this issue from a different point of view. It's a kind of marketing strategy that needs to be decided.

The theory that addresses the strategic question is the "Theory of Product Life Cycle."

The product life cycle has 4 phases:

1) Introduction

2) Growth

3) Maturity

4) Decline

Introduction

When you are a start-up company, try to have an objective, aim to be specific, and concentrate on a specific sector. Concentrating on a specific sector means finding the need in the market.

I specifically mentioned the need in the market because if there is a demand in the market, then you need not push the product; the product sells itself. Note: Product here refers to the services you provide that fulfill requirements. Product and service are used interchangeably.

Growth

This is the phase where you can focus on growing the existing business and maximizing profits. In the introduction phase, to gain market share, you might have compromised on costs.

Maturity

This phase involves diversifying yourself by moving into other sectors and having multiple product lines or service lineups.

Decline

Every product or service has its peak, and once the product line or service lineup is no longer competitive, consider moving on to a different sector.

Note: Please refer to the attachment for the Product Life Cycle.

Vinod Vijapur

Hi,

For any company or organization, it is necessary to identify a set of core competencies. A staffing company should thus have one of its core competencies: "sourcing suitable profiles." In my humble opinion, it should not impose an artificial self-restriction by limiting itself to a particular industry.

Au revoir,
Sushant