Navigating Pan-India Private Security: Is It Worth the Operational Challenges?

Hi, most reputed companies hire private security services at the Pan-India level. I am, in fact, confused about how this is worked out on a commercial front as the service rates vary in different states. Some states even have their own guard boards. Operationally, it is also found to be difficult except for some branded agencies. I need opinions and suggestions from members: is it advisable to hire at the Pan-India level?

Thank you.

The reason why many companies can operate across India is that 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, while Part 2 consists of Charge Rates per State. Where the client company is located only in one State, 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 gradually, 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.

Regards,
Harsh

Thank you for your insights on this. However, I was wondering why minimum wage notifications in many states do not include the security services category in the list. Secondly, security being a crucial issue, it has been covered under the Private Security Agencies Act 2005, which is a central act. But I have not found any special structure on the commercial front for the same across various states. On the contrary, states like Maharashtra have another legislation, namely the Maharashtra Private Security Guards (Regulation and Employment) Act 1981.

Does this not mean that a crucial aspect like private security services in the industry has been overlooked? Operating on a PAN India level by private security agencies has always been challenging due to state-wise statutory issues, which have a direct impact on the welfare of security guards. It not only requires suitable manpower but also training and awareness to be delivered from time to time to these individuals with the promise of growth in their field. The idea of operating on a PAN India level for security seems to somehow not align with industry requirements because each state has its own statutory norms and issues influencing the security scenario, where security agencies are likely to lose ground on the very purpose of the business.

We look forward to the growth of quality in the status of people involved in security guarding services and hence the performance delivery of these individuals.

Thank you,

Bijay

Hi Bijay, 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 that 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 nightclub 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 are to be improved.

Regards, Harsh

There are both advantages and disadvantages to having a Pan India security contract. No agency is strong in all states. Shortlisting such an agency itself is a difficult task. If your units are located in cities/capitals, you may expect at least good services as branded agencies are available in such places. However, if the units are in remote locations, the service levels may not meet expectations regardless of the agency hired. This is primarily due to the fact that the people they hire are locals without proper training, etc. In this scenario, Pan India contracts can be advantageous as you can access branded service providers even in remote areas due to the obligation to serve at the Pan India level.

Commercially, you can negotiate with the agency only on the service charges component, as most of the remaining components are statutory. While there may be some savings, they might not be substantial.

From an administrative perspective, managing multiple agencies can be avoided, making administration easier. Having a single point of contact from the agency for all locations simplifies the process of getting things done. Operational challenges may persist whether you hire a single agency or multiple agencies. However, with the increased business volume in Pan India contracts, agency responsiveness tends to be better as they understand that a problem in one place can impact their entire business. Furthermore, if security contracts are decentralized across multiple agencies, the burden of evaluating each agency, obtaining internal approvals for different contracts, arranging agreements and renewals, processing multiple invoices, reconciling payments, and dealing with various personnel for operational issues will increase. Thus, Pan India contracts are beneficial for companies for administrative and operational reasons.

Regards,
Anjan

Thanks for your valuable inputs. However, the security agencies do business, but as indicated by Mr. Harsh, the training and awareness are bigger challenges. While principal employers of these agencies spend a lot in the name of brand and bulk business, somewhere down the line, the welfare and training aspects are missed out.

Importance of Security in Business Functions

I feel that security must be treated as equally important as other core business functions, and principal employers must leverage the security services and monitor agencies through strict audits. This will only be possible when agencies are scrutinized not by the brand but by the operational strength and training facilities in the area where they operate. In such cases, the various business units can control and monitor through strict audits on training and other statutes.

Local Control vs. Pan-India Approach

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 requirement, 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 labor unrest in security services where due to a problem at one location, the other units too went on strike, and thus security was at stake. For all security reasons, no business can afford to have such problems. After all, security is the prime concern of everyone.

Thanks,

Bijay

That is the real concern over here as stated by Bijoy.

The Importance of Continuous Training in Security Functions

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 the lowest graded function and hence looks at it as just another cost center, rather than a department, in whose absence crores and crores would have gone in thin air!

Request for MW Wages Notifications

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 regular copies of MW wages notifications (soft copy) in my email inbox for central as well as state governments pertaining to the security industry. An early help will be appreciated.