Monday, October 20, 2008

Recession -The place for third party recruiters?

This post is dedicated to over a dozen wellwishers who have been reaching out to me -in the past fortnight. There has been a lot of horror stories in the media -some about the the shrinking job market , some about employers calling all the shots , and so, the question was " if this is the scenario with the companies, then how will agencies survive?"

Well, while I have blogged about it earlier, in the last few weeks, here , and here, this is what I say:
1.Hiring large numbers of people (lateral positions) is out of question for some time now.
2.However-there is a limit to the cost cutting measures they can do. So companies are hiring business development and sales persons.There wd also be need for analysts who can integrate -companies after a merger!
3.As far as recruitment consultancies..that purely depend on jobsites..are concerned, they will go out of business.Since the recruiters from the corporate side..will now have a lot of time-and have to keep costs low, they can do all the recruitment they want..inhouse.

Infact, in our case, where we have been essentially a niche player-handling 'returning Indians' -and that too, across sectors, the risks are adequately hedged!!

On the contrary, there are have quite a few 'first time' clients-who have reached out to us-exploring if we can assist them for tapping some of the top notch Indian professionals in the US/UK -who may be open to relocation -not just within the US -but also to other Asia Pac regions- apart from ofcourse, returning to India. ( Some of the 'not so confidential' openings that we are presently working on -are posted here, apart from some non IT -and even IT jobs!)

And yes, there is an increasing action in the collaboration space- with both recruiters abroad, and within India, reaching out to explore if we can synergise and flank one another-to provide better services to clients and candidates!
One can see- there is enough space for those who can add value-anytime!!
I recall reading an article a few years ago by Paul Hawkinson -on why Recruiters are Worth what they charge . I guess the first sentence sums it up all...“When I need a heart by-pass, rest assured that I won’t select my surgeon on the basis of what he charges.”
Are corporate executives tightfisted when dealing with what is so commonly thought of as the “heartbeat” of their companies . . . top-talent? "
Point to mull over??

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