News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

This article was first published 17 years ago
Rediff.com  » Business » ABC to float recruitment outsourcing arm

ABC to float recruitment outsourcing arm

By G Balachandar in Chennai
June 29, 2006 14:10 IST
Get Rediff News in your Inbox:
Middle and senior level recruitment firm, ABC Consultants, plans to float a business process outsourcing arm, which could be seen as a logical extension of its business.

The company is expected to make an announcement in this regard in August or September.

The subsidiary would focus on clients in markets such as the US and UK and would offer services around recruitments to both low level and higher level recruitment categories.

Shiv Agarwal, chief executive officer, ABC Consultants, told Business Standard the company was actively working on the services to be offered by the BPO arm in recruitment processes.

"We have been in this business for over three decades and have built domain capabilities in recruitments. Though recruitment process outsourcing is still in early stages, it offers huge potential as about 70-80 per cent of recruitment by companies could be outsourced," he said.

Agarwal said that ABC Consultants was turning into a "multi-product and multi-country firm" from single product and single country firm.

"We are going overseas in a big way and we want to be in places where there are more number of Indians," he said.

New Delhi-based ABC is setting up its offices in the US, UK, West Asia and China. "Initially our focus will be on recruitments that are India-centric
and later we would become a local player," he said, adding the overseas offices would be in operation before floating its BPO venture.

As part of its new strategy to become a multi-product company, ABC is exploring the potential for introducing a number of services such as compensation study, career counselling and employee verification, among others.

ABC had handled 6,000-7,000 recruitments last year in the middle and senior level categories. It clocked a revenue of over Rs 35 crore (Rs 350 million) in 2004-05 and is targeting Rs 50 crore (Rs 500 million) this fiscal.

Though the company witnesses growth in recruitments across all verticals, manufacturing vertical, which includes engineering, process and infrastructure, contributed close to 30 per cent of its revenue.

Recruitments in manufacturing vertical grew by 80-90 per cent last year and expected to witness similar growth during this fiscal driven by boom in automotive, auto components, electronic manufacturing services and infrastructure sectors, he added.

Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group

Get Rediff News in your Inbox:
G Balachandar in Chennai
Source: source
 

Moneywiz Live!