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Mint
3 days ago
- Business
- Mint
Staffing firms find it more profitable putting employees in GCCs than IT firms
Bengaluru: Staffing firms and job search platforms such as Quess Corp Ltd, TeamLease Services Ltd and Info Edge (India) Ltd are finding it more profitable to help place experienced professionals at tech centres of the world's biggest companies than pure-play information technology (IT) outsourcers that typically hire freshers in bulk. Better profitability and revenue from global capability centres (GCCs) have helped the staffing firms offset slowdown in their income from the country's $283 billion IT sector, which has gone slow on hiring engineers in the past couple of years. GCCs contributed about 4.2%, or ₹153 crore, of Quess's January-March revenue. TeamLease, on the other hand, got ₹95 crore, or about 3% of its revenue from GCCs, according to its press release. For job platform Naukri's parent company Info Edge, most of the growth of its job-hunting platforms came from GCCs. This business, known as 'Recruitment Solutions,' makes up almost three-fourths, or ₹542 crore, of its overall quarterly revenue. Also read | GCCs prefer hiring leaders from peers than IT services companies Staffing firms recruit employees for GCCs and get a commission for each person onboarded in the captive centre. Quess and TeamLease mentioned that they get more money from placing candidates in GCCs. 'GCC is a high-margin business," Guruprasad Srinivasan, chief executive of Quess, told Mint on Tuesday. 'The space that we operate for GCCs is in 5-8 years of experience, whereas in IT services, it is freshers," added Srinivasan. He added that employing people in GCCs increases profitability because Quess can get more commission for deploying an experienced person in a GCC as opposed to employing a fresher in an IT services company. 'It's 3-4 times higher than what I could do at IT services," said Srinivasan. TeamLease voiced a similar opinion. 'The salaries and margins (for placing candidates in a GCC) are better than the IT services companies. This is largely due to the hiring demand being in high value roles with niche skills," TeamLease said in response to Mint's queries on Tuesday. GCCs also fetched these firms more revenue per employee. 'With GCCs contributing over 60% of our net revenue, they generate higher revenue per associate and contribute meaningfully to margin enhancement," said TeamLease. Even the operating margins of the staffing firms jumped due to GCCs. For Bengaluru-based Quess, India's largest staffing firm, GCCs made up 66% of its ₹77 crore operating profit. This is higher than two years ago when this contribution totalled 45% at the end of the three months through March 2023. 'In specialized staffing, improved GCC mix and operational efficiency have contributed to margin expansion on a year-on-year basis," said Ramani Dathi, chief financial officer of TeamLease, as part of the company's post-earnings interaction with analysts on 21 May. Also read | The boutique consulting firms powering India's next GCC boom Quess and TeamLease ended the three months through March with revenue of ₹3,656 crore and ₹2,868 crore, respectively. Info Edge ended the quarter with ₹750 crore in revenue. Quess, TeamLease and Info Edge ended FY25 with ₹14,967 crore, ₹11,201 crore and ₹2,849.6 crore in revenue, respectively. This growth from captives comes on the back of a decline in revenue from IT service providers. For Quess, recruitment for IT services companies has been low, and GCCs have offset much of the decline. 'As we've called out, I think IT services is still not in the market with open positions and growth. There is still an element of absorption or a decrease in headcount that's happening from the IT services side. I think what we had called out was GCC substituting for that to some extent," said Ashok Reddy, chief executive of TeamLease, as part of the company's post-earnings call with analysts. Quess's Srinivasan voiced a similar opinion, saying 'it's a known fact now there is not much hiring happening in that space." Most of the new onboards at Quess and TeamLease are from GCCs, reflecting the growing importance of the sector. Also read | Captive concerns: Why Cognizant has called out the risk from GCCs For InfoEdge, new recruits are trickling in from GCCs. 'To diversify and expand its client base, the company is strengthening its go to market offerings and acquiring new clients and focusing on the GCC segment," said Kotak Institutional Equities analysts Kawaljeet Saluja, Sathishkumar S. and Vamshi Krishna in a note dated 27 May. According to IT industry lobby National Association of Software and Services Companies (Nasscom), there are 1,760 GCCs in India. More than 875, or half of the country's GCCs, are based in Bengaluru, while Hyderabad has about 355. The rest are located in cities such as Delhi-National Capital Region, Pune and Chennai. Nasscom estimates the number of Indian GCCs will hit 2,200 by March 2030, with a market size of $105 billion.
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Business Standard
3 days ago
- Business
- Business Standard
Quess Corp throws its hat in GCC business to tap $105 bn market by 2030
The new business line, named Origint, will provide end-to-end services to help GCCs set up, scale, and operate high-performance centres across India and key international markets Avik Das Bengaluru Listen to This Article Quess Corp, a staffing and workforce solutions company, is setting up a dedicated business line for global capability centres (GCCs) as it aims to expand its presence in high-margin businesses and capture a share of a market expected to be worth $105 billion by 2030. The new business line, named Origint, will provide end-to-end services to help GCCs set up, scale, and operate high-performance centres across India and key international markets. 'Global enterprises are increasingly seeking more than mere cost savings – they want speed, innovation, and efficiency at scale,' said Guruprasad Srinivasan, chief executive officer and executive director of
Economic Times
3 days ago
- Business
- Economic Times
Staffing firm Quess Corp announces 'Origint' business line for GCCs, offering end-to-end services
Staffing and workforce solutions provider Quess Corp on Tuesday announced a new business line, focusing on the growing demand for Global Capability Centres (GCCs). The Fairfax Group-controlled firm said it aims to address inefficiencies and reduce intermediaries in setting up operations in India by offering a single-window solution to global clients under umbrella service will offer a comprehensive solution that includes blueprinting for a GCC, which is identifying what specific tasks or outcomes the client wants from its office in India. Other services such as real estate, infrastructure management, digital on-baording, AI powered hiring and managing operations for these firms will all be facilitated by firm said it has already onboarded an US-based healthtech company and helped in setting up end-to-end operations in Hyderabad. A few other clients are in the pipeline with a target of four to five GCCs for 2025, said CEO Guruprasad Srinivasan of Quess. The firm said it is in talks with enterprises from the Middle East, Japan and Singapore for setting up GCC using Origint."Global enterprises are increasingly seeking more than mere cost savings - they want speed, innovation, and efficiency at scale," Srinivasan added. The company said the next wave of enterprise growth in India will be driven by firms from the US, Southeast Asia, the Middle East, and Europe. The focus being on healthcare, banking and telecom country currently hosts over 1,700 GCCs with 120 new centres launched in 2024. The GCC market is projected to reach $105 billion by 2030, employing over 24 lakh individuals. Srinivasan said Quess expects the new vertical 'GCC as a service' to significantly boost its earnings and anticipate a headcount growth of around 500-750 in the subsequent quarters. The firm said 70% of its revenue is generated from servicing GCCs. "With Origint and in partnership with our demerged entities - Digitide for Al-first digital solutions and Bluspring for infrastructure management, and other key external global partners, we are making a bold bet on the future of GCCs,' said Lohit Bhatia, President- Workforce Management at Quess. He added that the single window service will help fill the execution gap and over dependence on tier two and three suppliers, extensively reducing markup costs.
Time of India
3 days ago
- Business
- Time of India
Staffing firm Quess Corp announces 'Origint' business line for GCCs, offering end-to-end services
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Staffing and workforce solutions provider Quess Corp on Tuesday announced a new business line, focusing on the growing demand for Global Capability Centres (GCCs).The Fairfax Group-controlled firm said it aims to address inefficiencies and reduce intermediaries in setting up operations in India by offering a single-window solution to global clients under umbrella service will offer a comprehensive solution that includes blueprinting for a GCC, which is identifying what specific tasks or outcomes the client wants from its office in India. Other services such as real estate, infrastructure management, digital on-baording, AI powered hiring and managing operations for these firms will all be facilitated by firm said it has already onboarded an US-based healthtech company and helped in setting up end-to-end operations in Hyderabad. A few other clients are in the pipeline with a target of four to five GCCs for 2025, said CEO Guruprasad Srinivasan of Quess. The firm said it is in talks with enterprises from the Middle East, Japan and Singapore for setting up GCC using Origint."Global enterprises are increasingly seeking more than mere cost savings - they want speed, innovation, and efficiency at scale," Srinivasan company said the next wave of enterprise growth in India will be driven by firms from the US, Southeast Asia, the Middle East, and Europe. The focus being on healthcare, banking and telecom country currently hosts over 1,700 GCCs with 120 new centres launched in 2024. The GCC market is projected to reach $105 billion by 2030, employing over 24 lakh individuals. Srinivasan said Quess expects the new vertical ' GCC as a service ' to significantly boost its earnings and anticipate a headcount growth of around 500-750 in the subsequent quarters. The firm said 70% of its revenue is generated from servicing GCCs."With Origint and in partnership with our demerged entities - Digitide for Al-first digital solutions and Bluspring for infrastructure management, and other key external global partners, we are making a bold bet on the future of GCCs,' said Lohit Bhatia, President- Workforce Management at Quess. He added that the single window service will help fill the execution gap and over dependence on tier two and three suppliers, extensively reducing markup costs.
Economic Times
20-05-2025
- Business
- Economic Times
Quess Corp Q4 adjusted PAT post demerger grows to Rs 63 crore
Staffing and workforce solutions provider Quess Corp has reported growth in adjusted PAT post demerger to Rs 63 crore in the January-March quarter. The Bengaluru-headquartered firm in March this year received NCLT approval for the demerger of its diversified businesses into three different entities. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Staffing and workforce solutions provider Quess Corp has reported growth in adjusted PAT post demerger to Rs 63 crore in the January-March quarter. The Bengaluru-headquartered firm in March this year received NCLT approval for the demerger of its diversified businesses into three different a result, Quess Corp spun off Digitide Solutions and Bluspring Enterprises as separate company posted an adjusted PAT of Rs 42 crore in Q4 of FY24. Revenue from operations in Q4 FY25 increased 3.7 per cent to Rs 3,656.4 crore, from Rs 3,536.9 crore in Q4 the full fiscal year 2024-25, adjusted PAT (profit after tax) in FY25 grew 54.4 per cent year-on-year to Rs 210 revenue from operations saw a 9.2 per cent increase to Rs 14,967 crore."Professional Staffing had an outstanding year with EBITDA growth of 42 per cent Y-o-Y driven by niche tech roles, and (we) will shortly be launching our GCC-as-a-service to augment our capabilities."General Staffing experienced a drop in revenue due to macro headwinds and ramp-down in the NBFC segment, the base is now reset to grow at market-leading growth rates for FY26. In the Overseas Staffing business, the Middle East recorded the highest ever revenue and EBIDTA growth, while Singapore continues to face headwinds," ED and Group CEO Guruprasad Srinivasan demerger, he added, has enabled sharper focus, which should result in greater market penetration and cost optimisation for the company, making it "ready to deliver an ROE (Return on Equity)of 20 per cent to shareholders".Quess Corp's employee count at the end of FY25 stood at 4,59, company's board has recommended a final dividend of Rs 6/share and a new dividend policy of distributing up to 75 per cent of the free cash flow . Shares of Quess Corp settled 9.38 per cent lower at Rs 338.55 apiece on the BSE on Tuesday.
