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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.
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.
Business Upturn
4 days ago
- Business
- Business Upturn
Quess Corp launches Origint to support growth of Global Capability Centers
By Aman Shukla Published on June 3, 2025, 13:51 IST Quess Corp, a major player in India's staffing and workforce solutions industry, has introduced a new business line called Origint – Powered by Quess. This service is designed to support global enterprises in establishing, expanding, and managing capability centers in India and other key international locations. India currently hosts over 1,700 Global Capability Centers (GCCs), with 120 new centers launched in 2024 alone. These GCCs have driven a 17% year-on-year increase in the tech workforce, adding approximately 180,000 jobs in 2024. The GCC market in India is expected to grow significantly, with projections reaching $105 billion by 2030 and an employment base of 2.4 million professionals. The role of GCCs is shifting from purely cost-efficient operations to becoming strategic hubs focused on innovation. Origint aims to address this evolution by offering a comprehensive, end-to-end solution. This includes services such as strategic planning, regulatory compliance, real estate and infrastructure management, digital onboarding, AI-powered recruitment, and operational management tailored to the needs of global companies. The solution supports various types of capability centers, including shared service hubs, technology delivery centers, research and development units, and customer experience operations. Quess Corp operates in 28 cities across India and seven international markets, providing strong regional expertise that benefits enterprises looking to expand their presence in India and abroad. The company has experience supporting multiple industries such as IT, banking and financial services, engineering, telecommunications, manufacturing, and retail through its capability center offerings. With the launch of Origint, Quess Corp aims to become a reliable partner for companies seeking scalable, future-ready infrastructure to support their global capability center strategies. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Economic Times
20-05-2025
- Business
- Economic Times
Staffing firm Quess Corp posts 54% jump in Q4 profit after demerger, approves dividend of Rs 6 per share
Quess Corp, the staffing management company on Monday reported strong quarterly results after completing the demerger of its business segments in March. ADVERTISEMENT The firm reported a 54% year-on-year jump in profit for the fourth quarter of FY25, while posting an adjusted profit after tax of ₹210 crore. The revenue for Quess rose 9% year-on-year to ₹14,967 crore. EBITDA for the quarter stood at ₹262 crore, registering a 13% growth. To reward its shareholders, the company's board approved a final dividend of ₹6 per share. It also introduced a new dividend policy under which up to 75% of the free cash flow will be distributed to shareholders, the company said in a release. Quess Corp's Executive Director, Guruprasad Srinivasan, said the company is entering a new phase of focused growth following the demerger. 'We are excited to share our first results as a focused workforce management company. The sharper focus is already translating into better market penetration and improved cost control." He added that the firm is also positioned to deliver a return on equity of 20% to its shareholders. Breaking down its financial performance, Srinivasan highlighted the contribution of the Professional Staffing segment, which saw EBITDA grow 42% year-on-year, driven by demand for niche tech talent. ADVERTISEMENT "Professional Staffing had an outstanding year with EBITDA growth of 42% YoY driven by niche tech roles and will shortly be launching our GCC-as-a-service to augment our capabilities," he said. Global Capability Centres (GCCs), which now contribute 70% of the segment's revenue, remain a key growth driver for Quess. The company onboarded 45 new GCC clients during the quarter. ADVERTISEMENT The General Staffing business, while facing some pressure due to macroeconomic headwinds and a ramp-down in the NBFC segment, closed the quarter with revenue of ₹3,149 crore and EBITDA of ₹43 crore. Quess added 80 new contracts during the quarter and 323 through FY 2025. It now has 48,000 job openings to fill in the first quarter of FY26 and is seeing strong demand for its value-added services, Quess said in a statement. ADVERTISEMENT The company's overseas staffing business delivered mixed results. The business posted revenue of ₹287 crore and EBITDA of ₹17 crore. "Middle East recorded the highest ever revenue and EBIDTA growth, while Singapore continues to face headwinds," the executive director said. The firm noted that in Singapore, focused general staffing interest is offsetting some impact. They added that the IT staffing turnaround in Malaysia and the diversified portfolio in the Philippines are also picking up. (You can now subscribe to our ETMarkets WhatsApp channel)
