TeamLease Services

Putting India To Work

Targeted
Customer
Base
 How does TeamLease
generate revenue?
● Business strategy currently divided into 4
major areas
○ Match: Staffing and Recruitment
○ Repair: Learning Solutions
○ Prepare: TeamLease Skills University
○ HR Services: Payroll Outsourcing, Regulatory
TeamLease earns ~ Rs. 2,00,000/- per associate &
Consulting
Profits Rs. 4500/- per associate.
TeamLease Services Group Structure
Competitors

Low barriers to entry and high

.
fragmentation results in intense
competition
 Future Focus and Raw Statistics
Indian Employment Scenario

● India’s workforce: estimated 550 million by 2022; Present: 473 million

● Bottom 10% engineers - less starting salaries - top 10% ITI graduates
● >60% of 8 lakh engineers graduates every year remain unemployed
● 90% jobs are skill-based; only 2% of population enrolled in vocational training; 60-80% worldwide in age group

TeamLease Services Statistics

● 98% Revenue of TeamLease Services - Flexi Staff Business

● Associate Employee/Trainee base grown at CAGR of 24.80% in three years leading to 2016-17.
● 17 lakh people over the last 17 years and has 2 lakh+ open jobs every day; 150,000 associates in Employment
cluster
● Total Income: Rs. 4,46,566.15 Lakhs; Net Profit: Rs. 9,802.99 Lakhs; Expected YoY Revenue Growth ~ 20%
● Profit Margin: ~ 2.5% per associate
 SWOT Analysis
Strengths
● Dominant position in organized staffing market a
largely unexplored sector.
● Strong Financial Profile - zero long term debt, ~11
crore rupees against assets worth 133 crore.
● Majority of revenue coming from repeated client
base
Opportunities
● The flexible-staffing industry is expected to grow
at a CAGR of 20-25% over the next few years.
● Shift from unorganized to organized players.
● Diversified functions, providing skill development
programs and compliance consulting
Weaknesses
● Significantly affected by fluctuations in general
economic activity with pricing pressure/margin
compression
● Loss of major clients or the deterioration of their
financial condition, direct effect on TeamLease
● Client contracts are generally of a short duration
and contain termination provisions
Threats
● Uncertain /unfavorable labor laws in the sector
may affect the increase in market penetration of
flexi-staffing industry.
● Intense competition in general staffing industry
with talent shortage
● Staffing related employment claims could be
raised against TeamLease
Porter’s Five Forces Model

1) Competition: TeamLease faces competition from several companies providing similar services like
Randstad, Quesscorp etc.
2) Threat from new entrants: Being a developing sector and absence of a major player, there are low
entry barriers and there are constantly new players entering the market which pose a threat to
TeamLease.
3) Power of suppliers: Current quotations from suppliers are for small term period, hence there is
always the uncertainty of terms and hence an anchor for suppliers.
4) Power of consumers: About 95.81% and 93.21% of Teamlease total revenues in the years ended
March 31, 2014 and March 31, 2015, respectively come from repeat customers. Hence the
customers either have tremendous bargaining power or enjoying great redressal mechanism for
maintaining long commitments.
5) Threat from substitute products: There is a lack of effective substitutes when it comes to flexible
staffing. Regular job portals usually function independently and do not affect staffing companies
like TeamLease.
BCG Matrix

TeamLease Staffing & Recruitment -

13% growth rate and 6% market

share among 31% held by organized
industry

between a star and a cash cow

BCG Matrix
TeamLease Skills Training -

High potential growth rate, Low market share : Question Mark

TeamLease HR Services -

High growth rate (21%), Low market share : Question Mark (Potential Cash Cow)
Sources
● Crisil Research - TeamLease Services Pvt. Ltd., 2015
● ICRA - TeamLease Services Pvt. Ltd., 2019
● Annual Report - TeamLease Services Pvt. Ltd.(2018-19), 2019
● Motilal Oswal - TeamLease Services, 2019
● FirstCall - TeamLease Services, 2019
● IDFC - TeamLease Services, 2019
● DRAFT RED HERRING PROSPECTUS “TeamLease Services Pvt. Ltd. , 2015
● Here are the five distinctive trends that will impact staffing in India