Problem statement Competing against internal recruitment team by creating a service differentiator for Antal International Purpose Merits

Introduction About the project: In last two decades India has emerged as a global IT outsourcing hub, most of this growth can be attributed to the reason of labor cost arbitrage which eventually led them to a linear growth model. In the recent past, most of the leading IT companies have recognized this fact as an impediment to their long term success. As most of the companies are moving towards the trend of setting a non-linear growth path it equally matters for them to have effective people at mid and senior level to execute it. A mid and senior level recruitment service is a very niche market where most of the recruitment agencies function as Multiple vertical- single discipline or Single vertical- Multiple discipline model or Multiple verticals-Multiple discipline model. Antal international-Chennai works on Single vertical-single discipline model. Antal-Chennai provides services for business function of the Information technology industry. As a recruitment solutions company operating in a niche space it is imperative to overcome competition. In this business competitors are other recruitments solutions company and internal recruitment team. Over years Antal has remarkably leveraged itself against many of the external recruitment solutions companies, while competing and overcoming internal recruitment agencies has always been a challenge. I recently had an interaction with a CEO- IT Business of famous N-BFC, and won a business with him, but it was stopped by Head HR owing to the reasons given by internal recruitment team. As HR function plays vital role in recruitment decisions, it is always challenging for an external recruitment solutions company to provide a service differentiator About the company: Founded in the early 1990s to service a gap in the market and the trend of globalization Antals International Network has assisted numerous clients in over 75 countries. The new millennium has seen Antals services become the solution in demand by clients from SME level to Fortune 500 corporations who seek a knowledgeable and professional business partner with scale and global reach. Antal expanded its global footprint by operating in a franchisee model. Thereby, Antal UK licenses its franchisee

Industry: A snap shot of Indian IT industry

The Indian information technology (IT) industry has played a key role in putting India on the global map and is now envisioned to become a US$ 225 billion industry by 2020. Over the past decade, the Indian IT-BPO sector has become the countrys premier growth engine, crossing significant milestones in terms of revenue growth, employment generation and value creation, in addition to becoming the global brand ambassador for India. According to a research report published by National Association of Software and Service Companies ITBPO Sector in India the sector is estimated to aggregate revenues of US$ 88.1 billion in FY2011, with the IT software and services sector (excluding hardware) accounting for US$ 76.1 billion of revenues (Figure1.0). Figure 1.0: Revenue ($bn) in IT software and Hardware- FY 2011

12 Software Hardware 76.1

The report estimates export revenues to gross US$ 59 billion in FY2011 and contribute 26% as its share in total Indian exports (merchandise plus services), employing around 2 million employees. Within exports, IT Services segment was the fastest growing segment, growing by 22.7% over FY2010, and aggregating export revenues of US$ 33.5 billion, accounting for 57 per cent of total exports. NASSCOM said that the domestic IT-BPO revenues excluding hardware are expected to grow at almost 16% to reach US$ 17.35 billion in FY2011. Strong economic growth, rapid advancement in technology infrastructure, increasingly competitive Indian organizations, enhanced focus by the government and emergence of business models that help provide IT to new customer segments are the key drivers for increased technology adoption in India. A snap shot on domestic IT market The data centre services market in the country is forecast to grow at a compound annual growth rate (CAGR) of 22.7 per cent between 2009 and 2011, to touch close to US$ 2.2 billion by the end of 2011, according to research firm IDC India's report published in March 2010. The IDC India report stated that the overall India data centre services market in 2009 was estimated at US$ 1.39 billion. India will see its number of internet users triple to 237 million by 2015, from 81 million registered in September 2010, according to a report titled 'Internet's New bn', by the Boston Consulting Group (BCG). BCG said Internet penetration rate in India is expected to reach 19 per cent by 2015, up from the current 7%

Figure 1.3 IDC report inference- Increase in the data centre services market

2.5 2 1.5 1 0.5 0 Fy-2009 FY-2011 Series1

TRAI said on December 7, 2010 that it was targeting a 10-fold increase in broadband subscribers to 100 million by 2014. The country has 10.29 million subscribers now. "We will have 100 million broadband subscribers by 2014," J.S. Sarma, Chairman, and Telecom Regulatory Authority of India (TRAI) said at the fifth India Digital Summit 2010 organized by the Internet and Mobile Association of India. India's personal computer market grew 30 per cent in 2010 the highest since 2007, research firm IDC revealed. Hewlett Packard emerged the top company in India, leading in both notebook and desktop categories. HP regained market leadership after two quarters with a 17.3 per cent market share, taking the pole position from Dell Inc that got 14.2 per cent of the market. Nearly 25 lakh personal computers were shipped to Indian consumers, pushing up the overall sales by 26 per cent. Around 14.5 lakh desktop PC units were sold in the fourth quarter last calendar year, a 14 per cent increase over 2009. IT Enabled Services The Indian information technology (IT) - business process outsourcing (BPO) sector including the domestic and exports segments continue to gain strength, experiencing high levels of activity both onshore as well as offshore. The companies continue to move up the value-chain to offer higher end research and analytics services to their clients. Indias fundamental advantagesabundant talent and costare sustainable over the long term. With a young demographic profile and over 3.5 million graduates and postgraduates that are added annually to the talent base, no other country offers a similar mix and scale of human resources. In a recent Nasscom publication it is apparent that the IT-BPO sector's revenue as a proportion of the country's gross domestic product (GDP) has grown from 1.2 per cent in 1998-99 to an estimated 6.4 per cent in 2010-11. Further, NASSCOM predicts that the Indian IT-BPO revenues may touch US$ 225 billion by 2020. As per the Strategic Review 2011, the BPO sector continues to be the fastest growing segment of the industry and is expected to reach US$ 14.1 billion in 2010-11, growing at 14 per cent. The year also witnessed the next phase of BPO sector evolution - BPO 3.0 - characterised by greater breadth and depth of services, process re-engineering across the value chain, increased delivery of analytics and knowledge based services through platforms, strong domestic market focus and SMB centric delivery models. Further, as per NASSCOM, within exports, IT Services segment was the fastest growing segment,

growing by 22.7 per cent over FY2010, and aggregating export revenues of US$ 33.5 billion, accounting for 57 per cent of total exports. Domestic BPO segment is expected to grow by 16.9 per cent in 2010-11, to reach US$ 2.8 billion, driven by demand from voice based services, in addition to adoption from emerging verticals, new customer segments, and value based transformational outsourcing platforms. Moving up the value-chain ITeS, which started with basic data entry tasks over a decade ago, is witnessing an expansion in its scope of services. Now the service offerings have expanded to: Knowledge process outsourcing (KPO) Legal process outsourcing (LPO) Games process outsourcing (GPO) Design outsourcing The Indian BPO sector has not only added scale in the last nine years, but has also matured significantly in terms of scope of service offerings, buyer segments served and service delivery models. Apart from achieving maturity in the horizontal segment, providers are increasingly developing vertical/ domain specialisation to capture greater value. ITES industry- Market segmentation FY 2011
BFSI 14% 17% 20% 41% Retail 8% Manufacurin g Telecom

According to the DIT, among the verticals serviced by India's IT/ ITES-BPO industry those that account for the largest share of revenue are banking, financial services and insurance (BFSI) (41 per cent), HiTech/ Telecom (20 per cent), manufacturing (17 per cent), retail (8 per cent), with smaller contributions coming from media, publishing and entertainment, construction and utilities, healthcare and airlines and transportation. Important industry verticals being serviced by the BPO segment are insurance, retail banking, travel and hospitality, auto manufacturing, telecom and pharmaceuticals. Horizontals such as Customer Interaction and Support (CIS), Finance and Accounting (F&A) and Human Resource Management (HRM) are important areas in the BPO segment. The Indian animation industry is estimated to grow at a compounded annual growth rate of 22 per cent to reach US$ 1 billion by 2012, according to NASSCOM. It also estimates the gaming industry to grow 49 per cent, reaching US$ 830 million by 2012. According to a report 'Globalization of Engineering Services', published by NASSCOM and Booz Allen Hamilton, India may capture 25 to 30 per cent of the projected US$ 150 billion to US$ 225 billion market for off-shored engineering services, i.e. around US$ 50 billion, by 2020. According to a

report by consultancy firm ValueNote, the LPO revenues in India are estimated to reach US$ 1.1 billion in 2014 from US$ 146 million in 2006.

Data Matrix ( Hansoff,Pest) Data inference Conclusion Recommendation

Advantage India According to AT Kearney's 'Global Services Location Index 2011', a ranking of the top 50 most attractive offshoring destinations, India continues to be the most preferred destination for companies looking to offshore their IT and back-office functions. India has constantly held the number one position since 2004, when the rankings started. According to the report, India has the first-mover advantage in the back-office operations avenue, coupled with reasonably priced skilled workforce and sound knowledge base. According to NASSCOM, by 2014-15, the Indian IT-BPO industry is expected to contribute about 7 per cent to global annual GDP and create about 14.3 million employment opportunities (direct and indirect). By 2020, new segments (SMBs), new verticals (Public sector and Defence, Healthcare, Utilities, Printing and Publishing) and new geographies (BRIC) will account for 50-55 per cent growth in the addressable market. India supply base is well placed to tap this potential, with their two decade long experience, mature service capabilities, presence in almost all verticals, global footprint and an abundant talent pool. For Indias top technology firms focused on the markets of US and Europe, the countrys US$ 15-billionplus domestic market for IT services is the latest battleground. In a year when top markets for software exports are recovering and expected to grow at less than 5 per cent, Indias domestic market for IT is set to grow three times faster, mainly on the back of higher government spending on IT and new outsourcing projects from local banks.

The Internal Recruitment is the most favorite source of candidates in the stable and developed companies. The Internal Recruitment needs a strong support from other HR Processes, because the unmanaged internal recruitment process can lead to disappointed managers and employees in the organization. The Succession Planning and strong and consistent Performance Management are needed to ensure the success of the internal recruitment. The internal recruitment can offer the chance to change the job position to anyone in the organization, but the efficient internal recruitment process needs a strong help from other processes to provide managers with the additional information to work with. In case of the unknown additional information, the internal recruitment process cannot offer much of the value added. The internal job candidate should be known to the organization and the HRM Function should provide the hiring manager with the information about the background information. The internal recruitment process has to be driven by strict and agreed HR Rules and HR Policies as the unclear rules for the process can bring a lot of tension inside the organization as the best employees can be easily stolen among different units and different managers. This issue looks pretty simple to solve, but the reality can bring difficult issues and conflicts among the management team and can affect the performance of the organization hardly. Internal Recruitment Pros and Cons The Internal Recruitment can build a strong loyalty with the organization as the employees have a chance to change their position after a period of time. The employees are not pressed to look for opportunities on the external job market. The Internal Recruitment can be cheaper for the organization and can save the costs dedicated to the training and induction of new employees. Also, as the candidate knows the organization, the possibility of the failure is not a significant issue to the organization. The Internal Recruitment needs strong management from the HRM Function, which can lead to the conflicts and the HRM Function has to have a position to be able to act as a strong facilitator in the conflict resolution. The Internal Recruitment can lead to huge issues when the candidates come from one department. The managers have to have the right to protect their own interests in the organization as they are responsible for the smooth operation. The Internal Recruitment does not bring new skills and competencies to the organization and organization with an intensive usage of the internal recruitment can suffer from the fresh blood. External Recruitment Pros and Cons The External Recruitment brings new people to the organization, which can be a huge benefit for the organization. The External Recruitment allows the organization to define the right requirements and the organization can select the candidate, which suits the organization best. The external recruitment can

be in many situations quicker solutions, mainly in the situation, when the job market is full of potential job candidates. The external recruitment and proper campaign increase the popularity of the organization on the job market, which helps to improve the position for further expansion. On the other hand, the external recruitment is expensive and takes a lot of energy from the HRM Function to handle all the job candidates in the selection process.

When deciding whether to recruit staff to fill vacancies either from within an organization (internally) or from outside the organization (externally), the advantages and disadvantages of each will need to be taken into consideration: Internal recruitment Advantages * Lower cost, because not paying external agency to recruit for you * May improve morale of existing staff * Recognition and reward of the good performance of internal staff * Reinforces & supports the company's succession planning strategies * Internal staff are a 'known' quantity with existing information available about their skills Disadvantages * Can reinforce existing negative culture * Run the risk of 'in breeding' * Those that are not promoted can become discontent * A strong performance management system is required * Can encourage political 'in-fighting' for promotions among internal staff Typically, if internal strategies are widely used by an organization, then the majority of outside recruitment only takes place for lower level jobs, which then serve as an entry point into that organization. This strategy works particularly well in organizations that have an embedded and effective succession planning process in place. The disadvantage of these internal strategies is that vacancies often will attract applications from staff that are clearly not qualified or unsuitable for the position, even though they may be otherwise thought of as valued employees. How to manage potential 'fall out' and sustain staff morale in the face of unsuccessful job applications needs to be managed carefully by the organization. External recruitment Advantages * Avoids the risk of creating resentment by promoting 'favorites' from the inside

* Outsiders bring in fresh ideas, skills and knowledge * Forces internal staff to 'compete' & update their skills, education, etc * Helps to facilitate change in culture * New blood' & more dynamic workforce Disadvantages * New appointee may not fit the existing culture within the organization * May affect the morale of internal staff who have been over-looked * Require a longer period of induction and orientation * Helps to facilitate change in culture * May take longer to fill the vacancy * May create resentment from existing employees Many organizations may seek to fill a vacant position internally in the first instance, and then follow through with an external campaign if no suitable inside staff are identified. To avoid resentment among existing staff, the organization must be clear and consistent in communicating the corporate recruitment policy as it relates to sourcing suitable staff. The major disadvantage in an external job search campaign is that it can be time consuming and costly, particularly in a full employment economy. Organizations need to be wary of the state of the labor market as it relates to the particular vacancy at hand, so that an effective external recruitment strategy can be clearly thought through and put into place. For example, sales jobs are notoriously difficult to fill but are usually 'mission critical' to an organization, given that they are integral to securing a company's income. In such instances, and in order to fill the vacancy quickly, the nature and extent of advertising (e.g. local, national or overseas advertising) will need to be taken into consideration. On the other hand, when there is high unemployment, a smaller and less costly campaign may be sufficient.

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Reference http://www.ibef.org/industry/ITenabledservices.aspx About the company

Antal International believes in employing whichever solutions are the most appropriate to each assignment ensuring the most successful and expedient solution in any given industry sector / geography and assignment.

We will typically recommend the use of a mix of approaches as is appropriate. Our unique "Four-Way Methodology", encompassing search, selection, portfolio networking and the internet effectively scours the whole market for talent and forms our preferred method and thoroughly searches a market for active, semi-passive and passive talent ensuring you reach the best possible talent, not just the available talent. Executive Search A direct "headhunt" approach into a pre-selected and researched target market. Primarily useful where talent is likely to be working in direct competitors and be secure, well rewarded and performing - the ultimate passive candidate. It enables you to adopt "hire to hurt" strategies to gain competitive advantage and market insight. Targeted search is highly effective. We source candidates that match your skill set and your corporate culture. We use our database of information to help identify companies that might employ a suitable candidate. We then use our contacts to determine which candidates have established themselves as being "best in the field". We follow an advanced in-house interview process to ensure that you have the greatest chance to successfully hire the candidate that you want and finally we negotiate on your behalf with the candidate. Good management is essential to the health and welfare of all companies; excellent management is the key to success in today's highly competitive business environment. Employing this methodology is ultimately more expedient, efficient and effective. We provide strict confidentiality, an extensive network of contacts, objectivity in candidate evaluation, and negotiation experience and expertise. Selection Advertising This is often used in conjunction with a search campaign to reach a wide market of talent / diverse demographic and disparate geographic. Invaluable when candidates are located remotely, a disparate population, or are field based. Advertised selection also allows us to help you achieve true diversity and equality in the selection process. It is an excellent marketing exercise for your product / service and can be used to generate benchmarks for internal talent applications. Advertising has a distinct advantage in significant talent funnel generation attracting both active and passive candidates alike. In addition to attracting talent, we network the response, taking average respondents and networking them for referrals to better-fit talent. Our large media discounts are passed onto you. Adverts can be dual branded or anonymous,

utilising our brand for confidentiality. Advertising substantially accelerates the timescale of an assignment. Professionally written, placed, filtered and networked, Selection Advertising provides a base of candidates highly motivated for the role and employer brand. Database / Portfolio Networking / Cross Border Searches We manage a global Talent Pool of available Rising Stars. These individuals are highly motivated to move. We share information internally ensuring that each relevant consultant can assist on a search. Over 20% of our assignments filled via sharing information between offices or consultants, not something widely practiced to this level of success elsewhere in our industry. By pooling our resources in each locality we can initiate seamless cross border searches across a region to secure the best talent for a role. Online / www / .com Web based job boards - in Europe there are in excess of 2500 job boards and career portals competing for candidate attention - that is in addition to your own career site! We simplify this myriad of choice. Not all executives leave their details online, however many use it as a shop window. We have found that in certain markets the use of the web has proved very effective, when used correctly. The key is knowing where to advertise for a particular role / sector or skill-set. As with print advertising we network responses for richer talent and handle the volumes it can produce saving you time, money and employer brand integrity. We know which sites deliver. Antal International's experience of this tool on a worldwide basis has led to unrivalled partnerships and purchasing power with some of the leading career sites such as Monster's database in 10 countries plus Executivesontheweb, Jobserve, Totaljobs, Globalworkplace, JobPilot, Eurojobs, Stepstone, Careerworld, e-financialcareers and more local, specific sites. This is in addition to our own job board and makes us ideally positioned to advise our clients on best possible solutions and tap the best of the web.