TeamLease Services, a recruitment and human resources services company headquartered in Bengaluru, is aiming to hire up to 50,000 new employees in general staffing in FY25, according to its Chief Financial Officer (CFO), Ramani Dathi. The CFO said that this goal highlights a strategic shift towards tier-three and four cities, reflecting the evolving employment scenario in India.
“Our target is to create 50,000 net new jobs in general staffing next year, with a focus on non-IT sectors. This growth would be particularly pronounced in tier three and tier four cities, where we’re witnessing a notable shift in hiring preferences post-pandemic, as both employers and employees increasingly favor non-metro locations,” Dathi told ETCFO.
The CFO said that TeamLease is targeting a 20-23 per cent increase in top-line revenue for FY25, accompanied by a substantial 25 per cent growth in profits. This growth is expected to be driven by strong demand across multiple industries, including FMCG, retail, e-commerce, BFSI, and manufacturing.
“We are confident about achieving a 20-23 per cent top-line growth and a 25 per cent increase in profits for FY25. Our focus on diverse industries positions us well to capitalise on market opportunities,” said the CFO.
TeamLease is leveraging its presence in key sectors to drive its growth strategy. The FMCG, retail, and e-commerce sectors alone are expected to contribute to 30 per cent of the company’s growth in the coming year. Additionally, BFSI and manufacturing sectors are also set to play crucial roles.
“Manufacturing, particularly in the areas of smartphone production, chip manufacturing, and clean energy, is showing great promise. We anticipate manufacturing alone to account for over 15 per cent of our net growth,” the CFO noted.
IT services recovery
While the company remains optimistic about growth in non-IT sectors, the recovery of the IT services sector remains uncertain. Despite this, the company’s specialised staffing segment continues to benefit from the growing demand from GCCs and product companies.
“We don’t have clear visibility on the recovery timeline for IT services. However, the growth in GCCs and product companies is helping us maintain our revenue run rate. If IT services recover by mid or end of FY25, we could exceed our current growth targets,” the CFO said.
Impact of election results
The election results are critical for the job market’s stability. TeamLease is particularly focused on the implementation of new labour codes, which aim to simplify and digitise labour filings, promoting formal employment and compliance.
“As long as we have a stable government, we don’t foresee any major disruptions. The new labour codes, which simplify 44 labour laws into four, will encourage more companies to hire formally, providing a significant boost to organised employment,” the CFO said.
Labour reforms
The labour reforms, which have been approved by both houses of parliament and are awaiting implementation, are expected to bring about a significant shift in the employment landscape. These reforms aim to reduce the compliance burden on companies and increase formal employment.
“By moving towards digital labour filings and simplifying compliance, these reforms will encourage more companies to hire formal employees. This will be a game-changer for the industry,” the CFO said.
TeamLease is optimistic that these changes will further consolidate the organised employment sector, providing a tailwind for growth in the coming years. With a clear strategy and a focus on key growth sectors, the company is well-positioned to achieve its ambitious targets for FY25.
