StepStone India - 03/2001

Increasing, Internet penetration in India has given rise to a vibrant recruitment market. In the year 2000 for example, 1.8 million jobs were advertised on over 100 jobsites. A large number of these jobs were, however, in the IT sector-mainly because IT companies understand the medium better, and have specific skill set requirements.

The online recruitment market in India is currently only a fraction of the total market worth, over (200 million) is expected to make a significant dent in the years to come. The reasons are not difficult to find. India has the 2nd largest English speaking workforce in the world (after USA) and the No. 1 language of the net is English.

Further Internet usage itself is growing in leaps and bounds. This growth of the Internet has been fuelled by growth in the number of Internet access options. A number of players have opened up chains of cyber cafes. Bandwidth prices are falling. The Internet is now available in most metros via cable. And, PC sales are zooming as prices fall and most business establishments become net connected.

The launch of a vast number of jobsites means more jobs in India and overseas are now within easy reach of Indian candidates. Until recently, the US was the major draw, but European countries are now making a beeline at Indian doors, opening up new vistas for Indian IT professionals. Against the 195,000 quota announced by the US, Europe has already expressed its need for nearly 100,000 and this number is bound to explode with a projected shortage of 1.6 million IT workers in Europe by 2002.

Although this will mean more opportunities for Indian professionals, it could also result in shortages within India. To avoid such a scenario, the India Government has recently announced tripling of intake in various technical institutes by 2003. Meanwhile, private IT training institutes are mushrooming with intake soaring to 2.5 million from around 600,000 a year back.


All this augurs well for online recruiters. 80% of the net surfers in India are in the age group of 25 to 35 years - the ideal recruitment target group. A significant number of these are either actually looking for jobs or wouldn't mind shifting if a suitable opportunity comes their way. A subscription to a job alert section is a one time activity, compared to the time and effort consumed in the process of scanning through the number of appointment pages of newspapers and magazines week after week.
No wonder that even though the reach of the traditional media is far greater than that of jobsites, the number of registered users is growing by 300 to 400% every year. Many of the recruitment agencies are now starting up their own jobsites. Meantime, jobsites, to bolster their revenues, have initiated offline activities such as job fairs, print magazines, headhunting services for senior professionals, interviews, screening and other value added services.

StepStone's entry into India is a strategic move. In a four-year period, the number of Internet users is set to cross 50 million, giving a very strong reason to be here for the long run.


Immediately of course, is the gaping skills shortage felt by European clients that are now seeking Indian IT professionals. StepStone intends to service them using one or more of its wide variety of value added services. For example, a company may need to test the candidate, another may want a video interview and a third may opt for StepStone to carry out the whole process of recruitment. StepStone India is gearing up to meet all such requirements and aims to be a one-stop solution for all their needs.


It has opened offices in Chennai, Hyderabad, Bangalore, Mumbai and Delhi- cities that provide over 80% of the IT-trained workforce.


Online connectivity to the U.K. hub enables StepStone India to provide instant feedback to customers. The expert staff on the other hand, is capable of handling from senior to entry-level staffing requirements.


The online recruitment market, with expected growth of 400 to 500% this year, will shake up the recruitment industry in India. With a vision to be the number 1 career portal in India, StepStone is in the right place at the right time. With innovative products and services, and a strong customer care focus, it is poised to take on a leadership position in India.

www.india.stepstone