The Hindu Business Line : Manpower India, ABC Consultants set up joint venture

Dr B.P. Agrawal (left), Founder & Chairman, ABC group, with Mr Soumen Basu, Executive Chairman, Manpower India, at a press conference in Mumbai on Monday. - Paul Noronha

Mumbai , Oct. 3

THE outsourcing-fuelled boom in the IT and IT-related areas in India is attracting global players in the recruitment industry to the country.

As the surge in BPO operations in India continues to shore up demand for IT professionals, global employment services majors are looking at consolidations in the Indian market through strategic alliances or joint ventures with Indian players.

The latest to join the bandwagon is the US-based Manpower Inc, which announced a joint venture on Monday between its Indian subsidiary, Manpower India, and Kolkata-headquartered ABC Consultants. The joint venture will be primarily focusing on IT, IT-enabled services and retail financial services, in the light of the growing demand for professionals in these sectors.

Manpower to hold 74% stake: Under the terms of the agreement, Manpower India has merged the IT, ITeS and retail financial services business practices of ABC's operations with its own operations. While Manpower will hold 74 per cent stake in the joint venture, the Indian partner will hold the rest.

The senior leadership team, together with 180 recruiters and on-going client relationships in these business verticals will transfer to Manpower. Dr B.P. Agrawal, founder of ABC group, joins Manpower India's board as Chairman, while Mr Soumen Basu, Executive Chairman of Manpower India, will continue to lead the extended management team.

ABC's other verticals intact: ABC Consultants will however continue to maintain its independent position in other verticals. "I wish to clarify that ABC has not been sold entirely. ABC's three verticals will now be part of the joint venture, while our other verticals, like manufacturing, engineering, pharma, media, consumer, retail and telecom sectors, will remain intact," Dr Agrawal, Chairman of ABC Consultants, told newspersons here on Monday.

These three verticals account for a share of Rs 20 crore out of ABC's total turnover of Rs 50 crore. "The idea behind the joint venture is to create a synergy between ABC's strong presence in the Indian market and global delivery systems of Manpower, especially as the three sectors require global clients. In ABC, we found a partner that not only shares our values, but also our thirst for industry leadership," Mr Iain Herbertson, Managing Director of Manpower Asia Pacific, said.

Asked whether ABC will totally exit from these sectors after the merger, Dr Agrawal said: "We will retain only some small senior presence in these sectors." He said the demand for recruitment in these sectors was huge and there would not be any "head-on competition" between ABC and the new entity.

Turnover target: The joint venture is targeting a turnover of Rs 50 crore in the first year of operation and Rs 150 crore at the end of the third year. "We want to recruit 2.5 lakh candidates per year at the end of our third year of operation," Dr Agrawal said.

Manpower Inc has a worldwide network of 4,300 offices spread across 72 countries and territories, enabling the company to meet the needs of its 4-lakh customers per year.

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