Manpower Based Industries

Services SECTOR

Introduction

The services sector continued to be the key driver of India’s economic Growth contributing almost 72.5% of gross value added growth in 2017-18 while providing EMPLOYMENT to around 30% of Population (ILO estimates, 2016). The government has initiated many reforms to boost the sector which is expected to grow at 8.3% in 2017-18. India’s Services Sector

State wise estimation: Services sector contributed more than half of the gross state value added (GSVA) in 15 states and UTs. However, regional variation is witnessed in terms of services-GSVA share, with Delhi and Chandigarh are at the top with over 80% share, while Sikkim is at the bottom with 31.7%

FDI in India’s service sector: Total share of FDI Equity inflows to the services sector is 69.6% during 2017-18 (April-October), mainly led by higher inflow in two sectors viz. Telecommunications and Computer Software & Hardware.

India’s Service Trade: India remained the eighth largest exporter of commercial services in the world in 2016 (WTO, 2017) with 3.4% share, which is double the share of India’s merchandise exports in the world at 1.7%. It reflects o Growing importance of the services sector in India’s exports, as it helped in financing about 49% of India’s merchandise deficit in 2017-18 H1 and thus, providing cushion to Current Account deficit (CAD). o Improvement in Baltic Dry Index, which is a freight index and a good proxy for the robustness of trade and shipping services.

Indian Staffing Industry Facts

India has one of the largest flexible staffing workforce numbers in the world, next only to China and the US.[vii]
The government employs a temporary workforce of about 12.3 million[viii]
Flexi staffing market is poised to grow 10% to 15% year-on-year
The retail sector is expected to witness growth to the tune of 10% to 12% per annum, making it the most lucrative option for a massive growth in flexible staffing.
The penetration of contract staff in the IT and [IT-enabled-Services] industry is also likely to increase from 10% to 20% in the next few years.
According to the Indian Staffing Federation, there are at present 1.3 million temporary workers in the organised sector, which is likely to increase to 9 million workers in the next 10 years.

Staffing Industry Trends

Virtual talent marketplaces where automated process are used to rank and scout for fresh talent are proving to be disrupting the staffing industry[x]
Social recruiting is now the norm — 93% of recruiters use or plan to use social to support their recruiting efforts. [xi]
Temporary or contract-based work is on the rise as many of the top talents are taking up freelancing or on contract jobs, in this process, staffing firms will play a pivotal role in easing the relationship between freelancers and their clients.[xii]
Training is the starting point for developing a temporary work-force. A company with training facilities has an edge in terms of an employment-ready and local temporary workforce

Security Management Services Market

The market for security services in India was 00 billion in Fiscal Year 2010 and grew at the rate of about 18.20% CAGR to reach390.00 billion in Fiscal Year 2015. The graph below displays historic growth of the security services market in India between Fiscal Years 2010 and 2015:
The security services industry usually works on a credit period of 60 to 90 days from date of completion of services. Many of the smaller operators pay wages only when they receive payments from the customers while most of the larger national players pay wages on a monthly basis. Therefore, the security company has to organize substantial bank loans or funds to meet monthly wage payments and service tax compliance. In addition, security services is a low margin, high volume business. All of these reasons make the security services industry a WORKING CAPITAL intensive business. This operating model is not expected to undergo any evolution in the next few years. The primary costs for companies include manpower-related expenses including salaries, Employees’ Provident Fund (“PF”) and insurance.
For the organized sector, pricing for security services is largely dependent on the minimum wages prescribed in each state. Organized companies adhere strictly to the norms related to PF and Employees’ State Insurance Act (“ESI”) and these norms are directly linked to minimum wage payment obligations. According to Frost & Sullivan’s discussions with organized security service providers, pricing has increased at an Average rate of 8.00% to 10.00% over the last five years.
However, lately, there has been a significant increase in the wages by up to 50.00% in a few big cities including Bengaluru due to the higher cost of living, benefits to retain guards and cost of compliance with human Resources and labour statutes. Since unorganized companies do not comply strictly with labour laws, their pricing is more market driven and is low. A more stringent enforcement of labour laws and the increasing cost of compliance will put pressure on the unorganized service providers and work in favor of organized companies.
The industry faces high attrition rates, but that does not mean the guards are exiting the industry. When a large contract is lost or expired, the guards already employed in that establishment will be absorbed into the payrolls of the company that wins or takes over the contract. This is a common business practice in the Indian security services market
The primary end-user segments for security services are the IT and ITES sectors, industrial, Banking, financial services and insurance sectors. Together, these segments constitute approximately 80.00% of the total business of organized companies and have adopted global best practices in terms of security services, with high quality control for deployed guards. Organized industry participants cater to these segments chiefly due to their clear emphasis on compliance.
The security services market is highly fragmented and consistent growth in demand has led to the entry and expansion of competition. The following chart displays the competitive landscape for the security services market in India for the Fiscal Year 2015

Electronic Security Market

Electronic security services involve the installation and commissioning of security systems, products or equipment along with operations and maintenance (“O&M”) services. Electronic security systems include CCTV, alarm systems, access control systems, and other safety related systems such as fire alarms, automatic fire suppression systems and other electronic equipment installed for security purposes.
Electronic security services are provided by large private security companies such as G4S, SIS, and TOPSGRUP who provide both product installation and O&M services. There are several layers in the value chain of this industry, including original equipment manufacturers (“OEMs”), distributors, and systems integrator who compete with the private security service companies.
The electronic security services market in India was estimated at 24,300.00 million in Fiscal Year 2011 and recorded growth at a CAGR of 25.60%, reaching a value of60,500.00 million in Fiscal Year 2015. Demand is driven by increasing awareness about safety, and investments in public and private establishments

Facility Management Industry:

Facility management refers to the Outsourcing of services and functions which are considered non-core activities for a business. In order to improve building maintenance and the efficient operation of facilities, coordinated effort between people and spaces is required. Facility management services can broadly be classified into two types, namely:
hard services: including mechanical, electrical and plumbing maintenance, asset management strategies, planned preventive maintenance services, short-term repairs, heating, ventilation and air-conditioning (“HVAC”) issues, among others; and
soft services: including cleaning and housekeeping, pest control, catering, gardening and landscaping, security services, office support, mail room support, guest house or service apartment management, laundry, production support, among others.
For Fiscal Year 2015, hard services accounted for 40.00% of the market share of the overall facility management services market and the remaining 60.00% share is from the soft services market. Cleaning services contribute around 50.00% of the total soft facility management services market, followed by pest control and other soft facility management services (such as office support, gardening and landscaping, laundry & guest house management, food and pantry services) at 20.00% and 30.00% share, respectively

Cleaning Services Industry in India

Cleaning services refers to housekeeping or janitorial services that improve and address Health and hygienic concerns. The cleaning industry is considered a separate segment within facility management because of a major focus on hygiene and better care required in certain end-user verticals.
Market participants offer services in three broad categories, namely, standard, specialized, and green cleaning. Standard cleaning includes house-maid/domestic cleaning service, work place and wash room hygiene, carpet and floor care, window and façade cleaning, and vacuuming and upholstering, to name a few. Specialized cleaning services involve cleaning requirements in healthcare, Municipality (road and highway cleaning), and industrial cleaning. Finally, green cleaning is the usage of non-toxic or organic cleaning solutions (having low or zero Volatile Organic Compounds (“VOC”)), primarily driven by the growth of the green buildings industry in India.
Driven mainly by the growth of the real estate sector, the cleaning services market accounted for 30.00%, that is, 30,000.00 million of the overall facility management services market in India for Fiscal Year 2015. The cleaning services market grew at 19.00% CAGR from12,570.00 million in Fiscal Year 2010 to reach `30,000.00 million in Fiscal Year 2015.

Manpower-based industries are those that rely on the labor of people to produce goods and services. These industries are essential to the economy, as they provide jobs for millions of people and produce the goods and services that we use every day.

agriculture is one of the oldest and most important manpower-based industries. It involves the cultivation of crops and the raising of Livestock. Agriculture is essential to our food supply, and it also provides jobs in processing, packaging, and distribution.

Construction is another important manpower-based industry. It involves the building of new structures, such as homes, businesses, and roads. Construction is a major driver of economic growth, and it provides jobs for a wide range of workers, from skilled tradespeople to laborers.

Manufacturing is the process of converting raw materials into finished goods. It is a major employer in many countries, and it produces a wide range of products, from cars to computers. Manufacturing is a key driver of innovation, and it is constantly evolving to meet the needs of consumers.

Mining is the extraction of Minerals from the earth. It is a dangerous and difficult job, but it is essential to the production of many goods, such as metals, coal, and oil. Mining is a major employer in many countries, and it plays a vital role in the global economy.

Retail is the sale of goods to consumers. It is a large and diverse industry, and it employs millions of people around the world. Retail is a key driver of economic growth, and it is constantly evolving to meet the needs of consumers.

Transportation and Warehousing is the movement of goods and services from one place to another. It is a vital part of the global economy, and it employs millions of people around the world. Transportation and warehousing is a complex and ever-changing industry, and it is essential to the smooth functioning of the global economy.

Utilities provide essential services, such as electricity, water, and gas. They are essential to the functioning of modern Society, and they employ millions of people around the world. Utilities are regulated industries, and they are subject to strict safety and environmental regulations.

Accommodation and food services provide food and lodging to travelers. They are a major employer in many countries, and they play a vital role in the tourism industry. Accommodation and food services are a diverse industry, and they offer a wide range of jobs, from cooks and waiters to hotel managers.

Education is the process of teaching and Learning. It is essential to the development of individuals and societies, and it employs millions of people around the world. Education is a complex and ever-changing industry, and it is essential to the success of individuals and societies.

Health care and social assistance provide services to people who are sick, injured, or disabled. They are essential to the well-being of individuals and societies, and they employ millions of people around the world. Health care and social assistance are a complex and ever-changing industry, and they are essential to the health and well-being of individuals and societies.

Professional, scientific, and technical services provide services to businesses and individuals. They are a diverse industry, and they offer a wide range of jobs, from accountants and lawyers to engineers and scientists. Professional, scientific, and technical services are a rapidly growing industry, and they are essential to the success of businesses and individuals.

Management of companies and enterprises provides Leadership and direction to businesses. It is a complex and challenging job, and it requires a high level of skill and experience. Management of companies and enterprises is essential to the success of businesses, and it employs millions of people around the world.

Administrative and support services provide support services to businesses and individuals. They are a diverse industry, and they offer a wide range of jobs, from secretaries and receptionists to accountants and lawyers. Administrative and support services are essential to the smooth functioning of businesses and individuals, and they employ millions of people around the world.

Arts, entertainment, and recreation provide services that entertain and engage people. They are a diverse industry, and they offer a wide range of jobs, from actors and musicians to dancers and artists. Arts, entertainment, and recreation are essential to the Quality Of Life, and they employ millions of people around the world.

Other services provide a wide range of services to businesses and individuals. They are a diverse industry, and they offer a wide range of jobs, from security guards and janitors to travel agents and real estate agents. Other services are essential to the smooth functioning of businesses and individuals, and they employ millions of people around the world.

Manpower-based industries are essential to the economy, as they provide jobs for millions of people and produce the goods and services that we use every day. These industries are constantly evolving to meet the needs of consumers, and they play a vital role in the global economy.

What is the difference between a manpower based industry and a capital based industry?

A manpower based industry is an industry that relies on the use of labor to produce goods or services. A capital based industry is an industry that relies on the use of capital, such as machinery and equipment, to produce goods or services.

What are the advantages and disadvantages of manpower based industries?

The advantages of manpower based industries include:

They are often labor-intensive, which means that they can create a lot of jobs.
They can be relatively low-cost to operate.
They can be flexible and adaptable to changes in the market.

The disadvantages of manpower based industries include:

They can be less efficient than capital based industries.
They can be more susceptible to changes in the labor market.
They can be more difficult to scale up or down.

What are the advantages and disadvantages of capital based industries?

The advantages of capital based industries include:

They are often more efficient than manpower based industries.
They can be more scalable than manpower based industries.
They can be more resistant to changes in the labor market.

The disadvantages of capital based industries include:

They can be more capital-intensive, which means that they require a lot of Investment to get started.
They can be more expensive to operate than manpower based industries.
They can be less flexible and adaptable to changes in the market.

What are some examples of manpower based industries?

Some examples of manpower based industries include:

Agriculture
Construction
Retail
Hospitality

What are some examples of capital based industries?

Some examples of capital based industries include:

Manufacturing
Mining
Utilities
Transportation

What are some of the challenges facing manpower based industries?

Some of the challenges facing manpower based industries include:

Rising labor costs
Declining demand for labor
Increased competition from automation
Skill shortages

What are some of the opportunities facing manpower based industries?

Some of the opportunities facing manpower based industries include:

Growth in emerging markets
Increased demand for labor-intensive goods and services
Development of new technologies that can improve productivity
Increased investment in education and training

What are some of the trends that are affecting manpower based industries?

Some of the trends that are affecting manpower based industries include:

The rise of automation
The decline of manufacturing
The growth of the service sector
The aging population
The increasing demand for skilled workers

What are some of the ways that manpower based industries can adapt to these challenges and opportunities?

Some of the ways that manpower based industries can adapt to these challenges and opportunities include:

Investing in new technologies
Developing new skills
Retraining workers
Investing in education and training
Partnering with other industries
Developing new markets

Question 1

Which of the following is not a type of industry?

(A) Manufacturing
(B) Service
(C) Manpower
(D) Agriculture

Answer
(C)

Question 2

Which of the following is not a characteristic of a service industry?

(A) It produces intangible goods.
(B) It is labor-intensive.
(C) It is capital-intensive.
(D) It is customer-oriented.

Answer
(C)

Question 3

Which of the following is not a characteristic of a manufacturing industry?

(A) It produces tangible goods.
(B) It is capital-intensive.
(C) It is labor-intensive.
(D) It is customer-oriented.

Answer
(D)

Question 4

Which of the following is not a characteristic of an agriculture industry?

(A) It produces food and fiber.
(B) It is labor-intensive.
(C) It is capital-intensive.
(D) It is weather-dependent.

Answer
(C)

Question 5

Which of the following is not a factor of production?

(A) Land
(B) Labor
(C) Capital
(D) Manpower

Answer
(D)

Question 6

Which of the following is not a type of economic system?

(A) Capitalism
(B) Socialism
(C) Communism
(D) Manpowerism

Answer
(D)

Question 7

Which of the following is not a goal of economic growth?

(A) To increase the standard of living.
(B) To reduce Unemployment.
(C) To increase Inflation.
(D) To increase productivity.

Answer
(C)

Question 8

Which of the following is not a type of Economic Development?

(A) Primary
(B) Secondary
(C) Tertiary
(D) Manpower

Answer
(D)

Question 9

Which of the following is not a factor that affects economic development?

(A) Natural Resources
(B) Human resources
(C) Capital
(D) Manpower

Answer
(D)

Question 10

Which of the following is not a type of economic inequality?

(A) Income inequality
(B) Wealth inequality
(C) Opportunity inequality
(D) Manpower inequality

Answer
(D)