IT Staffing Industry---the glittering reality...

 

<<LinkedIn profile of Xpheno co-founder reads like this: Specialist Staffing in 2017 & enabled 32 Greenfield GCCs entry. Today, 300 specialist recruiters of Xpheno put 5000 professionals to work every month!>>

Xpheno's growth is exceptional and laudable too...
It's PwC, Deloitte, ANSR Zinnov, and a lot of others who may be enabling these GCCs to set their feet in India!
What's this enabling business of GCCs?
MNCs in India already in commercial business do also set up their GCCs besides many MNCs, who enter with a GCC set up.
Wonder what this enabling means when it is stated by a staffing firm like Xpheno, etc.? The quick answer is "staffing", right? 😅

Let's go to the next part: 300 recruiters put 5000 staff to work every month...
So, in a year, 60000.
Let's do some math to uncover what this "Enabling Plus" business earns for the promoters.
Median IT staff salary: Rs. 13 lacs (most Indian IT service firms have this median, so take it for GCCs too, though from all research GCCs pay 30% over and above this median, which would mean Rs. 17 lacs). so conservatively take Rs. 15 LPA for this calculation!

Recruiter's median monthly salary at staffing firms = Rs. 50K
Average number of staff billed per month per recruiter = 17 for 1st Month and cumulative for next 11 months (Just to aggregate for a year)
Monthly GCC staff salary: Rs. 1.25 L
Billed at 20% over salary= Rs. 25K Per Month
For 17 staff for 1st month = Rs. 425K, which is 8.5 times the recruiter's wage...
Even with 50% attrition (dent to billing) and even when cost plus margin is halved to 10%, a single recruiter would bill for Rs.55 Cr a year...

Achha dhandha hai guru!