Adecco Takes Inorganic Route to Enter Blue-Collar Temping Space in India

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Adecco India, the Indian arm of the HR services company, announced the acquisition of Ajinkya, India&#39;s leading blue-collar temping company. The first of its kind, organized acquisition in this space allows Adecco a significant foothold in the burgeoning market for blue-collar temping in India and further consolidates its local market leadership. The majority of Adecco&rsquo;s revenues derive from blue-collar temping. Mumbai-based Ajinkya is a niche staffing company focused on blue-collar temping with more than 150 reputed clients and more than 4,500 outsourced employees on its payrolls.<br /><br />Post merger, Ajinkya will become part of Adecco India and will operate as Adecco&#39;s Industrial Staffing Division, headed by C.R. Kale (founding director of Ajinkya). Adecco intends to grow tenfold from the current level to 40,000 blue-collar temps during the next two to three years. Adecco also will actively pursue the opportunity provided by the acquisition to provide industrial workforce to automotive, constructions and oil and gas companies across Europe and the Middle East.<br /><br />Making the announcement, Sudhakar Balakrishnan, CEO of Adecco India, said, "Blue-collar temping is the next big thing in the Indian HR arena considering the all around industrial growth and the increasing openness of players in this sector to practices like temping. Though highly promising, the segment lacks a single large player operating nationally to be able to deliver the volumes required by India&#39;s economic growth besides the ability to deliver nationally. The acquisition is thus both timely and relevant as it weds Ajinkya&#39;s expertise in the blue-collar space with Adecco&#39;s nationwide footprint, brand equity and operational expertise backed with robust technology."<br /><br />According to Kale, "The acquisition has come about at the right time for Ajinkya, which needed to leapfrog to the next level having built a record and market share in this hitherto unorganized niche space. However, the big opportunity is expanding blue-collar temping not only in the Indian market, but also globally, leveraging the demand for the highly trained Indian talent, particularly in the Middle East and European markets. It is here that we saw a strategic fit with a global major like Adecco, which has 7,000 offices in over 60 countries and territories around the world."<br />

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