Chennai: Tamil Nadu has been ranked first in terms of market share of outsourcing business in the southern region in a study by the Confederation of Indian Industry (CII).
As per the study by the industry body, Tamil Nadu enjoys a 33 percent share of the outsourcing sector in South, closely followed by Andhra Pradesh with 26 percent, Karnataka with 25 percent and Kerala with 16 percent.
The report on 'Manpower Outsourcing in Southern States' by CII said there were an estimated 114 million employees employed in outsourced roles across various sectors in South India, accounting for 24 percent of all-India employment.
The manufacturing sector topped the list of sectors relying on outsourcing, accounting for 44 percent of all contracts, followed by retail (20 percent) and the government (19 percent) sector.
Noting that there are around 30,000 staffing providers and contractors in the southern region, it said these players are registered with the Labour Department and supply manpower to meet the requirement of various industries.
The report said the organised staffing service was valued at Rs 120 billion and there are 8,500 service providers in the southern region alone. These service providers offer staffing solutions to various industry verticals across different services, including software and engineering, and supply white, blue and grey collar workers.
Blue collar employees account for 58 percent of the total number of employees, grey collar another 31 percent and white collar workers for the balance 11 percent, it added.