The Indian facilities management market is estimated to grow 17 per cent to cross USD 19 billion mark over the next five years, says a report.
“The swiftly growing services sector is creating huge potential for FM services, which is anticipated to grow at a CAGR of around 17 per cent during 2015-2020 and reach to approximately USD 19.4 billion by 2020,” the report by Global Infrastructure Facilities and Project Managers Association (GIFPMA) said.
The report pointed out that various factors such as boom in real estate, increasing awareness levels, growth in retail and hospitality sectors are the major drivers of this sector.
“In light of the immense growth potential that the sector promises, many players, including foreign players, have dotted the Indian market… India’s service sector is the fastest growing part of its economy,” the study said.
As per the report, the overall services sector held 33.3 per cent of GDP (at current prices) in 1950-51 and it grew to 64.8 per cent in 2012-13.
Commenting on the findings, GIFPMA President Amit Raual said: “Companies are increasingly concerned about the skills of the manpower provided by them with changing needs of the customer… It was also found that the qualification and the minimum salary of the manpower vary with the type of service to be offered.”
As per the report, with administrative and HR departments of around 300 companies across India, 87 per cent of the respondents expect knowledge of basic English, 87 per cent of them expect dress code and 73 per cent expect tidiness and basic etiquettes.
“Almost 93 per cent of corporates are concerned about the police verification of the people deployed at sites,” he added.
Talking about the salary structure, Raual said it varies with the type of service to be offered, which is lower in soft services.
GIFPMA analysis highlights that soft services is dominating the market with the share of about 65 per cent, in which housekeeping and security occupy large shares of 45 per cent and 34 per cent respectively.
“HVAC/Electro-mechanical is clearly dominating the hard services sector and is expected to occupy 90 per cent of the market in 2015,” it added.
As per the report’s finding, more than 60 per cent of these services are performed in-house, but this trend is changing rapidly.
“The corporate sector, especially IT/ITES, BPO/KPO and banking and finance sectors are rapidly inclining towards outsourcing the services,” the study said.
Research also found out that, currently 80 per cent of the services offered are on a sub-contractual basis, but it is expected that the trend will shift towards integrated facility management as organised players are entering the market.
Leave Your Comment
4 years ago
Analytics market in India, which clocked revenues of about USD 1 billion in the...
2 years ago
Economic stability in developed countries will fuel growth in the IT...
5 years ago
Private equity major 3i Group Plc is in talks to exit its two-and-half-year-old...