Starting a recruitment agency in India? Make it happen in 5 easy steps.


As the second most populous country, India is the most attractive market for recruitment agencies. In 2020, 900 million people (67% of India’s population) belonged to the working age group of 15-64. By 2030, this number is expected to increase by another 100 million (The Hindu). It makes India a massive pool of talent companies across the globe look to hire. It is where new recruitment agencies can find opportunities to channel India’s talent pool to jobs across the globe.

1. Determine your niche

Understand the current market trends to decide which sector you must choose. Do extensive research on sectors like engineering, finance and banking to determine the demand for candidates in these growing sectors. It will help you determine a niche sector that can generate maximum business for you.

2. Identify competitors

Do a quick research on the recruitment agencies that work in the sector you have decided for yourself. It will help you determine your strengths to succeed in the long run. 

Competitor analysis

Analyse direct and indirect competitors: 

Direct competitors are other recruitment agencies in your industry and your geographical area. Indirect competitors are online recruitment websites and in-house recruitment teams hiring candidates for the same positions as your agency.

Write an overview of your competitor’s business and answer critical questions:

  • What are their strengths and weaknesses?
  • What does their service look like?
  • Can you provide superior service?
  • What is their pricing model?
  • Can you offer competitive pricing?

3. Create a marketing plan

Create a blueprint of how you want to present yourself to clients and candidates. Create a detailed marketing plan to promote your agency offline and online. With an effective strategy, you will have the chance to present yourself to the world on digital platforms. Market appealing content on social media, and run ad campaigns that reach the right audience and are received well. 

Also, create a recruitment strategy, and write a clear plan detailing your approach when a potential client reaches out to you to take care of their recruitment needs.

4. Understand local laws and obtain Recruitment Agency (RA) Licence

Another important consideration is understanding the national and state laws on labour practices as per the Indian constitution. It will save you from potential issues in the future as you start your business operation.

Also, Recruitment Agency Licence is mandatory to employ Indian citizens for overseas jobs. To promote yourself from a domestic recruitment agency to global, obtain RA Licence. Also, list yourself under the Protector General of Emigrants as per the Emigration Act, 1983.

5. Adopt tech solutions

The pace of technological adoption in India has revolutionised how companies deliver services. Likewise, it has massively impacted how recruitment is carried out in India.

Ensure you adopt technological solutions that evolve with time. PyjamaHR applicant tracking system is one such softwares that makes a recruiter’s job easier. By deploying it, recruitment agencies simplify their recruitment process, automating repetitive tasks and speeding up candidate sourcing, screening and interview process. 

PyjamaHR applicant tracking system

So, if you are a new recruitment agency, follow the above tips. Also, consider adopting the PyjamaHR ATS. Book a demo or sign up now to start using it right away. You will have the edge over your competitors in terms of efficiency and agility to grow your business.

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