Teamlease Releases Quarterly Employment Outlook Report April - June 2007

Retail, Media, FMCG reflect highest sector growth at 10%
7% increase in infrastructure employment outlook
Middle management hiring has increased by 10%

Bangalore, March, 2007: TeamLease Services Private Limited, India's largest staffing solutions organization has recently released their third quarterly employment outlook report for the period between April - June 2007.

The report reflects market stabilization both in terms of employment and business outlook for the current quarter. The net employment outlook which remains constant at 81 index points over quarter one and two has increased by 1% in the current period. Whilst the sharp 6% increase in the business outlook in quarter two has decreased by a percent to stabilize at 90 index points.

Sector-wise

According to the report Retail, Media and FMCG have shown the highest net employment outlook growth in the current quarter to touch 86 points, a sharp 8% increase since last quarter and also a 10% increase in net business outlook over previous quarter to touch 90 points. This is followed by infrastructure which has increased by 7% in net employment outlook.

City-wise

The sharpest net increase in employment outlook growth since last quarter has been in Chennai at 19% followed by Kolkata at 7%, Bangalore and Ahmedabad at 4%. The net business outlook increase since the last quarter has been the highest in Kolkata at 8%, followed by Chennai at 6% and Pune at 5%.

Hiring levels

According to the TeamLease report middle management hiring has increased by 10% since last quarter to touch 45 index points whilst junior level has risen by 6% to touch 93 index points in the current quarter.

According to Sampath Shetty, Vice President, TeamLease Services Pvt. Ltd. "With the new fiscal year setting in, business confidence looks positive with the Retail Industry boom taking centre stage once again. Result of which, Indian companies from the organized sector and MNCs are entering into textile, infrastructure and realty industry. This is a reflection of opportunities and growth for companies across the country at macro and micro level. With the new budget not being favorable towards the IT sector policy, it has had its implications in the business confidence across cities like Delhi and Bangalore.

We expect to see increase in rural hiring owing to Banking and Financial services making inroads in to these markets. The BFSI, Infrastructure, Retail and Manufacturing have the maximum opportunities across skill sets which are witnessing a major hiring in the junior to mid level management. At this stage the challenge for organizations would be to match the demand supply of manpower to optimize their market share in this economy growth"

The employment scenario continues to be favorable towards urban hiring which has increased by 3% to touch 43 index points. There is also a step taken in the positive direction towards hiring from the rural belt, reflected by 1% increase since last quarter.

The intention to hire across functions indicate a positive direction for HR and IT, both of which have increased by 3% to touch 21 and 7 index points in the current quarter respectively.

Please find given below last three quarter comparisons and city specific trend comparison details between last and this quarter

ANNEXURE
QUARTER COMPARISON
CITY TRENDS -COMPARISON BETWEEN LAST AND THIS QUARTER
QUARTER COMPARISON SHEET

Net Employment Outlook:

The 'Net Employment Outlook' is derived in Percentages as the difference in the Proportion of respondents reporting an increase in hiring needs and those who report a decline in hiring needs over the next three months.

Quarters	Increase (%)	Decrease (%)	No Change (%)	Net Employment Outlook (%)
Quarter 1 (Oct-Dec 2006)	86	5	10	+81
Quarter 2 (Jan-Mar 2007)	82	1	17	+81
Quarter 3 (Apr-Jun 2007)	83	1	16	+82

Net Employment Outlook growth sector wise:

The Net Increase/Decrease in the Employment Outlook growth sector wise is derived by subtracting the percentage of responses of Quarter 2 from Quarter 3

Sectors	Quarter 1 (%)	Quarter 2 (%)	Quarter 3 (%)	Net Increase/Decrease (%)
IT	88	89	87	-2
ITES	79	90	85	-5
Financial Services	82	85	84	-1
Retail, Media & FMCG	90	78	86	+8
Infrastructure	74	71	78	+7
Mfg. & Eng.	73	71	73	+2

Net Employment Outlook Growth City wise:

The Net Increase/Decrease in the Employment Outlook growth city wise is derived by subtracting the percentage of responses of Quarter 2 from Quarter 3

City	Quarter 1 (%)	Quarter 2 (%)	Quarter 3 (%)	Net Increase/Decrease (%)
Mumbai	95	90	93	+3
Delhi	91	88	76	-12
Bangalore	83	90	94	+4
Kolkata	57	57	64	+7
Chennai	76	74	93	+19
Pune	80	82	76	-6
Hyderabad	72	76	70	-6
Ahmedabad	81	76	80	+4

Net Business Outlook:

The 'Net Business Outlook' is derived in Percentages as the difference in the Proportion of respondents reporting an increase in Business and those who report a decline in Business over the next three months.

Quarters	Increase (%)	Decrease (%)	No Change (%)	Net Business Outlook (%)
Quarter 1 (Oct-Dec 2006)	87	2	11	+85
Quarter 2 (Jan-Mar 2007)	93	2	5	+91
Quarter 3 (Apr-Jun 2007)	91	1	8	+90

The Net Employment Outlook stands at +82% showing an upward trend in the Hiring needs for the third quarter and a Net Business Outlook of +90% shows a steady growth in the Business trend.

Net Business Outlook growth sector wise:

The Net Increase/Decrease in the Business Outlook growth sector wise is derived by subtracting the percentage of responses of Quarter 2 from Quarter 3

Sectors	Quarter 1 (%)	Quarter 2 (%)	Quarter 3 (%)	Net Increase/Decrease (%)
IT	84	96	90	-6
ITES	74	92	91	-1
Financial Services	92	93	91	-2
Retail, Media & FMCG	95	80	90	+10
Infrastructure	93	92	91	-1
Mfg. & Eng.	83	90	87	-3

Net Business Outlook growth city wise:

The Net Increase/Decrease in the Business Outlook growth city wise is derived by subtracting the percentage of responses of Quarter 2 from Quarter 3

City	Quarter 1 (%)	Quarter 2 (%)	Quarter 3 (%)	Net Increase/Decrease (%)
Mumbai	92	97	97	0
Delhi	84	90	75	-15
Bangalore	98	97	89	-8
Kolkata	72	85	93	+8
Chennai	80	87	93	+6
Pune	80	89	94	+5
Hyderabad	80	86	88	+2
Ahmedabad	83	91	93	+2

Employment scenario:

The Net Increase/Decrease in the Employment scenario is derived by subtracting the percentage of responses of Quarter 2 from Quarter 3

City	Quarter 1 (%)	Quarter 2 (%)	Quarter 3 (%)	Net Increase/Decrease (%)
Metro	43	56	52	-4
Class I	35	40	43	+3
Class II	11	4	4	0
Rural	11	0	1	+1

Managerial level hiring:

The Net Increase/Decrease in the Intention to hire across Managerial Levels is derived by subtracting the percentage of responses of Quarter 2 from Quarter 3

Levels	Quarter 1 (%)	Quarter 2 (%)	Quarter 3 (%)	Net Increase/Decrease (%)
Jr. Level	86	87	93	+6
Middle Level	34	35	45	+10
Sr. Level	17	12	11	-1

Intention to hire across functions:

The Net Increase/Decrease in the Intention to hire across Functions is derived by subtracting the percentage of responses of Quarter 2 from Quarter 3

Functions	Quarter 1 (%)	Quarter 2 (%)	Quarter 3 (%)	Net Increase/Decrease (%)
Marketing	31	25	23	-2
IT	18	18	21	+3
Production	17	18	18	0
Others	11	16	11	-5
Finance	11	10	10	0
Administration	8	9	10	+1
HR	4	4	7	+3

Full Time/Part Time hiring:

The Net Increase/Decrease in the Employment practice for Full Time/Part Time is derived by subtracting the percentage of responses of Quarter 2 from Quarter 3

Hiring Resources	Quarter 1 (%)	Quarter 2 (%)	Quarter 3 (%)	Net Increase/Decrease (%)
Full Time	84	90	94	+4
Part Time	1	2	0	-2
Both	15	8	6	-2

CITY HIGHLIGHTS

Bangalore (Jan - Mar 2007)	Bangalore (current Apr -Jun 2007)
Net increase in employment outlook of 7% over last quarter, Quarter 1 at 83% and Q2 at 90% IT and ITES sectors are the major contributors to employment growth*	According to the report, Employment outlook has been on a steady rise with index points touching the highest at 94. In the previous two quarters index points touched 83 (Oct-Dec) and 90 (Jan-Mar) respectively indicating a market demand for increased manpower. The IT sector reflects the highest manpower demands in the country steadily increasing from 16 points in Q1 to 29 points in Q2 to 34 points in the current quarter.
Mumbai (Jan - Mar 2007)	Mumbai (current Apr -Jun 2007)
Second highest hiring growth in Mumbai in the current quarter with index points touching 90 The net increase in business outlook growth over last quarter has been 5% Manufacturing sector is the major contributor for the employment growth* Financial Services sector is second major contributor of employment growth*	Second highest hiring in the current quarter with index points touching 93. Overall hiring growth in Mumbai maintains an overall consistent pace with index points touching the highest in Q1 (Oct- Dec), then falling to 90 in Q2 and stabilizing this quarter Mumbai business outlook remains unchanged since last quarter BFSI sector continue to remain the maximum employment generator in Mumbai over the last three quarters touching 34, 24 and 33 index points respectively. This is followed by the manufacturing and engineering segment BFSI sector is also poised for growth with an increase by 7% since last quarter to touch 33 index points in the current Retail media and FMCG after remaining at a 12 point constant has increased sharply by 8% in the current quarter
Delhi (Jan - Mar 2007)	Delhi (current Apr -Jun 2007)
Employment outlook for the current quarter is third highest in Delhi touching 88 index points The net increase in business outlook growth over last quarter has been 6%	Delhi has witnessed a gradual decrease in hiring with Q1 touching 91 index points, Q2 decreasing to 88 index points and current quarter witnessing a sharp decrease by 11% to touch 76 points. Delhi business outlook has been unsteady with a net increase over last quarter being 6% and a sharp decrease in the current quarter by 15% to touch 75 index points. Sector wise growth - infrastructure seems steady starting off with 16 points in Q1, dipping by 3% in Q2 and stabilizing with an increase by 3% back to 16 points in the current quarter
Hyderabad (Jan - Mar 2007)	Hyderabad (current Apr -Jun 2007)
Net increase in employment outlook of 4% over last quarter, Quarter 1 at 72% and Q2 at 76% The net increase in business outlook growth over last quarter has been 6% IT and ITES sectors are the major contributors to employment growth*	Current quarter employment outlook has witnessed a sharp decrease by 6% to touch 70 points Business outlook has witnessed an increase by 2% over since last quarter
Pune (Jan - Mar 2007)	Pune (current Apr -Jun 2007)
Net increase in employment outlook of 2% over last quarter, Quarter 1 at 80% and Q2 at 82% The net increase in business outlook growth over last quarter has been the second highest in Pune at 9% Manufacturing sector is the major contributor for the employment growth*	Current quarter employment outlook has witnessed a sharp decrease by 6% to touch 76 points Current quarter reflects the third highest business confidence across all cities increasing by 5% this quarter to touch 94% The IT industry which reflected a decrease in hiring last quarter has risen sharply to touch 16 index points current quarter (11% increase)
Kolkata (Jan - Mar 2007)	Kolkata (current Apr -Jun 2007)
The sharpest net increase in business outlook growth over last quarter has been in Kolkata at 13%. Current quarter index points touching 85 Manufacturing sector is the major contributor for the employment growth* Financial Services sector is second major contributor of employment growth*	Employment outlook has been consistently low in the last two quarters touching 57 index points; however the current quarter reflects an increase by 7% to touch 64 points, however remaining the lowest compared to other cities this quarter. The sharpest net increase in business outlook growth over the last quarter is in Kolkata at 8% to touch 93 index points. Although lower than last quarter it maintains the highest business confidence compared to the other cities Manufacturing & Engineering sector has been the major contributor for employment growth - from 21 points in Q1 to 18 in Q2 to 24 points in the current quarter Manufacturing and Engineering segment sector growth has increased sharply to 33 index points a 5% increase over last quarter
Ahmedabad (Jan - Mar 2007)	Ahmedabad (current Apr -Jun 2007)
The net increase in business outlook growth over last quarter has been the third highest in Ahmedabad at 8% Manufacturing, IT and ITES sectors are the major contributors to employment growth*	Employment outlook which started at 81 index points in q1 fell sharply to 76 points in Q2, but the current quarter shows an increase by 4% to touch 80 index points The BFSI sector remains a consistent hiring sector for companies over the last 3 quarters followed by retail media and FMCG Infrastructure has also been a consistent employment generator all three quarters touching 11, 11 and 10 index points respectively
Chennai (Jan - Mar 2007)	Chennai (current Apr -Jun 2007)
The net increase in business outlook growth over last quarter has been 7% IT and ITES sectors are the major contributors to employment growth	Employment Outlook Index of Chennai reflects the sharpest net increase in hiring at 19%. Infact Chennai hiring has gone from 76 index points in Q1 to 74 in Q2 to a sharp increase in current quarter to 93. Chennai reflects the second highest net increase in business outlook of 6% The manufacturing and engineering sector reflects maximum hiring touching 18 index points Sector wise, manufacturing and engineering sector after having been consistent for two quarter at 15 points has shown a sharp increase by 7% this quarter to touch 22 points

About TeamLease Services Pvt. Ltd.

TeamLease Services Private Ltd is India's largest staffing solutions company and the biggest player in the temping (temporary staffing) industry today. TeamLease has been recognized for having pioneered temporary staffing in India. Currently they have over 70,000 employees on the rolls, presence across 464 locations with 23 offices in India.

They are currently India's second largest private sector employer and should be India's largest by end of 2007 after being in business for five years. TeamLease's biggest visible accomplishment is the speed of scaling (have hired somebody every 12 minutes for the last four years, weekends and nights included).

Permanent Staffing Unit (the report is a product from the permanent staffing business unit at TeamLease

In the permanent recruitment domain, TeamLease Services provide executive search, database selection, advertised selection and turnkey solution, with domain experts to anchor specific industry verticals. TeamLease Services head quartered in Bangalore, operates out of 18 other locations across India.

TeamLease adopts a holistic approach to develop company specific staffing solutions that are highly research oriented with process capabilities and a strong technology platform. Our approach is derived from organizational experience and is customized to client needs.

The explosive growth of TeamLease is attributed to the ability to leverage on its national presence and its people & technology platform. The combination of people, technology and focus enables TeamLease to deliver on its committed objective of value creation for all its clients.

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