Housekeeping outsourcing gaining momentum

(News taken from The Financial Express, India: March 17, 2006)

R Ravichandran

Chennai, March 16

Outsourced housekeeping or facility management outsourcing is gaining momentum in India. The high-end non core cleaning industry outsourcing in India is estimated to be around Rs 300 crore and its growing at the rate of 50% annually, said industry sources.

Given the increased competition and globalisation, corporates, hospitals, hotels, retail companies, educational institutions and host of other industries perceive day-to-day cleaning as an important and integral part of their endeavours.

The outsourcing of facility management service range from cleaning of premises, coordination of minor repairs, gardening, procurement of utilities, waste management, attending guests, preparation of food, coordinating the visitior's arrivals and departures and a whole gamut of services, said the sources.

According to sources, employment opportunity in this service industry with specific reference to housekeeping is growing by the day consequent to the rapid growth in hospitality industry, commercial complexes, ITES/ITS/BPO companies, healthcare industry, tourism and multinationals. Quoting industry estimates, the sources said employment oppurtunity in the servise sector is estimated to be manifold, There going to be an addition of 2.2 million jobs in this sector alone in the next five years, sources said. Some of the sectors which offer decent living and act as a catalyst to this industry including aviation, tourism, hospitality and healthcare.

When contacted a senior officicial of Sinar Jernih (India) Private Ltd, one of the facility management consultants in India, said there is huge potential in India. Except hospitality and healthcare sector, the other sectors have not given adequate importance and yet to understand-linedifferance between outsourcing manpower and outsourcing services.

The high-end ninche market for the cleaning industry outsourcing in India should be worth Rs 300 crore per annum and is growing between 10% and 15%. "Apart from the growth of real estate activities as well as increased presence of multinationals in India every year, we believe the housekeeping outsourcing services market expects to touch Rs 500 crore in the next two years," the official said