The Bengaluru-based company, which offers staffing, workforce management and technology outsourcing services, ended the June quarter with a headcount of 597,000. It has since added at least 6,000 employees, chairman Ajit Isaac told ET.
“We are one of the largest companies in the world in terms of workforce and perhaps the youngest to achieve this in a period of 17 years,” he said.
Quess, founded by Issac in 2007, has Toronto-based Fairfax as its largest shareholder with a 34% stake.
Vasanthi Srinivasan, professor of Human Resources at IIM Bangalore, said Quess has contributed in three ways. “First, they are moving low-skilled workers into the formal sector on a large scale, ensuring minimum wages and social security,” Srinivasan said. “They are creating jobs amid concerns about jobless growth, and third, most of the new employees are first-generation workers from their families. On the job, they gain skills and a sense of identity by being part of a large company.”
Experts say staffing firms are emerging as structurally important for the Indian economy as the government increases focus on job creation.
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The disinvestment plan is still on trackThe company has filed a petition with the National Company Law Tribunal (NCLT) seeking approval of its proposal to split the company into three as it has received no-objection letters from the National Stock Exchange and the Bombay Stock Exchange.
On February 16, Quess’ board decided to split the company into three separate listed entities (Quess Corp, Digitide Solutions and Bluspring Enterprises), which the chairman said would sharpen management focus and help create tailored capital allocation strategies for each platform and unlock value for shareholders.
According to the proposal, Quess will handle workforce management after the business split, while business process management, insurance services and HR outsourcing will remain under Digitide’s control. Bluspring’s businesses will include facility management, industrial services and investments.
The proposal still needs approval from NCLT, shareholders and regulatory authorities. Isaac expects the process to be completed in the first quarter of 2025-26. Guruprasad Srinivasan, the current chief executive, will lead Quess after the demerger, the chairman said.
“Our staffing and payroll business is already the largest in India, while the technology business is in the top three,” Isaac said. “Similarly, our operational asset management business is the largest by the number of services we provide. So, all of them have a distinct leadership position in the market, and the demerger will give them the ability to attract differentiated pools of capital.”
By creating independent, focused entities, each can leverage its core strengths, improving operational efficiency and strategic clarity, ultimately driving superior returns for shareholders, he said.
Digitide aims to be a $1 billion company in about five years, compared with the $320 million in revenue generated by the companies that will join it, Isaac said, highlighting the growth potential that will be unlocked by the spinoff.
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