Cos splurge on execution-focused leaders
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India's executive search firms are experiencing a surprising growth despite broader job market challenges such as layoffs, artificial intelligence (AI)-driven disruptions and heightened geopolitical uncertainties. Business increased 15-25% in the first half of this financial year, and the momentum continues to be strong, fuelled by a broad range of sectors, according to executives from leading search firms.Companies are willing to spend heavily on leaders capable of navigating disruption and executing large investment plans, in an apparent contradiction to the larger market, which is seeing many organisations cutting roles, automating functions and becoming more cost-conscious, they said.Manufacturing, industrials, power, infrastructure and global capability centres (GCCs) are among the strongest drivers, while financial services and technology are showing renewed demand, particularly in specific segments. Consumer, retail and some traditional IT services remain more measured, but even in these sectors, companies are scouting for leaders who can improve productivity and profitability or reposition businesses."The market is growing at more than 25% (year-on-year) on a large base. This is our best year," said Atul Vohra, managing partner of Transearch India. "All consultants are working at 110%," he said, adding that the firm is expanding its teams as demand remains high across sectors.Vohra highlighted thousands of crores of new investment, particularly in manufacturing, chemicals and infrastructure, as a key driver of leadership demand. "We were sceptical in the January-March quarter, fearing that companies would become conservative, but that did not happen. The India growth story is fundamentally strong," he said.Investments and focus on new areas are creating a demand for senior executives even in industries where automation is reducing conventional employment. Large projects in areas such as data centres, renewable energy and clean tech require leaders capable of building businesses and executing complex expansion plans. Technology presents a similar paradox: companies are hiring aggressively in AI and adjacent areas to cash in on new opportunities, even as AI may make some jobs redundant."The last two quarters have been very good, up 25-30%," said Shiv Agrawal, managing director at search and talent advisory firm ABC Consultants. Manufacturing, infrastructure, industrials, power, auto have been particularly strong, he said, while consumer, retail and fast-moving consumer goods have remained sluggish. Technology, he said, was decent, leaving the overall market firmly positive.BTI Executive Search managing director James Agarwal said conditions stabilised after a challenging start to the year. Energy, utilities and core manufacturing, including greenfield and brownfield projects, are performing well, according to him.K Sudarshan, managing director at executive search firm EMA Partners India, said the market was "looking pretty good", with industrial and manufacturing mandates looking particularly strong and financial services showing a revival. He pointed to a flurry of public listings and domestic capital raising as evidence of the market resilience despite geopolitical concerns and foreign investor caution.
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