I was surfing channels idly one fine Sunday morning when I chanced upon a funny TV commercial. This was about a security guard chasing two thugs looking to enter a building in the middle of the night after he was alerted by the screeching security alarm installed. While escaping, one of the thugs tells the other, "You idiot, I had warned you, we shouldn't enter a building with Zicom security systems installed in it!'
This was way back in 2007. I found Zicom - which I hadn't heard of till then - to be a rather unique player to have released an ad in a category that has traditionally shied away from marketing. Post that, the Mumbai terror attacks in 2008 triggered a flurry of ads from companies like Godrej Security Solutions, Tops Security Services etc., which coaxed consumers to take the possibilities of security breaches more seriously.
Growing terrorist attacks, disaster management initiatives, security threat for high networth and high-profile individuals (business men, industrialists, political leaders and celebrities), the growing number of sensitive public places like airports, retail malls, jewellery stores, offices and manufacturing complexes have led to an increase in the demand for security services in India. what's more: it isn't just security devices that are on the rise; manned security services are on the upswing, too.
According to a report by Frost & Sullivan, manned guarding has evolved from simple guarding services to a professional, formal set up. In spite of the growing market for technological solutions such as video surveillance, access control and perimeter intrusion detection, one cannot rule out the importance of human involvement and presence in securing one's assets and facilities. Private security agencies, besides offering manned guarding services, are also adding services such as cash management solutions, vaulting services, risk assessment and audit of a facility, background checks, etc in their overall service portfolio.
In India, there are close to 15,000 private security services agencies that employ around six million people. Ensuring safety and security has played and will continue to play a key role in urban design and planning. The convergence of IT with the security industry means that 'future safe' cities will integrate solutions across large urban areas using software, satellites, wireless and other technologies.
The introduction of the Private Security Agencies (Regulation) Act brought all private security agencies under government control. The central government drafted the law and state governments were responsible for its implementation and enforcement. The Act was a key driver in organising the industry by mandating agencies to undergo certain compulsory training to impart professionalism in the market. This ensures that customers receive swift and professional service coupled with advanced command and control solutions.
This industry is also witnessing mergers and acquisitions and private equity funding as it turns into a more formal structure than the current fragmented landscape. The entry of globally reputed firms and demand for firms with a nationwide base and scale are driving consolidation in this market.
The competition in this space is heating up, as facilities management companies also have their own security guards to secure the premises of residential and commercial complexes. But according to Frost & Sullivan, this industry will move beyond being just a 'guarding' market employing hundreds of security guards and retired service personnel from other central and state security forces; it will have to redesign its value creation process to accommodate technological innovation.
Till then there are a number of issues it needs to resolve, chief among them being poor training provided by security companies. In mature markets, there are many training courses that have to be completed by guards to obtain certification. Second, within the manned guarding industry, there is a significant turnover rate, which affects the efficiency of companies and their ability to scale up. This is due to factors such a low pay packets, poor benefits and the lack of development opportunities.
Clearly, there is a need for manned security to work hand-in-hand with advanced technological devices and not one to the exclusion of the other.
