MeritTrac eyes higher non-IT segment biz

Bangalore-based skills assessment company, MeritTrac, is expecting the non-IT segment of its business to grow significantly over the next few years.

MeritTrac does skills assessment of candidates using a standardised process that ensures consistency of quality of the candidates on the platter of the recruitment board of the client company.

The non-IT segment rose from a meagre 2-3 per cent in 2006 to nearly 20 per cent in 2007, and is expected to touch 25-30 per cent by next fiscal. The growth rate in the non-IT verticals have been phenomenal at nearly 200 per cent on a year-on-year basis, said Arvind T, Vice President, key verticals, MeritTrac. "We expect to maintain this growth rate for the coming three to four years," he added.

The potential for the skills assessment market in the non-IT businesses is very large, said Arvind T. It is estimated between Rs 475-500 crore in India.

The non-IT clientele of the company, like ABB, Cholamandalam DBS, ITC, ICICI Bank, UTI Bank and Metlife, has been growing steadily over the past few years. Of the different verticals in the segment, banking, financial services and insurance is the largest, with retail coming a close second, said Arvind.

Manufacturing, healthcare, and public sector undertakings are among the rest.

Nealry 10-15 per cent of the total assessments conducted every month by MeritTrac are for non-IT companies, Arvind said.

Assessments are delivered overseas as well, to countries like Brazil, China, Costa Rica, Mauritius, and Philippines.

Presently, the overseas business segment is minimal at around 2-3 per cent of our total turnover, said Arvind.

"However, we are looking at growing aggressively both in India and in overseas markets", he added.

A joint venture with a Philippine firm is lined up, he mentioned adding that the joint venture is expected by the first half of next year. It will offer the services of MeritTrac through this overseas arm.