08/06/2015

Development of Private Security Services:



The private security services industry is one of the largest employers in India. There are around 6–6.5 million private security personnel employed across the country 1,2,3 , and this is expected to continue to grow in the future. The sector is involved in skill development and employment of backward, economically weaker sections of our society, particularly from the rural and semi-urban areas of the country. The sector is particularly interesting considering that despite the e
conomic slowdown, the industry is growing at a rapid pace. 

In the last couple of decades, the private security services industry has witnessed the emergence of home grown private players as well as entry of multinational companies. The high growth potential and increase in organized play makes it an attractive market for both international as well as Indian players. However, the industry continues to face challenges around low compliance to regulatory norms, competition from small, unorganized players and consequently, margin pressures due to competition and increasing compliance and manpower costs. 

In spite of its significance to the Indian economy and its role in employment creation, particularly for the lower strata of the society, the private security industry is not well tracked and understood. Moreover, there is lack of any credible source of information/knowledge about the industry. In this context, this report is aimed to undertake a study of the Indian private security services and allied opportunities to assess the market potential and future growth; to understand industry trends and prevalent business models; and to articulate/state the future growth plans of key industry players. The study covers key business segments of the private security services industry, such as manned guarding and cash services as well as allied services such as electronic security services.