Some of the drivers that have enhanced the importance of the PSS are indicated below:-
(a) Inadequate Police to Citizen Ratio. Shortage of police personal and its inability to cater to the needs of the population.
(b) Rising Fear of Terror Strikes. A series of terrorist attacks in metros in recent years have heightened the need for security services among corporate, offices, hotels etc.
(c) Rapid Economic Development. Explosive growth of certain key sectors such as retail, real estate, infrastructure and financial services has led to a rising demand for private security services.
Driven by the increasing demand for the private security services in India, both domestic as well as international players are looking at increasing their presence in the sector by undertaking mergers and acquisitions.
Challenges Faced by the PSS:
Even though the opportunities in the security services are plenty, the sector has its own challenges. Some of these are:-
(a) Lack of Skilled Manpower. The PSS is facing an acute shortage of
manpower ranging up to 30%, which adversely affects its ability to provide trained guards to the environment.
(b) Arms Laws in the Country. The present arms law does not allow private security companies to hold and issue weapons to their employees.
(c) Fly-by-Night Operators in the Unorganized Sector. The boom in the private security market has led to the entry of various fly-by-night operators who account for over 30% of the market.