Security loses to cost cutting

Corporates have let go over 50% of security guards eagerly hired after 26/11 due to budget issues

Security loses to cost cutting

Corporates have let go over 50% of security guards eagerly hired after 26/11 due to budget issues

Security was the buzzword after last year's terror attacks. Everyone individuals, companies and corporates were on a let's-hire-security-guards spree.
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But now, a year later, security agencies reveal that the guards have been sent back and their agreement with the companies withdrawn.
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The bigger security agencies saw a rise of over 60 per cent and the smaller ones registered a growth of 80-90 per cent immediately after the attacks.
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However, with time, the companies felt that the guards were a burden on their budget, especially during the economic slowdown. This meant 50 per cent of the guards were withdrawn.
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Amar Sukhi, managing director, Security & Personnel Services Pvt Ltd, a leading security providing agency, said, "There was a sudden surge and in the similar way there was a decline too in the demand of the security guards after the attacks," said Sukhi.

Budget constraints

A real estate company in Lower Parel that had hired nearly two dozen security guards after the attacks withdrew them by mid-2009.

The reason that they gave to the service provider was budget constraints.

Gadgets in demand

This also meant that there was a demand for security gadgets like CCTV cameras, as they were perceived as one-time investments.
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Nilendu Mitra, senior vice president, corporate communications, Topsgrup, said, "There was a decline in the demand for guards some months after 26/11, but companies are more gadget savvy now and need guards who can handle such equipment."

According to Pramoud Rao, managing director of Zicom Electronic Security Systems, the trend of hiring guards and then withdrawing them happens after every terror attack.

Arms Licences

After the attacks, several security agencies put forward requests to the police for more arms licences. They believe that citizens feel safer when they see a guard with a gun in hand.