By Narendra Bhalla
New Delhi: India’s private security industry needs a fundamental shift from low-cost, manpower-based contracting to a financially sustainable, professional and technology-driven model, the Central Association of Private Security Industry (CAPSI) has said.
Kunwar Vikram Singh, Chairman of CAPSI, said the private security sector has moved well beyond its traditional role of guarding premises and has become an important component of the country’s security architecture. Security personnel are deployed across residential communities, commercial establishments, factories, hospitals, banks, warehouses, logistics networks and critical infrastructure.
However, the industry faces a paradox: while many security agencies are reporting growth in turnover, several continue to struggle with inadequate profits, working-capital pressures and statutory liabilities. Singh warned that a financially weak security industry cannot remain a reliable partner in protecting people, businesses and critical infrastructure.
A major concern is the continued emphasis on the L1, or lowest-price, procurement model. Singh said security services should not be treated as a commodity and that contracts awarded primarily on price can force agencies to operate at unsustainable margins.
CAPSI has called for a shift towards value-based procurement, where training, manpower quality, technology, supervision, statutory compliance, experience and measurable security outcomes are given appropriate weight alongside price.
The industry is also grappling with high employee attrition. Singh said replacing a security professional involves recruitment, verification, training, uniforms, deployment and supervision costs, apart from the loss of experience and familiarity with individual sites.
CAPSI has advocated creating a professional career structure in which a security guard can progress to senior guard, supervisor, Guarding Officer, security manager and eventually senior security professional. It believes the concept of a professionally trained and certified Guarding Officer could improve employee dignity, productivity, retention and overall security standards.
Another major issue is the working-capital burden caused by delayed customer payments. Security agencies have to pay their personnel every month, even when invoices remain unpaid for 60 or 90 days. Singh said large companies can consequently be forced to finance customers’ security operations.
CAPSI has sought a 30-day payment discipline for undisputed invoices, as well as automatic revision of contract rates when minimum wages, statutory contributions or other government-mandated costs rise.
The association also wants the industry to move from being a manpower supplier to a provider of integrated security solutions. These could combine trained personnel with CCTV analytics, access control, command centres, remote monitoring, mobile patrols, sensors, drones and digital incident-management systems.
Singh said technology should improve productivity and enable better-trained personnel to provide higher levels of protection.
CAPSI is also advocating greater specialisation in sectors such as critical infrastructure, ports and airports, data centres, banking and financial services, logistics, industrial and pharmaceutical facilities, healthcare, electronic security and remote monitoring.
The association has submitted its Surakshit Bharat Vision-2047 to the Ministry of Home Affairs and proposed a framework for “PSI 2.0”, centred on profitable contracts, productive people, technology enablement, professional specialisation, financial discipline and professional regulation.
Singh said profitability should not be viewed merely as an industry demand. A financially stronger security company can invest in training and technology, improve employee welfare, retain experienced personnel and maintain better emergency response capabilities.
The proposed transformation, he said, should take the industry from “guards to Guarding Officers”, from manpower to security solutions and from traditional guarding to integrated security—making profitability a key element of India’s national security capability.
