Law and order problems: An almost unlimited demand for private security firms

Some of the more reputed firms report turning away clients; many find it hard to recruit quality personnel.

KARACHI:

The deterioration in the law and order situation in Pakistan over the last two decades has been a boon to at least one industry: private security firms who have seen their businesses expand even as many others have struggled with the challenging circumstances.

That is the assessment of Rashid Ali Malik, a retired army brigadier and the chairman of the All Pakistan Security Agencies Association (APSAA), an industry group.

Malik, who owns Security 2000 said there is a huge supply-demand gap in the industry. Business is so good, he says, that he has had to turn away around 20 clients in Karachi alone.

The secret to his success, he says, is finding the best men for the job. Malik’s firm recruits almost exclusively from military retirees, who are already trained in the use of weapons and are disciplined. An additional advantage is that military retirees often have benefits such as pensions and their own houses, which means that they are less susceptible to temptation than guards from other backgrounds.

The retired brigadier said currently some 500 security providers are operating in Pakistan. Out of those, some 100 don’t even have operating license and are sub-standard, he said, an equal number (100) do not come under the umbrella of APSAA – that regulates some 300 such companies.

The deteriorating law and order situation of the country, over the years, has prompted a dramatic increase in demand of private security for businesses – not to mention the elite of the country living in posh localities. However, there are not many professional security providers to meet this growing demand.

Many security companies do not even have an office, Malik said. “One such company was even caught operating from a car out of Lahore,” he added.

There is a huge scope for new comers despite competitive and challenging market environment, Malik said, but one has to be honest and sincere. “Security providers have a greater responsibility now. You don’t have an off-day and remain alert even on national holidays such as Eid,” he continued, adding, “It’s a 24/7 commitment.”

Malik’s Security 2000 mainly covers large institutional clients: Faisal Bank, Dubai Islamic Bank, and Barclays Bank to name but a few. It also covers important local operations such Karachi Stock Exchange and Central Depository Company of Pakistan.

One of the challenges in operating the business, he said, is to find manpower. “For example, I mainly recruit my guards from Punjab and KP – majority of them are ex-military men who are well-suited for the job of a security guard,” he said. “It’s hard to find these people in Sindh,” he added.

Once you find such men, he said, the other challenge is to bring them all the way south to Karachi. Owing to growing demand in upcountry especially in cities like Islamabad and Lahore, many potential recruits prefer to find jobs over there so they could stay close to home, he said.

To deal with this challenge, he said, one needs to offer better incentives – higher salaries for example – to these people so they can come to Karachi.

Malik’s clients are multinational companies thus he charges higher which helps him pay better salaries to his men and maintain the standards his clients expect from him. The story doesn’t end here; he pays all his staff on time – thanks to the advance payments of his clients – and delivers their salaries where his men are deputed. That is part of his strategy to ensure his staff doesn’t think about relocating close to home.

Some companies have started their operations in recent years, Malik said. “With new entrants, the competition has increased. If you fail to provide good services you can’t survive,” he added.

If one can maintain a good standard, he said, he can outperform his competition and cash the market.

Published in The Express Tribune, October 12^th, 2011.