Here’s How India Becoming a Gig Economy
In the shifting business ecosystem, gig model of workforce is evolving beyond its use for pure situational augmentation to become a prominent capacity and capability development model that will emerge as a key component of the bended workforce model of the future. According to NASSCOM's report "DECODING GIG ECONOMY", 49 per cent Indian companies are currently employing Gig workers. Around half of the Indian industry is actively engaging in the Gig work model, as a flexible capacity scale-up and cost reconstitution model that will become a prominent source of specialist talent in the next 2-5 years.
What is the Gig Economy?
A gig Economy is a free and global market where companies and contractors (independent workers) set short-term and on-demand professional relationships, or "gigs" that are flexible and skill-based tasks or projects.
At present, NASSCOM's report states that IT Services firms have seen higher levels of Gig hires for standardized delivery roles, yet, in most companies, Gig headcount is well below 10 per cent relative to the overall headcount.
The cited report states that nearly half of India Inc. employs Gig Workers, tech sector leading at 60 per cent, although at an aggregate level, Gig hires are only 10 per cent of the total workforce.
Some key findings about the Indian Gig economy are:
- Indian Tech sector has the highest Gig workforce base of all sectors and is considered an established Gig player. While majority of the sector employs less than 5 per cent headcount in the Gig model, this intensity will likely improve
- Contrarily, Services sector has wider spread as nearly 20 per cent of the firms have 30 per cent + Gig talent in the workforce
The report informs that IT Services is perceived as an established sector for the Gig workforce, and will continue to grow, although, across the majority of organizations in the sector, Gig headcount is less than 10 per cent. While software products companies have a higher concentration of Gig workforce, relative to overall headcount, with nearly 30 per cent having more than 40 per cent Gig hires in overall headcount.
Seeing the scope of the Gig economy, it is informed that 60 per cent tech organizations plan on increasing the amount of work given to Gig workers in the next 2-5 years. On the other hand, 36 per cent plan on maintaining current Gig workforce levels, while only 3 per cent indicate a reduction.
Considering BPM Firms, most of these firms decide to hire gig workers in well-structured and standardized job roles in admin and support, HR operations, and inbound/outbound sales.
Lastly, the study deduced professional roles that would change with intervention of Gig workers. Majority of HR roles will witness an increase in Gig workers, with the exception of Comp & Ben. Product Management or Category Management roles will witness a significant increase compared to other roles in product lifecycle management. While sales will witness the highest increase in gig workers over the next few years.
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