‘India’s Continued Growth As A Hub For Flexible Staffing Is Essential To Meet Competitive Demand Of Digital Economy’
The Indian Staffing Federation (ISF) has released the Indian IT Staffing – Sectoral & State Employment Trends Report 2024, underscoring significant trends and projections within India’s IT flexi staffing industry. The report provides an in-depth analysis of trends in IT staffing across various sectors and states, highlighting key advancements and developments specific to states, sectors, women workforce participation rate and evolving skill requirements.
The IT flexi staffing industry focuses on supplying temporary or contract IT professionals to client organizations. The report indicates that 38% of organizations regard the ease of doing business and the availability of talent as critical factors for success. Additionally, it asserts that India is the second-largest player in the South Asia-Pacific (APAC) region within the rapidly expanding APAC IT staffing market.
Lohit Bhatia, President of ISF, says, “The report is released at an apt time when the IT industry has started showing signs of revival since last quarter. India’s IT flexi-staffing sector is anticipated to experience steady growth, with a projected compound annual growth rate (CAGR) of 7% from FY2024 to FY2026. India’s continued growth as a hub for flexible staffing is essential to meeting the competitive demands of the digital economy. The regional expansion and growing penetration of flexi staffing models underscore India’s role as a leader in the South Asia Pacific staffing market.”
Vice President of ISF, Manmeet Singh, highlights “The report has interesting findings from the employment contributions coming from IT and IT-enabled Services (ITeS) sectors, along with Global Capability Centres (GCCs). Together, they account for 51% of its overall value and employ a significant flexi workforce of 296,000 professionals.”
Reflecting on the women workforce participation in enabling geographies, Suchita Dutta, Executive Director of ISF, says, “States with a strong IT infrastructure and inclusive policies see higher female participation in the workforce. Conversely, male dominance persists in states with traditionally male-dominated sectors such as manufacturing and engineering. The IT female labour workforce participation rate is averaging at 37%”.
The report further reveals significant regional and industry-specific trends with a focus on regional gender balance in flexi-staffing. Delhi NCR is leading in promoting gender balance, with a workforce distribution of 55% male and 45% female in flexi-staffing roles. Karnataka follows closely, with a female labour force participation rate of 37%, in line with India’s national average. Other states like Maharashtra (33% female representation), Telangana (39%), and Tamil Nadu (23%) show lower female participation, underscoring regional disparities in gender inclusivity within flexi-staffing.
The next is sectoral demand for flexi-staffing indicating that Global Capability Centres (GCCs) have an 8.2% penetration rate, largely due to the rapid growth of new centres in India and a high demand for flexible staffing to meet diverse operational requirements. The BFSI and fintech sectors show the highest flexi-staffing penetration at 17.1%, followed by logistics, energy, and utilities at 14.6%, indicating a shift towards temporary or project-based roles.
Finally, there is a city-wise demand for IT flexi-talent, especially among emerging cities like Ahmedabad, Coimbatore, Vishakhapatnam, Surat, Kochi and Nagpur. which are seeing a growing demand for flexible IT talent. Meanwhile, established tech hubs like Bengaluru, Hyderabad, Chennai, Mumbai, Kolkata and Delhi NCR remain at the forefront of IT flexi-staffing demand, reflecting their established status in the industry.
These trends suggest an evolving landscape where gender inclusivity and flexible staffing models are being adopted variably across regions and sectors, catering to both established and emerging tech hubs in India.
