Flexi hiring in IT poised for double digit growth in next 4 years: study
New Delhi: The slowdown in tenured jobs notwithstanding, flexi staffing in information technology (IT) is poised to grow in double digits in the next four years, Indian Staffing Federation (ISF), a grouping of top staffing companies in India, said in a report Tuesday.
This growth will be driven by sectors like information technology, banking and retail.
Flexi hiring refers to temporary jobs.
The IT flexi staffing market in India, worth $3.04 billion in 2016-17, is expected to grow 14-16% annually to become a $5.3 billion industry by 2021, the ISF report said.
Companies like TeamLease Services, Manpower, Kelly Services, People Strong and Adecco India are part of ISF.
According to the report, new technologies including artificial intelligence, machine learning, cloud, analytics, Internet of Things etc., will generate demand for a niche skill set, encouraging hiring of IT flexi staff.
“IT is no more one sector. It is the base for almost all sectors whether it is banking, retail or insurance. With the kind of digital push the country is making, the need for IT staff across sectors will grow and here we found that flexi staffing will see a big growth,” said Rituparna Chakraborty, president of ISF and also the senior vice-president of TeamLease Services.
Poor jobs growth has been a constant refrain of India’s economic narrative.
The top six India-based IT companies, referred to by the acronym TWITCH by some analysts, have reported a net decline of 10,505 employees in the first two quarters of FY18. During the same period last year, they had reported net hiring of 58,765, Mint reported on 3 November. TWITCH comprises Tata Consultancy Services Ltd, Wipro Ltd, Infosys Ltd, Tech Mahindra Ltd, Cognizant Technology Solutions Corp. and HCL Technologies Ltd.
“The slowdown of jobs indicate that while tenured jobs are not getting created as much as required. Companies are looking to hire more flexi staff to fulfil project specific requirements,” Chakraborty added.
As per the report, which surveyed 120 companies, flexi staffing will grow fastest in the e-commerce and start-up sector (17.3%) followed by IT/ITeS (15.8%), and healthcare (14.1%).
It said wide adoption of cloud computing, use of mobile phones for work or mobility service and the growing concern around cyber security will drive flexi staffing. At least 73% of the companies surveyed said that cyber security and cloud computing will drive flexible hiring, and 45% said mobility was a key driver.
- Global gold prices inch up on weaker dollar, inflation outlook
- Sembcorp Industries says to reorganize India energy business
- Paytm board appoints Pallavi Shroff as independent director
- SGX to list Nifty successor products before August
- Market Live: Sensex falls 100 points, Nifty below 10450, PSU bank stocks trade lower