Contractual job hiring by firms up 15% CAGR since Jan 2022, says report

Businesses opting for flexible employment models to manage costs, it says

Contractual jobs in India have expanded at a compound annual growth rate of 15 per cent since January 2022, said a report on Wednesday.

Offshoring services companies had the largest share some (55 per cent) of contractual employees within the information technology (IT) staffing domain. Around 30 per cent of such employees were affiliated with global capability centres (GCCs) and 15 per cent worked with domestic conglomerates and startups, according to ‘Contractual Hiring Trends in India' report by talent solutions provider Careernet.

The report said the companies are opting for contractual hiring due to a lack of long-term visibility in business. The model saves costs by trimming down permanent roles within their global operational frameworks. The surge in contractual hiring demand is steered by GCCs.

 

Jobs in software development are set to constitute 50 per cent of the flexible labour market for technology professionals by the end of 2024, said the report. Roles in enterprise resource planning, analytics, testing, and system/network administration are expected to comprise the remaining 50 per cent.

Anshuman Das, chief executive officer and co-founder of Careernet, said contractual hiring is increasing due to market dynamics and the changing nature of employment.

"Companies are hiring talent with specialised skills for specific job roles to benefit from their expertise without the need for extensive training. The trend has been extremely beneficial to foreign companies and GCCs operating in the country, as contractual hiring gives them access to a huge pool of diverse talent while maintaining a lean workforce," he said.