6 out of 10 IT firms hiring more gig workers as industry sees slowdown

The tech industry is seeing a sudden increase in the number of gig workers. This has resulted in slowing down the pace of hiring for permanent roles across IT firms.

The CIEL HR Services, a recruitment services agency, reported that permanent jobs have seen a reduction by five per cent this year as compared to last year, while the number of gig workers has increased by 40 per cent, according to a report in The Economic Times (ET).

This year, six out of every 10 companies are hiring gig workers, compared with just two out of every 10 companies last year, according to CIEL HR research of over 100 IT companies.

Gig workers offer better flexibility than permanent employees as they can be hired on an as-needed basis.

CIEL HR Chief Executive Aditya Mishra said that the slowdown in the IT sector has accelerated the adoption of the gig workforce.

These days, Indian IT players are adopting a blended workforce strategy: blending permanent and contractual workforce with gig workers.

A government official said that with the expansion of the gig workforce, the government is planning to release schemes to safeguard their interests. Several policies are in the works to cover this workforce, including on minimum wages, working hours, social security contributions, grievance redressal mechanisms and dispute resolution, according to the ET report.

Atul Kumar Tiwari, secretary at the Ministry of Skills Development and Entrepreneurship, said that gig workers have played an important role in ensuring delivery of goods and services across the country.

He said that the government is conducting research to understand the gig economy and its impact on workers.

IT services companies such as Tata Consultancy Services, Infosys, and Tech Mahindra either already have a gig hiring platform in place or are allowing employees to take up external gig jobs.

Manoj Shikarkhane, chief human resources officer, LTIMindtree, which has launched a platform called ‘GigSpace’, said that in recent times, a healthy balance between full-time employees and gig workers enables organisations to thrive in good stead and helps in operational efficiency.

Top tech companies are now using artificial intelligence (AI) to monitor gig workers. Tech Mahindra uses an AI-based talent marketplace, called Talex, to identify gig workers internally.

A R Ramesh, director of Adecco India, said that the IT market has dipped by 70 per cent.

He stated that this dip is mostly due to an increase in contract and gig employment.

The per-day pay for a gig worker in the IT domain has increased from Rs 6,500 in 2020 to Rs 8,000 in 2022, according to Flexing It, a gig work platform.