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Gig Workforce – The Tech Sector Story
Gig Workforce – The Tech Sector Story

February 7, 2023

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Over the last year we have the immense amount of talent challenges that the technology industry has witnessed which was clearly reflected in the rising attrition of technology companies till the last quarter, which seems to stabilize this quarter.

One of the key reasons for this challenge is the increasing demand for digital skills which remain in short supply across the industry. Moreover, with digital transformation becoming a key requirement across all industries, the demand for digital talent is no longer limited to the technology industry.

This limited supply of key skills coupled with the volatility in demand for talent specifically after the pandemic has resulted in the rise of a Gig workforce across the sector.

What is GIG?

Before we talk about the state of the gig workforce in the Indian tech sector, let us first understand what is gig. In simple terms, gig includes a number of roles such as Freelancers, Independent Consultants, Project Based Workers, and Temporary and Part-time Hires.

Below is a snapshot of how the tech companies define it based on a NASSCOM – Aon Gig Talent in India Study 2022

Source: NASSCOM’s Future of Workforce: Decoding the Gig Workforce 2.0

The Global Gig Economy

The size of the global gig economy is projected to grow at 14% CAGR and is expected generate a gross volume of ~$455 bn by 2023. Notably, Developing countries such as India, Philippines, Pakistan and Ukraine  are witnessing a surge in demand for Gig Workers. The outbreak of covid 19 has given a push to demand for Gig giving a push to number of enablers for gig including talent demand volatility, flexible work models and rising digitization.

Source: NASSCOM’s Future of Workforce: Decoding the Gig Workforce 2.0

Gig Workforce a Key Lever in India Tech Growth Story

As of 2021, India had the lowest-tech talent demand gap in the world at 21.1%. This gap is the lowest among top tech locations such as the USA, China, and the UK.

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Source: NASSCOM’s Future of Workforce: Decoding the Gig Workforce 2.0

India is fast closing this gap through fresher hiring, increased hiring in Tier 2/3 cities and increased sub-contracting and Gig workforce.

More about the gig landscape and what are the most giggable skills in my next blog.

Happy Reading!

For more insights read our report “FUTURE OF WORKFORCE: DECODING THE GIG WORKFORCE 2.0

 


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Neha Jain
Senior Analyst

Neha Jain

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