Startups Lead in Gig Worker Recruitment: Nasscom-Indeed

The gig economy is transforming the traditional job market and creating new opportunities for both employers and workers. According to a survey by Nasscom, Indeed and AON, 84% of organizations in India are exploring or open to gig models, with startups and the BPM sector leading in gig worker hiring.

What is the gig economy?

The gig economy refers to the practice of hiring independent contractors or freelancers for short-term or project-based work, rather than permanent employees. The gig economy offers benefits such as flexibility, diversity, agility and access to specialized skills for both employers and workers.

How are startups leading in gig worker hiring?

According to the survey, 96% of startups have explored gig economy or freelance opportunities to access specialized talent or fill specific project needs, followed by BPM (75%), and IT Services and Product organizations (over 60%). The primary drivers for Gen Zs and millennials opting for gig roles are flexible job locations and a focus on specialized skills. The survey said the organizations are capitalizing on gig workers in areas such as software development, data annotation, and business analytics, tapping into the benefits of on-demand talent and specialized expertise.

What are the challenges and opportunities of the gig economy?

The survey also highlighted some of the challenges and opportunities of the gig economy for both employers and workers. While smaller size organizations actively engage in the gig economy, more than one-third of large organizations are not open to gig models, citing data security concerns, client preferences, etc. Moreover, organizations are focusing on geographical expansion to explore new markets for talent, and strategic partnerships to gain competitive advantage and new market access. On the other hand, gig workers face issues such as lack of social security, income stability, career growth and recognition. The survey suggested that creating a conducive ecosystem for gig workers, such as providing training, mentoring, certification, feedback and rewards, can help address these challenges and enhance their employability and productivity.

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