Contractual jobs have been growing at a strong 15 per cent CAGR since 2022, and an even bigger leap of 20–25 per cent is expected in 2024 compared to the preceding year, according to a report by Careernet. 

The report titled ‘Contractual Hiring Trends in India,’ noted that offshoring services companies continue to employ the largest share (around 55 per cent of all contractual employees in IT staffing vertical) about 30 per cent with GCC and remaining 15 per cent with domestic conglomerates and start-ups.

Careernet unveiled that role in the software development discipline, in areas such as backend, full stack/Java, .NET, frontend will make up for the 50 per cent of the flexible labour market for technology professionals. The remaining 50 per cent will be other roles such as ERP, Analytics, Testing and System/NW Administration by the end of 2024. Automation testing, NET and Java are the frontrunners as far as the demand is concerned.

Shifting dynamics

Anshuman Das, CEO and Co-founder of Careernet, said, “The upward trend in contractual hiring can be attributed to the shifting market dynamics and the changing nature of jobs. Companies are hiring talent with specialized 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.”

A volatile business landscape and a lack of long-term visibility have led to increased contractual hiring. With this model, companies optimise costs by reducing permanent roles in their global operational set-ups. With more GCCs driving demand, the acceptance of contractual jobs is on the rise. Flexi hires can immediately bolster projects by accelerating the hiring process and plugging skill gaps, the report said.