In a rapidly evolving employment landscape, the IT industry is witnessing a significant shift in hiring trends. While the pace of permanent job placements is slowing down, the number of gig workers has surged by 40% in 2023 compared to the previous year, according to a research study conducted by CIEL HR Services, as reported by The Economic Times.
This research, based on data from over 100 IT services providers, reveals that six out of 10 companies are now actively hiring gig workers, marking a substantial increase from just two out of 10 companies last year. On the contrary, the growth of permanent positions in the industry has remained below 5% during the same period.
So, what is driving this surge in gig work within IT companies? The answer lies in the increased flexibility and adaptability it offers to organizations in an uncertain environment. By engaging gig workers, companies can hire professionals on a project-specific basis, tailoring their workforce to meet immediate needs. In fact, many IT firms are now adopting a blended workforce strategy, combining permanent and contractual employees with gig workers.
Leading IT giants such as Tata Consultancy Services, Infosys, and Tech Mahindra have been quick to recognize the potential of the gig work economy. They have either launched their own gig hiring platforms or enabled employees to take on external gig work with managerial approval. For instance, LTIMindtree has introduced GigSpace, a dedicated platform for gig workers, while Tech Mahindra utilizes Talex, an AI-powered talent marketplace, to identify gig workers internally. Additionally, they run external marketplaces like BeGig to connect with a broader talent pool.
Manoj Shikarkhane, Chief Human Resources Officer at LTIMindtree, highlights the advantages of leveraging gig work platforms within enterprises. He emphasizes that these platforms enable companies to tap into a vast talent pool, provide the right opportunities for individuals, and enhance their skills effectively.
The rise of gig work in the IT sector signifies a significant shift in employment dynamics, driven by several key factors:
- Flexibility: Gig work allows companies to scale their workforce based on project requirements and adapt swiftly to changing market conditions without making long-term commitments.
- Specialized Expertise: Gig workers bring specialized skills and expertise to the table, enabling companies to access a diverse talent pool and effectively address short-term projects or niche areas that require specific knowledge.
- Blended Workforce Strategies: By blending permanent employees with gig workers, companies optimize their resources, foster agility, and introduce fresh ideas and external insights to their projects.
Major IT players like Tata Consultancy Services, Infosys, and Tech Mahindra have embraced gig work as a means to tap into a broader talent ecosystem. This approach not only expands the available skill set but also provides additional earning potential and professional growth opportunities for gig workers.
However, it is essential to acknowledge that gig work also presents challenges, including job security, benefits, and consistent income streams. To maintain a sustainable and ethical approach to employment, companies must ensure fair treatment, transparent policies, and adequate support for gig workers.
As the IT industry continues to evolve, the rise of gig work offers both opportunities and challenges. By effectively managing and integrating gig workers into their workforce strategies, IT companies can harness the benefits of a flexible and dynamic talent ecosystem, paving the way for future growth and innovation.
The changing landscape of the IT industry necessitates a paradigm shift in employment models, with gig work emerging as a significant force. It is an exciting time for IT professionals as they navigate this evolving landscape, embracing the advantages of gig work while advocating for fair treatment and a supportive environment that fosters growth and development.