Contractual jobs have been growing at a 15 percent compound annual growth rate (CAGR) since January 2022, according to the ‘Contractual Hiring Trends in India’ report by talent solutions provider Careernet.
The study found that offshoring services companies continue to employ the largest share of around 55 percent of all contractual employees in the information technology (IT) staffing vertical. Of this, about 30 percent are with global capability centres (GCCs) and the remaining 15 percent with domestic conglomerates and start-ups.
The report suggests that in a volatile business landscape, a lack of long-term visibility has led to increased contractual hiring. With this model, companies optimise costs by reducing permanent roles in their global operational setups. With more GCCs driving demand, the acceptance of contractual jobs is on the rise.
Job roles in the software development discipline -- in areas such as backend, full stack/Java, .NET, and frontend -- will make up 50 percent of the flexible labour market for technology professionals by the end of 2024.
Further, roles such as Enterprise Resource Planning (ERP), Analytics, Testing and System/NW Administration will make up the remaining 50 percent.
"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 specialised 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,” said Anshuman Das, CEO and Co-founder of Careernet.
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