According to a recent report by the Indian Staffing Federation (ISF), India’s IT flexi staffing market is projected to grow at a compound annual growth rate (CAGR) of 7% from FY24 to FY26.
The report highlights the significant role of IT flexi staffing in meeting the dynamic needs of the digital economy, providing temporary or contract IT professionals to client organizations.
Market Overview: Regional Expansion and Gender Balance
The Indian IT flexi staffing market, valued at $4.9 billion in FY24, employs a workforce of 597,000 professionals.
The industry focuses on supplying temporary or contract IT professionals to client organizations, offering flexibility and scalability to businesses.
The report also notes that IT/ITeS and Global Capability Centres (GCCs) collectively hold half of the market share, employing 49% of the total IT flexi staffing workforce.
The report identifies emerging cities such as Ahmedabad, Coimbatore, Visakhapatnam, Surat, Kochi, and Nagpur. These cities are emerging as key hubs for IT flexi staffing.
These cities are becoming increasingly important in the regional expansion of the industry, contributing to the overall growth of the market.
Additionally, the penetration of flexible staffing models in non-IT sectors, including banking, insurance, and retail, is also on the rise.
States with strong IT infrastructure and inclusive policies see higher female participation in the workforce.
The report highlights that the IT female labor workforce participation rate averages at 37%.
Delhi-NCR leads in promoting gender balance with a workforce distribution of 55% male and 45% female in flexi-staffing roles.
Conversely, male dominance persists in states with traditionally male-dominated sectors such as manufacturing and engineering.
IT Flexi Staffing: Industry Trends and Challenges
The report points out regional and industry-specific trends, emphasizing the importance of gender balance in staffing.
It also addresses the challenges faced by the industry, including geopolitical conflicts in Europe and the Middle East.
Despite these challenges, the IT flexi staffing market in India continues to show resilience and steady growth.
India’s IT flexi staffing market is poised for steady growth.
This growth is driven by the increasing demand for flexible hiring solutions and the expansion of IT infrastructure.
The report underscores the importance of inclusive policies and gender balance in fostering a competitive and sustainable workforce.
With a projected CAGR of 7% from FY24 to FY26, the industry is set to play a crucial role in supporting the digital economy and meeting the evolving needs of businesses.
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