As per the recent study ‘Future of Work – Unravelling the Intricacies of New-Gen Work’ organisations are focusing on geographical expansion to explore new markets for talent and strategic partnerships to gain competitive advantage and new market access. This focus on new market access is in-turn driven by the need for diversification and tapping into untapped consumer bases.
The report further highlighted that the expansion across Tier-2 Tier-3 cities in India is also gaining prominence as service-based organisations as well as GCCs are looking to harness the innovation potential found in diverse talent pools concentrated in these emerging technology hubs. While talent availability and cost savings are primary drivers for smaller organisations with revenue less than Rs 25 crore, for larger tech firms (Revenue > Rs 250 crore) the key drivers are the availability of diverse skill sets and untapped talent in these technology hubs.
The study is carried out by the Nasscom India in collaboration with Indeed. The report examines the transformative landscape across three pivotal pillars: the future of jobs, workforce dynamics and the evolving workspace, based on a comprehensive survey encompassing employers, current employees and future workforce.
The future of jobs
As the dynamics of job roles continue to evolve, the majority of organisations are adopting a hybrid and flexible work approach, with office attendance guided by organisational needs and job profiles. To also encourage employees to return to office, companies are customising strategies based on their size, workforce distribution, sector constraints, and specific job requirements. These strategies include fostering a culture of engagement through in-person events, promoting open interactions with senior leaders, and celebrating team milestones and individual achievements to enhance employee morale and motivation.
Further, organisations are increasingly embracing new technologies, leading to a growing demand for specialist roles such as AI/ML Scientist, Quantum Computing Researcher, Quantum AI Developer, and Blockchain Specialist. Despite the complexity of these roles limiting their current adoption, employers are addressing this challenge by either upskilling their existing workforce or hiring subject matter experts through flexible working models like Gig and contractual employment. Among the most sought-after job families, roles in Data & Analytics are in the lead, closely followed by positions that enhance customer experiences, automation, and efficiencies, particularly in AI and Machine Learning domains.
The Future of workforce and workspace
The Technology industry in India continues to be the industry of choice for Gen Z students with 77% of Gen Z students showing interest towards the industry. Millennials and Gen Zs today constitute around 90% of the tech workforce in India enabling higher generational diversity and driving a shift in preferences. Learning & Growth and Culture & Ethics are the top criteria for both millennials and GenZ when selecting an organisation, highlighting the employers’ continued focus on skilling and upskilling to navigate the current work environment and develop their desired career paths. For the future workforce, criteria for selecting an organisation remains similar, whereas career progression, compensation & benefits and learning opportunities are the primary factors that drive them to continue with an organisation.
The Gig Economy has profoundly transformed traditional job roles and organisational structures, leading to more diverse skills, increased resource allocation agility, dynamic team configurations, and updated role definitions. According to a survey by Nasscom and Indeed, encompassing 185 employers and over 2,500 individuals from current and future workforces, 84% of organisations are exploring or open to gig models, with startups and the Business Process Management (BPM) sector leading in gig worker hiring. The primary drivers for Gen Zs and Millennials opting for gig roles are flexible job locations and a focus on specialised skills. Organisations are capitalising on gig workers in areas such as software development, data annotation, and business analytics, tapping into the benefits of on demand talent and specialised expertise.
“The tech industry in India is experiencing a significant transformation, reflecting the evolving dynamics of the contemporary workspace. Over the past five years, there has been a noticeable shift from traditional office settings to an exploration of remote work, followed by a recent trend of returning to office spaces. The future of work will be defined by the dynamic balance between efficiency improvements from automation and the expansive potential of creativity unleashed by continuous innovation. Organisations are dedicating substantial efforts to understand their workforce needs and investing in various programs to create an attractive proposition for returning to work,” Sangeeta Gupta, senior vice president and chief strategy officer, Nasscom, said.