Why startups are hiring freelancers or gig workers

Jan 25, 2024 Abhishek Yadav

84% of organizations are exploring or open to gig models, with startups and the Business Process Management sector leading in gig worker hiring.

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96% of startups have explored gig economy or freelance opportunities to access specialized talent or fill specific project needs.

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The primary drivers for Gen Zs and millennials opting for gig roles are flexible job locations and a focus on specialized skills.

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The organisations are capitalizing on gig workers in areas such as software development, data annotation, and business analytics, tapping into the benefits of on-demand talent and specialized expertise.

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The smaller size organizations actively engage in the gig economy while more than one-third of large organizations are not open to gig models, citing data security concerns, client preferences, etc.

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Sangeeta Gupta, Senior Vice President and Chief Strategy Officer, at Nasscom, said, “The tech industry in India is experiencing a significant transformation, reflecting the evolving dynamics of the contemporary workspace.”

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The organizations are focusing on geographical expansion to explore new markets for talent, and strategic partnerships to gain a competitive edge and new market access.

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The expansion across Tier II/III cities in India is also gaining prominence as service-based organizations as well as GCCs are looking to harness the untapped innovation potential.

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Talent availability and cost savings are primary drivers for smaller organizations with revenue less than Rs 25 crore.

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For larger tech firms with revenues exceeding Rs 250 crore, key drivers include talent availability and cost savings, leveraging diverse skill sets and tapping into the untapped talent pool in these technology hubs.

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