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India's gig economy on rise; 70% firms used gig workers in 2018

Representative image | Reuters

With the advent of start-ups there is a rise in gig economy and in India 70 per cent corporates have used gig workers at least once for major organisational issues in 2018, according to a report.

The survey revealed that men and women both have an almost 50:50 split in the gig economy against the traditional workforce where the ratio is about 70:30, a report 'The Future of Work is Anywhere - Gig Workforce' by Noble House has revealed.

It said, 70 percent of respondents from the hiring side have used gig workers at least once or twice for solving organisational issues in 2018.

For this report data was gathered from over 800 human resource (HR) professionals and independent consultants was evaluated to understand perspectives around the gig economy.

Further, the report said, nearly 45 per cent of the human resource (HR) heads surveyed want to hire a gig worker so that they can supplement skills of the existing workforce, 39 per cent would do this to reduce the cost and 10 per cent for filling temporary vacancies in their teams.

Gig economy constitutes a large segment of workers, such as self-employed, freelancers, independent contributors and part-time workers and is yet very much fragmented.

This informal space started getting recognition across the globe and emerged as the gig economy where workers come, gig and leave.

"We found that a large segment (81 per cent) has joined the gig bandwagon in the last five years. The data from the consultants registered on the Noble House platform suggests that the organised segment is seeing more interest across the metro cities, with Delhi NCR at 43 per cent emerging as the biggest hub followed by Mumbai at 19 per cent and Bangalore at 18 per cent," Sanjay Lakhotia, Co-Founder, Noble House Consulting Pte said.

He said, the gig economy has allowed organisations to engage the best talent including skilled individuals in the mid-to-senior level positions, for specific value-add tasks in a cost-effective manner.

Meanwhile, the report found that 73 per cent independent consultants indicated they would prefer to continue working as independent consultants any day over a regular 9-5 job.

Only 21 per cent wished to go back to a full-time position.

On being asked how frequently they were hired as a freelancer, 70 per cent consultants claim to have been hired between 1 to 2 times in a year.

About 40 per cent of the people in the gig economy have more than 20 years of experience and another 38 per cent have between 11 and 20 years of experience, it added.

Businesses have trusted gig workers in the talent acquisition and training and development functions of the HR domain, the most, the report said.

These are also traditionally the easier to outsource activities, it added.

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