Trend about temporary staffing and contractual jobs

Trend about temporary staffing and contractual jobs

India has an estimated 90 million temp workforce, currently, of which about 500,000 are engaged by the organized sector (about 0.55%).The contract duration of a typical temp job in India varies between 2 months to 18 months ├óÔé¼ÔÇ£ this is very close to the global mean duration of 3 months to 24 months. Experts predict that by 2025, 10 percent of the overall workforce would be working as contingent workers through various staffing companies. Companies in growing industries, such as e-commerce, retail, and healthcare, are increasingly looking to bolster their workforces with temporary staff for a variety of projects.

Companies across traditional sectors such as Retail, Telecom, Hospitality, Pharma, Manufacturing, and Agriculture are increasingly shifting to the flexi staffing model. The size of India’s Retail sector, one of the major sources of demand for flexi staff in India, is currently estimated at around US$ 450 billion and is expected to grow at 10-12% per annum. Pharma & Healthcare, Manufacturing, Hospitality, Engineering and Auto, and BFSI have 30 percent of temp workforce and other sectors had 0-10% of their total workforce.

Amazon, Flipkart, LG, Samsung, Panasonic, Mondolez, Grofers, Urban Ladder and Pepperfry are among companies aggressively looking to grab people. Accenture, Microsoft and Cisco spend over $80 million each on maintaining a vast pool of contract workforce, while Cognizant, Oracle and HCL Technologies shell out over $50 million each to augment their IT staff with contract resources that work as an extended IT team.

Assuming most of the contract staff is junior staff with an annual salary of about Rs 4 lakh, IBM will have over 22,000 people in this category. Sales, logistics and customer support are the main areas where temp workers will be hired and overall demand is expected to jump by 30-50% in the period till end-December2015. According to various estimates, between 60,000-80,000 temporary jobs would be created in the organized sector alone this festive season, while the unorganized sector would hire more. With 4G rollout on the cards, telecom companies too are looking to hire temps for sales or last-mile installation’s recent study found that, a top smartphone maker plans to almost double its temp intake in sales for its new model launches. The average salary bracket for contractual staff ranges from Rs 9,000 to Rs 20,000 per month.

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