India’s IT Staffing Market Set to Expand at 7% CAGR Through FY26

India’s IT temporary staffing market is on a growth trajectory, projected to grow at a compound annual growth rate (CAGR) of 7% from FY24 to FY26. This growth highlights India’s emergence as a critical player in the global digital economy, driven by its talent availability and business-friendly environment.

Flexi Staffing: A Vital Force in India's IT Industry

Flexi staffing, a term used to describe the provision of temporary or contract IT professionals to organizations, has become a cornerstone for businesses aiming to meet dynamic market demands. The sector is thriving in India, which holds the position of the second-largest player in the South Asia-Pacific IT staffing market.

“India’s continued growth as a hub for flexible staffing is essential to meeting the competitive demands of the digital economy,” said Lohit Bhatia, President of Indian Staffing Federation. Regional expansions and increasing adoption of flexi staffing models cement India’s leadership in this space.

Key Drivers of IT Flexi Staffing Adoption

The report identifies several factors fueling the rise of IT flexi staffing in India, including:

• Ease of Doing Business: Favorable regulations and streamlined processes attract organizations to adopt flexible staffing models.
• Talent Availability: A highly skilled IT workforce remains a significant advantage.

Approximately 38% of organizations cited these factors as pivotal in their staffing decisions, underscoring India’s robust infrastructure for temporary staffing solutions.

Sectoral Trends: IT/ITeS and BFSI Lead the Charge

The IT and IT-enabled Services (ITeS) sectors, alongside Global Capability Centers (GCCs), dominate the flexi staffing market, accounting for 51% of the market size and employing nearly 296,000 flexi professionals.

The BFSI and fintech sectors also showcase strong adoption, with 17.1% flexi staffing penetration, followed by logistics, energy, and utilities at 14.6%. The demand from GCCs has grown steadily, driven by their operational diversity and the establishment of new centers across India.

Regional Growth: Emerging Cities Join Established Hubs

While major tech hubs like Bengaluru, Hyderabad, Chennai, Mumbai, Kolkata, and Delhi NCR continue to lead in IT flexi staffing demand, emerging cities such as Ahmedabad, Coimbatore, Visakhapatnam, Surat, Kochi, and Nagpur are becoming critical growth centers. These cities are fostering demand for flexible IT talent, broadening India’s geographic reach in the sector.

Conclusion

India’s IT flexi staffing market is not just a reflection of its growing digital capabilities but also a testament to its evolving workforce strategies. With an expanding presence in both established and emerging markets, coupled with sectoral diversification, India is well-positioned to lead the way in the South Asia-Pacific IT staffing market. As businesses continue to prioritize agility and scalability, flexi staffing will remain a critical component of their workforce strategies.

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