News: Indian flexi-staffing to grow at 22.7% CAGR across next 3 years

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Indian flexi-staffing to grow at 22.7% CAGR across next 3 years

The report throws light on most effective reforms & initiatives and their subsequent effect across sectors in job formalization. It also identifies emergent challenges in the transition from informal to formal employment.
Indian flexi-staffing to grow at 22.7% CAGR across next 3 years

Indian Staffing Federation (ISF), the apex body of India’s flexi staffing industry, unveiled India’s independent report on ‘Impact of Key Reforms on Job Formalization and Flexi Staffing’.

The report, prepared by IMRB Kantar for ISF, is based on interviews with Heads of HR in 15 verticals -IT/ITeS, Telecom, BFSI, Retail, E-Commerce, FMCG & FMCD, Automotive, Manufacturing (Machinery), Manufacturing (Non-Machinery), Pharma and Healthcare, Infrastructure & Construction, Logistics Transport, Education/Training/Consultancy, Government/Ministry plus Media & Entertainment.

The sample encompassed large, medium and small enterprises in each vertical to get a holistic view of the flexi staffing industry. The workforce for industries was arrived at based on reputed sources like Economic Census, India Brand Equity Foundation, Ministry of Commerce & Industry, Ministry of Skill Development and Entrepreneurship, National Statistical Office and KANTAR ICUBE Data.  

The report throws light on most effective reforms & initiatives and their subsequent effect across sectors in job formalization. It also identifies emergent challenges in the transition from informal to formal employment.

Key findings of the report : 

• At 3.3 million flexi staff in 2018, India emerges as the 5th largest worldwide for in flexi-staffing

• The space grew at a CAGR of 16.3% in 2018 which will further accelerate to 22.7% from 2018-2021

• 1.2 million added to flexi-workforce since 2015; further 1.53 million to be added over the next 3 years 

• GST & demonetization were two key reforms to drive Job formalizations in 2016-18.

• Reforms/policies to formalize around 11.03 million jobs between 2018-21

• Current and imminent policies and reforms to catalyse the push from informal to the formal sector; over 7 million jobs formalized between 2015-18; 19.9 million workforce growth (formal sector) in 2015-18, includes shift from informal to formal

• India to have 6.1 million flexi workforce by 2021; IT/ITeS leads adoption with 12.5% penetration

• Flexi-staffing has the potential to be among the key job creation engines

• Sustenance of reforms and policy changes is key to the momentum being maintained

• Logistics, BFSI, IT/ITeS, retail and government - top 5 sectors employing over 55% of total flexi workforce by 2021

Unveiling the report, Rituparna Chakraborty, President, ISF, said, “With one million youth added to the workforce every month, India’s position and performance in the labor area is of both significance and immense interest to the world. 2015-2018 have also seen some of the most significant reforms and policy shifts in the space that seen an accelerated transition from informal to formal employment in the same period. However, this crucial area was suffering from lack of data and validated perspectives and as the industry’s apex body, we took it upon ourselves to fix this gap. 

According to R P Yadav, Vice President, ISF, “The report establishes flexi-staffing as a key job creation engine. The acceleration in momentum towards formal employment witnessed in the past 3 years clearly means the reforms are impacting and in the direction to create further job formalization if the momentum is sustained or improved. The higher CAGR for flexi-staffing in 2018-21 also spells good tidings for space which truly is well on its way to emerge among the top 3-4 markets for flexi-staffing worldwide in a couple of years.”

Topics: #FutureofJobs, Outsourcing

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