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India's IT Freelancers Thrive in the Gig Economy: Prospects for Growth and Change.

India's IT freelancers thrive in the gig economy: prospects for growth and change.

The gig economy is changing how we work, and it's not just affecting how we live. It's also impacting our economy in a big way. If you want to stay ahead of the curve and be one of the top IT freelancers in India, you need to know about it. 

This post will hopefully shed light on the subject. It covers everything you need to know about the Indian IT industry and freelancing market - from how IT talents are making a career shift, exploring their potential, and how far they've come.

Insights on India's Emerging Gig Economy

As a result of the growth of the gig economy, people's perceptions about their chosen careers and how they go about their work are evolving. It is especially true in information technology (IT), information technology-enabled services (ITES), e-commerce, retail, manufacturing, logistics, transportation, and construction.

An estimated 15 million Indians work independently as independent contractors, gig workers, or freelancers, greatly contributing to the country's booming startup scene. Freelancers in India contribute to expanding their country's startup sector, and as business conditions and demands change, these individuals become more valuable to the most prestigious companies.

The gig economy of India is swiftly rising as a major contributor to the global economy, with over a million independent contractors adding $400 billion to the national GDP.

The Indian IT sector: data and statistics

India is becoming a major player in the digital talent market, with more than 50 lakh people employed in the sector. The IT industry is expected to play a pivotal role in propelling India's skilled gig economy forward.

According to "Statista," the information technology services sector of the Indian market for information technology had the largest market size in terms of revenue in the fiscal year 2021, coming in at 99 billion US dollars. This sector of the industry was the most lucrative. 

The size of the Indian e-commerce market is included in the overall size of the information technology market, resulting in a total market size of 235 billion dollars. The computer and electronic hardware manufacturing sectors are not included in this. 

Furthermore, the "Indian Brand Equity Foundation" reports that the information technology industry generated 8% of India's GDP in 2020. This number is expected to rise to 10% by 2025. In addition, India's ranking in the Global Innovation Index 2021 improved by four spots, moving it up to position 46(GII).

The sales of the Indian information technology industry reached US$ 227 billion in FY22, as reported by the National Association of Software and Service Companies (Nasscom). This figure represents a 15.5% growth over the sales from the previous year.

In addition, Gartner forecasts that spending on information technology in India will increase to $ 101.8 billion in 2022, up from the forecasted total of $81.8 billion for 2021.

Recently, the IT industry hired 4.45 lakh, new workers, in FY22, bringing the total number of people employed in the sector to 50 lakh.

India's IT industry and the growing demand for freelance tech talents

4.5 million people are working in the information technology sector in India. Because of the historic COVID-19 pandemic, the IT industry is expected to experience rapid growth over the next few years. Due to this, India has witnessed massive progress in digitalization and automation at a breakneck pace.

"Korn Ferry" claims this growth pattern is driving an exponential increase in the need for tech talent, and IBM's CEO, Arvind Krishna, predicts the shortage will persist for at least the next decade.

According to Korn Ferry's "2022 Talent Acquisition Trends analysis," a lack of talent has shifted from a short-term to a long-term concern.

To overcome the demand-supply imbalance, firms are implementing a range of remedies, such as retraining their personnel and standardizing their work. Companies have increased pay and added perks to lure and keep the best employees.

The findings of a study by the research company Gartner indicate that the attrition rate in the information technology industry has increased from 10% in 2020 to 20% in 2021, with certain IT organizations reaching as high as 30%. 

Unfortunately, the efficiency of these strategies has only been shown to a limited degree at this point. 

The reasons why IT professionals must join the gig economy. 

As evidenced, the gig economy has caused a paradigm change among many employers, business owners, and entrepreneurs. During the COVID epidemic, many companies looked for remote workers or shifted their traditional work culture to a WFH model. 

As a result, there was an increased demand for part-time workers, flexible employment, discretionary talent, freelancers, contractual workers, and a remote workforce.

  • In addition, the gig economy has many advantages that make it a good fit for an IT professional. The most obvious reason is that it can assist you with better financial management.
  • The gig economy is rapidly expanding, and IT experts with the requisite abilities may charge big bucks for their services.
  • Aside from the opportunity to earn more money, the gig economy allows people greater freedom and control over their work schedules, allowing them to strike a decent work-life balance.
  • You have the opportunity to work on a range of projects, which can be a wonderful way to develop new skills and experience, keep current, and network with other experts.

With the increasing need for talent, transitioning to the gig economy can be a lucrative alternative for IT professionals seeking flexibility, new possibilities, and the opportunity to build something of their own.

Concerns: will the IT industry survive? 

The IT industry is currently facing many challenges that threaten its survival, besides the massive growth and rising demand for technology and tech talents.

Firstly, there is a skills shortage, with insufficient people trained in the latest technologies. It leads to a skills gap that is becoming increasingly difficult to fill.

Secondly, there is a growing trend of automation, which is reducing the need for human labor in the industry. It is particularly true in the software development sector, where automated tools and processes are increasingly being used. 

Finally, there is a general feeling of unease about the industry's future, with many people believing that it is not sustainable in its current form.

It is a widespread fear that India is squandering its vast resource of IT talent by outsourcing jobs abroad to large multinational corporations rather than using that talent in-house to create ground-breaking new technologies. What would happen to the outsourced workers' talents if the world economy were to shrink?

These challenges are significant, and it is uncertain whether the IT industry will be able to overcome them. If it cannot, then the industry may decline in the years to come.

Summary:

The Indian IT industry is in flux. Established players have difficulty adapting to a new era of digital services and software goods. At the same time, the formation of prospective new firms is hampered by a lack of quality infrastructure and talent.

It is here that the gig economy enters the picture. Startups may engage top-tier talent on a project-by-project basis without worrying about recruiting and retaining a pricey full-time staff.

Furthermore, tech experts who switch from full-time to freelancing earn twice as much when working with various companies in the same amount of time they previously committed to a single company.

A few questions for you!

Do you have any thoughts on the problems still plaguing the IT sector?

And do you think the IT industry will be able to overcome them?

Is the gig economy good for India?

What kind of shifts can we expect from the gig economy?

Let us know your thoughts in the comment section below!

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