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Why contract staffing is increasing in India
  • Reading time:7 mins read
  • Post category:Contract Staffing
  • Post published:October 16, 2023

Indian business ecosystem is filled with contract staffing. Today, every company, from corporate to start-ups, opts for contract staffing solutions. But why contract staffing is increasing in India?

With a rapidly changing economy in recent years: labor investment has become a pressing challenge. Companies face immense pressure to fulfill the need for skilled talents; in a short span. After all, to stay ahead in the evolving market, they must meet the work demands beforehand.

That’s where the notion of contract staffing services started gaining prevalence. Multinational and domestic corporates and even start-ups resorted to the concept and are outsourcing staffing companies to hire the best candidates for their vacant position.

Today contract staffing in India is a fundamental partner to corporates and organizations in meeting their recruitment demands.

What is Contract Staffing?

Contract Staffing is a provisional employment process that fulfills the immediate need of the project or the vacant position. Skilled employees are initially hired and paid for a certain period or a specific purpose. Contract hiring accomplishes the organization’s urgent project requirements or immediate needs for a position. Furthermore, it offers more flexibility. If things work out, organizations can offer permanent positions to worthy performers.

The services where contract staffing has the most demand include executives in retail, sales, marketing and finance, logistics, legal aids, administration, tech, and human resources. Healthcare, FMCG, and manufacturing industries have the highest percentage of interim employees in India. 

The best way to hire interim employees is through contract staffing agencies who, with qualified and specialized professionals, bridge the skill gap the organizations require.

Contract staffing may ensure efficient work force
Contract staffing may ensure efficient work force

Why is Contract Staffing Trend Increasing in India?

The growth of the gig economy and temporary workforce intensification are pushing up the demand for part-timers in the labor force. It has brought a 10-12% growth in Contract staffing agencies in India. But, this surge owes to not one but many reasons.

Here are those 3 reasons behind the increasing trend of contract staffing:

  • Getting efficient talent pool: Getting the proficient person in the specific designation at the right time is tedious. The hiring process must consider all the stages-from the job or project description, profile scanning, and candidate short listing to fixing and handling interviews. At the same, it must not be a wasteful expenditure. So, contract staffing is the best solution for organizations with tight budgets requiring specialized experts with comprehensive experience. Its experienced experts swiftly carry out the entire process within a limited budget.
  • With rapid technological advancement: we are introduced to something new and better. Even the recruitment process could not escape this advancement. Companies face immense pressure to fill the vacant position in a short span. After all, to stay ahead in the competition-they need skilled talent to meet the work demands beforehand. So, to meet this forever-growing need, the contract staffing workforce remains ready to match the curve with the resource pool to fulfill any urgent requirement.
  • It is the era of start-ups: For a new start-up, it is hard to accomplish in-house human resource roles as the focus stays more on core work, and the designation is expensive. Hence, contract staffing is the best solution for them where the focus remains on core work but the skilled workforce increases within budget. It gives the company scope, time, and money to expand.
Benefits of contract staffing hiring
Benefits of contract staffing

What are the Advantages of the Contract Staffing?

The 3 main advantages of Contract Staffing are:

Focus on Core Business:

Hiring is a tedious task. Assigning in-house staff for this purpose can affect the core business. Contract staffing companies offer tailor-made staffing requirements and help you focus on achieving the aspired goal & objective.

Reduce overhead expenses:

Recruitment is a time and money investment process. Conducting the process through in-house staff is an expensive affair. You require a team to manage hiring and related administrative tasks. Permanent recruitment can be a huge liability, especially during retrenchments and laying-off. Contract staffing agencies curb these administrative overheads and relieve the organization of the responsibility and costs of training sessions.

The pool of Talented Candidates:

Contract staffing companies specialized in resource management work with the changing trends or needs of the market. Hence, they always stay ready with a pool of skilled and experienced candidates. So, it becomes easy for the organization to get the right candidate for the designation to meet urgent needs.

Final Words: Why contract staffing is increasing in India

Contract staffing services have emerged as a win-win situation for employers and employees. With 15 million provisional employees in India, the temporary staffing market is getting vast and competitive. The talent, flexibility, and higher payout have made it a sustainable option for start-ups, medium, and even big corporate in a country like India.

PITCS is one such contract staffing company. It has a broad pool of skilled talent and has provided 8000+ contract staffing solutions. For decades it has invested in the right talent for the right jobs. So, if you are also looking for contract staffing solutions, Contact us at +91 804 110 4141 or email us at