Visakhapatnam will see growth in IT flex employment: ISF Report

The Indian Staffing Federation (ISF), the main representative body for India’s manpower outsourcing sector, highlighted that emerging cities including Visakhapatnam, Ahmedabad, Coimbatore, Surat, Kochi, and Nagpur are quickly turning into key employment growth hubs for IT flexible staffing. According to ISF’s Indian IT Staffing – Sectoral and State Employment Trends Report 2024, these cities are primed for a rise in demand, thanks to skilled talent pools, strategic locations, and solid manufacturing bases.

The report noted that India holds the second-largest position in the South Asia-Pacific (APAC) region’s rapidly growing IT staffing market. In FY24, India’s IT flexible staffing market was valued at $4.9 billion, with around 597,000 professionals in this sector, and is projected to grow at a 7% CAGR over the next two years.

ISF President Lohit Bhatia shared insights into the workforce landscape, stating that IT/ITeS and Global Capability Centers (GCCs) contribute significantly, making up 51% of the sector’s value and employing the largest IT flexible staffing workforce, at around 296,000. He added that GCCs, which are specialized centres operated by multinational companies, have a higher penetration rate in flexible staffing at 8.2%, outpacing traditional IT firms. Together, IT/ITeS and GCCs account for nearly half of the total market.

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Additionally, the BFSI and fintech sectors show the highest penetration rate at 17.1%, driven by growing needs in cybersecurity and cloud solutions. Bhatia noted that companies increasingly rely on flexible staffing for specialized skill requirements and project-based roles, particularly for mid-career professionals with five to ten years of experience.

On the demographics front, the report shows that young professionals aged 25-30 are the most sought-after in IT and GCC roles. Notably, the IT flexible staffing segment recorded high female workforce participation at 35% in FY24, with Delhi/NCR leading in female representation at 45%.

Bhatia also highlighted that five states—Karnataka, Telangana, Maharashtra, Tamil Nadu, and Delhi NCR—lead the IT flexible staffing market in India, collectively valued at $2.8 billion, which is 57% of the country’s total market. While cities like Visakhapatnam and Ahmedabad, and more are foreseen as emerging hubs, traditional tech centres like Bengaluru, Hyderabad, Chennai, Mumbai, Kolkata, and Delhi NCR continue to be at the forefront of the demand for flexible IT employment.