GIG economy in India in 2022

Although the concept of the gig economy has been around for a long time, it has been under increasing scrutiny due to the increasing number of people who are able to access it through the Internet. Due to the technological advancements that have occurred in the past couple of years, it has become easier for people to access the gig economy. The concept of the gig economy was initially perceived as a side hustle. However, it has quickly become a trillion-dollar industry that has millions of participants. Due to the technological advancements that have occurred in the past couple of years, it has become easier for people to access the gig economy. However, it has also become harder to clearly classify what is and isn't part of the gig economy.

Employment within the gig economy

Some gig economy participants view their work as their main source of income, while others consider themselves to be secondary workers. These individuals are skilled and have no other options. Most gig economy workers prioritize being able to spend more time with their families and hobbies, being self-employed, and being able to fit full-time work around their private needs. They also reported higher levels of satisfaction and happiness than people who worked in traditional full-time employment. Despite the fact that they typically work more than 45 or 60 hours per week, these individuals earn slightly lower salaries.

The rise of the gig economy has made it easier for companies to find top talent. This allows them to reduce their overheads and improve their customer service while also gaining a competitive advantage by attracting and retaining top talent. On the other hand, freelance workers can expand their scope of work by adding another company to their portfolio. Over the next five years, 40% of executives worldwide expect the number of freelance workers to increase. They also believe that the adoption of gig platforms will be a significant trend. While for some, the gig economy is not a choice at all. It’s a struggle to make ends meet, and it can be very frustrating when work arrangements in the industry don’t provide the security that people need. However, with the help of the gig economy, these individuals can still earn a living. In India, the gig economy is similar to the country's informal labor sector, which has been operating for a long time and is unregulated. It provides workers with no social security or insurance. In 2016, the Online Labor Index reported that India is becoming one of the fastest growing online labor markets in the world. It showed that local employers are responsible for 5.9% of all the projects and tasks posted on the platform. This indicates that the traditional employment model in the IT-BPM sector is starting to change. According to the survey results, 45% of the respondents believe that the rise of the freelance workforce is a megatrend that will affect the industry.

Due to the rise of the gig economy, the current business landscape has changed significantly. It has prompted the government to introduce new legislation to regulate it. After getting into the challenges of measuring the success of the gig economy, it has been estimated that it has attracted more people and created more opportunities for employers. These factors have led to the increasing number of projects and tasks that require highly specialized skills. Some gig economy participants are able to supplement their monthly income by working in the industry. Others are able to make their primary living from the gigs. These individuals are highly skilled professionals who work with various companies. There are also individuals who have families and cannot afford to make a living.

Trends in Gig Economy with respect to India

·        In 2022, the continued evolution of the gig economy and the rise of technology will be one of the key workforce trends. This will allow more businesses and individuals to utilize work tech platforms. Through the gig economy, partners will be able to easily find work and manage their various tasks. It will also help them receive a variety of benefits such as payment and training. One of the most important factors that will affect the future of the gig economy is the emergence of a no-code technology that will allow businesses to manage their various tasks and workflows. This will allow them to easily implement a comprehensive view of their on-demand workforce. With this technology, they will be able to improve their efficiency and prevent their employees from getting lost in the shuffle.

·        Despite the traditional blue-collar jobs being over-represented in the gig economy, the future is expected to see a significant increase in the number of roles that are available for medium and high-skilled workers. Some of the key functions that will be considered for the gig economy in 2022 include IT, data science, marketing, and finance. Large enterprises will also adopt the model. After the various initiatives that have been launched to transform the workforce, we expect that around 30 percent of existing roles will be shifted to the gig economy in the next year. The factors that are driving this change include the need to digitally transform businesses, the pandemic, and the availability of a wider pool of qualified talent.

·        Due to the increasing number of jobs and the need to bridge the skills gap, gig partners are starting to actively engage in self-learning. This is because they are aware of the need to improve the skills of their employees. In addition to this, the government is also supporting a variety of initiatives that are aimed at increasing the availability of online learning. Aside from policies, work-fulfilment platforms also have a robust learning framework that includes in-app training and onboarding modules for their partners. This will help keep the gig workforce up-to-date and ready for the changes in the workplace. In addition, these platforms will additionally provide various training opportunities that are designed to encourage incremental skilling.

·        The pandemic has changed the traditional nine-to-five work structure. Because of this, the number of gig partners who are working remotely is expected to increase by 50 percent in 2022. Another interesting trend that will be seen in the gig economy is the increasing number of jobs in emerging markets. This will allow more businesses and individuals to utilize work tech platforms.

·        Inspite of the passage of Code on Social Security 2020, work-tech platforms are still ahead of the curve when it comes to providing benefits and policies. In 2022, they are already implementing various benefits such as micro insurance and the minimum wage. These policies are expected to be implemented across the entire gig economy in 2022. In addition, employers are also working toward creating a more conducive environment for their employees.

Conclusion

The gig economy is expected to continue driving the future of work as it continues to upend the traditional ways of working. To ensure that the country's economy grows at a 17 percent CAGR and generates $455 billion in gross volume by 2024, it is important that the government and the private sectors work together to establish a full-fledged ecosystem of service enablers, technology-based platforms, and public policies. Even though the industry faces various challenges, it has the necessary tools and resources to overcome them. The rise of the gig economy has drastically changed India's work culture. It has allowed employees to earn more autonomy and flexibility, which is a major factor that will continue to drive the future of work. As more individuals and businesses adopt the model, it is expected that the traditional full-time employment will eventually become a thing of the past.

Pic Courtsey-Jezael Melgoza at unsplash.com

(The views expressed are those of the author and do not represent views of CESCUBE.)