Compiled by Yojanaa Nagda

The days of being hired by a company and working there until retirement are long gone, recently more and more people have started taking up a variety of short-term jobs which are also known as gigs. 

The gig economy is beginning to take up a bigger portion of the workforce. The main reason for it to get such a great momentum is due to the loss of full-time jobs during the pandemic. Partially, also because of the evolution of tech companies, which are now able to hire workers from anywhere in the world.

But before we go further, what is gig economy?

A gig economy is a free-market system where people operate as independent contractors for others – they set their own hours, choose their own clients and usually work on a per project basis rather than a monthly salary.

Gig workers are also known as freelancers or temporary workers.

Gig Economy In India

According to a new report by Boston Consulting Group (BCG) the gig economy has the potential to serve up to 90 million jobs, add nearly 1.25% to India’s GDP, while creating millions of jobs for low-income workers 

Source: Mint

The software and technology businesses employ half of all Indian gig workers. Around 50 percent of projects with startups, major corporations, and professional services have said that strategy, technology, and marketing are the top three skills in demand. 

However, the majority of these gig labour studies concentrated on white-collar occupations, with little attention paid to the growth and demand for blue and grey-collar gig workers, who make up the majority of India’s gig workforce. 

Personal transportation, delivery, and at-home personal services have been the most conspicuous areas of activity in India’s gig economy. Uber and Ola , Swiggy, Zomato, Delhivery, and Food panda and Urban Company are all the key participants.

Work is now outsourced to gig workers more quickly and at lower prices, improving the cost-effectiveness of firm operations. Partners have also been able to reskill or upskill in response to on-demand skill requirements, resulting in larger assignments for the former.

Furthermore, millennials and Gen Z prefer freelancing to corporate work cultures due to growth opportunities, flexibility, and a better work-life balance.

Freelancers can benefit from a higher rate of pay and the opportunity to earn more money by taking on multiple roles, among other things. Additionally, freelancing opportunities provide more flexibility and control over working hours, as well as the ability to maintain work-life balance and personal wellbeing. Gig partners can continue to upskill themselves and choose meaningful work assignments by using platforms that offer skilling and training programmes.

Over the long term, the gig economy has the potential to transact over $250 billion in work volume and contribute 1.25 percent to India’s GDP. This necessitates collaboration between work fulfilment platforms, businesses, and gig partners.

Platforms can only scale if they can provide compelling value propositions to both demand and supply sides of the market. In this regard, it’s critical to ensure the availability of high-quality, dependable gig partners, as well as to comprehend, address, and alleviate the pain points faced by gig partners.

One can expect the gig economy to become as mainstream as traditional jobs, not only in terms of operations, but also in terms of acceptance, sooner rather than later.