Tech Gig Boom: Niche Skills Fuel Freelance Surge as Companies Navigate Hiring Challenges

The demand for freelance tech professionals is skyrocketing as companies desperately seek niche skills, particularly for newly established global capability centers (GCCs) and business process management (BPM) projects. This trend is fueled by a cautious hiring market where cost flexibility reigns supreme.

According to data presented by Deloitte, a notable 75% of the 250 companies included in a recent survey are contemplating the utilization of gig workers to fill their vacant positions in the year 2024. This marks a significant increase from the 61% reported in the previous year. Correspondingly, statistics from the freelance platform Flexing It indicate a parallel trend, demonstrating a year-on-year surge of over 30% in the volume of projects within the technology sector.

Industry experts emphasize that the adoption of flexible talent is proving crucial for newly established Global Capability Centers (GCCs) to swiftly access skills that would otherwise necessitate a prolonged developmental period. Simultaneously, the broader technology sector benefits by circumventing the challenges posed by hiring freezes, as companies leverage gig workers to meet their evolving workforce needs.

According to a report of ET, The adoption of the gig workforce is on the rise, with a notable 14% increase in the number of organisations considering this model, said Vamsi Karavadi, director-human capital consulting, Deloitte. Organisations are seeking to tap into specialised skills, attain financial benefits and access a flexible talent pool that facilitates scaling up or down based on business requirements, said Karavadi. Concerns that organisations previously harboured regarding risks and the availability of  qualified talent are diminishing.

Karthik Sridharan, the CEO of Flexiple, a search firm, highlighted, Many tech companies are maneuvering around hiring freezes by engaging freelancers. Despite the increasing demand for gig workers, experts note that companies are judiciously selecting roles suitable for this model. The sought-after skills in high demand encompass data science, data modeling, cloud computing, cybersecurity, and artificial intelligence/machine learning (AI/ML).

Chandrika Pasricha, CEO of Flexing It, stated, "The surge in gig demand is driven by the necessity for specialized skills and the need for new expertise that organizations either lack internally or seek externally to foster innovation. She added, "Our GCC-focused talent solution enables organizations to access an on-demand talent pool of over 80,000 freelancers, swiftly upgrading systems to integrate this expanding pool into their broader talent strategy. We are establishing curated and high-quality talent pools across more than 20 in-demand skill areas for GCCs.

During the initial three quarters of the current financial year, Flexing It has witnessed an impressive year-on-year surge of over 140% in the registration of consultants whose primary skill lies in the tech domain. Experts emphasize that venturing into new skill areas internally can be challenging and time-consuming. Leveraging the expertise of skilled freelancers and consultants proves instrumental in bridging this gap, offering a valuable solution for companies seeking to swiftly adapt and integrate emerging skills into their operations.