Visible Shift Towards #Contractual #Employment Seen in Top Indian #IT Companies

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Twelve plus years – more than a decade, the term ‘Contingent workforce’ was once undervalued. These constituted employees who were stationed outside the norm of ‘Permanent Job’. Such a workforce was contingent on contractual or situational conditions for project implementation. The uncertainty or non-permanence around their work patterns was not appreciated. And yet, service integrator who need niche skills or extra help temporarily employed them on engagement basis.

Employment trends changed over the years, Millennial and Generation Z has made ‘Contractual Employment’ more glorious and productive. Pay per Hour, Pay per Engagement is the industry norm today. Unlike, the salaried permanent employees who feel their jobs are secured in a customary 40-hour or more workweek with company culture aligned benefits.




Although, fact remains with 360 degree feedback mechanisms, KPI’s, KRA’s, and other performance improvement measures; consistent achievements are the only way one can survive in this competitive market. Collabera has seen this steady growth of ‘Contingent labor’ as almost fail-safe methodology among our clients. Our distinguished clientele has taken a leap with proper mechanisms that have processes and systems incorporated to manage this steadily growing workforce. Today among our clients, 35 % of hiring procedures are around contingent work force.

Accepted on both sides, this contractual labor category is highly skilled, heavily experienced and one of the best options for our clients under the following circumstances.

  1. Availability of ‘niche skill sets’ at affordable cost are mostly through contractors/consultants
  2. Visible shift in organizational priorities to compete against their global competitors
  3. Organizations looking for outside influence to implement strategic and financial decisions
  4. A win- win between projects to fill in short-term gaps with immediate resource
  5. Absolute ‘Technical fitment’ for specific labor segments
  6. Lack of skills/knowledge in the candidate pools of  hired full-time workers
  7. Organizations especially IT industry that regularly tries to cut labor/headcount costs
  8. Plethora of new skills and the demand for these in the market
  9. Changing trends “Your #Startup Idea – Our Seed Fund” now #Millennial are their own Boss
  10. Diversity Hiring Trends have balanced cost of hire and become a real source of Brand value
  11. Performance Driven KPI’s KRA and effective management skills have further tilted the balance
  12. Adoption of several software and analytical tools to measure workforce productivity


Contingent labor benefits the company model as it does not have any demands for company allocated privileges unlike permanent hire, and with the young generation it brings in different skills altogether. Younger generation as contingent workforce has this relentless energy coupled with fresh opinions, smart and gadget friendly skills. If channelized appropriately, the future workforce can be a windfall to our clients rather than ‘Misguided Missiles’.

Contingent labor workforce growth is 100% assured with the increase of #Digital #Transformation of large scale organizations. An organization like ours has efficiently managed processes and systems that support, recruit, manage this workforce end to end. We have started convincing our clients to take advantage of contingent hire cost efficiencies. We help them balance the hiring process and risks associated with payroll and employer branding. Our core expertise lies in supporting clients with complete Enterprise Software for all major business transformation functions like HR, IT, Procurement, Financials and Project operations.

I must mention Collabera has over the years been an extended arm for our clients across 60+ locations and is spread across 3 continents. Our frameworks and process driven systems help guide the team Collabera can help manage the use of contingent labor and proactively begin to identify the gaps where you must focus. We cater to the changing needs and demands of future workforce #Millennial and channelize their energy to deliver sustainable project implementation.

Author Profile

 Shibani Patel |  Vice President – Collabera

In addition to her all time responsibilities, Shibani heads Client Relations, #Corporate Sales, Service Delivery, Contract Negotiations, Business #Operations, and #Project Management. Shibani Patel recently shouldered Change Management, People Management, Employee Relations and so much more at Collabera. She travels regularly and has dedicated most of work life for delivering clients with the right team of people, process and projects. You can reach out to her directly through the blog comments and she’ll be happy to answer your queries.


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