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Key Points

India's flexible staffing industry has shown modest growth of 6.1% in Q1 FY26, with the IT sector leading the charge. The technology segment experienced a robust 12.3% year-on-year increase, driven by strong demand for AI, cloud, and digital services. Challenging economic conditions have tempered overall hiring momentum, reflecting a more cautious approach to workforce expansion. The Indian Staffing Federation reports its members now employ approximately 1.83 million workers in the formal flexible workforce.

Key Points: India Flexi Staffing Grows 6.1% IT Leads Tech Hiring Surge

  • IT staffing drives flexible workforce growth with 12.3% year-on-year increase
  • Digital transformation fuels demand for specialized tech talent
  • Sector experiences modest 6.1% overall growth in first quarter
  • Hiring constrained by economic challenges and reduced consumer spending
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Flexi staffing grows 6.1 pc in Q1 FY26, IT segment leads with 12.3 pc growth

Indian staffing industry sees modest 6.1% growth in Q1 FY26, with IT segment showing robust 12.3% expansion amid digital transformation trends

"Q1 FY26 indicates the changing face of formal employment growth - Lohit Bhatia, Indian Staffing Federation President"

New Delhi, Oct 7

India's flexi staffing industry grew 6.1 per cent year-on-year in Q1 FY26, driven by robust IT staffing performance, according to a report on Tuesday.

The overall flexi staffing industry witnessed a quarter-on-quarter growth of 1.5 per cent in Q1 FY26 compared to Q4 FY25. The general flexi segment, excluding IT, grew by 1.4 per cent QoQ, said the report from the Indian Staffing Federation.

While demand from key sectors such as FMCG, e-commerce, retail, logistics, and manufacturing continued to drive employment, the pace was tempered by a period of consolidation and delayed hiring decisions, the industry body added.

The IT flexi staffing industry delivered a standout performance, recording a robust QoQ growth of 5.5 per cent and an impressive 12.3 per cent YoY increase, the report noted.

The robust growth signalled a strong revival in specialised technology needs, driven by strong demand for AI, cloud, and digital services, along with the growth of Global Capability Centres (GCCs).

"Q1 FY26 indicates the changing face of formal employment growth, evidenced by a deceleration in flexi employment growth to 6.1 per cent YoY -- the slowest Q1 pace since the 2020 pandemic. This moderation is primarily attributed to challenging economic conditions and reduced consumer spending, which constrained overall hiring numbers," said Lohit Bhatia, President, Indian Staffing Federation.

The IT staffing segment delivered robust performance, achieving a strong 5.5 per cent QoQ increase. This momentum, marked by a 12.3 per cent YoY growth, underscores the non-cyclical nature of digital transformation demands, said Manmeet Singh, Vice President, Indian Staffing Federation (ISF).

ISF informed that its members created 91,500 formal positions in the last year, bringing the total formal flexi workforce employed by members to approximately 1.83 million by the end of Q1 FY26.

- IANS

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Reader Comments

R
Rohit P
While IT growth is impressive, I'm concerned about the "slowest Q1 pace since 2020 pandemic" mentioned. The economy needs to create more jobs across all sectors, not just IT. Hope the next quarter shows better numbers for manufacturing and other industries.
A
Arjun K
Flexi staffing is becoming the new normal in India. Many of my friends are working on contract basis in IT companies. The 12.3% YoY growth in IT staffing shows how much demand there is for tech talent! 💻✨
M
Meera T
The growth in GCCs is particularly interesting. Many multinational companies are setting up their capability centers in India, creating good opportunities for our tech professionals. This trend should continue!
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Sarah B
As someone from HR background, I appreciate seeing these detailed numbers. The 91,500 formal positions created in the last year is significant. Flexi staffing provides much-needed flexibility for both employers and employees in today's dynamic market.
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Vikram M
The report mentions "delayed hiring decisions" due to economic conditions. This is very true - many companies are being cautious with permanent hiring and preferring contract staff. Hope the situation improves soon for job seekers.

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