Labour Reforms Driving Structural Shift In India’s Gig Hiring, Says Quess Corp CEO | Exclusive

Labour reforms are accelerating the formalisation of India’s gig and contract workforce, making flexible hiring a permanent feature of corporate workforce strategies, according to Quess Corp CEO Lohan Bhatia.

Speaking exclusively to NDTV Profit, Bhatia said the rise in gig hiring is structural rather than cyclical, with labour codes playing a key role in pushing companies towards more organised and compliant staffing models. “Gig and contract hiring is now structural, not temporary. Companies are using flexible staffing not just for cost control, but to manage volatility, scale faster and access niche skills,” he said.

Contract roles currently account for around 10–11% of total IT demand, underlining how deeply embedded flexible work models have become in India Inc’s hiring strategy. Employers are increasingly turning to contract talent for project-based work, specialised technology roles and short-duration assignments, while keeping core teams focussed on business-critical functions.

At the same time, clearer labour codes governing wages, social security, documentation and compliance are encouraging companies to move away from informal arrangements. Employers are becoming more deliberate about compliance, cost visibility and workforce structuring. “Labour reforms are bringing clarity. Companies now have a clearer view of their obligations, and that is driving formalisation across the workforce,” Bhatia said. While some firms may briefly slow hiring as they adjust to compliance requirements, he expects the long-term impact to improve transparency, reduce regulatory risk and create a more sustainable employment ecosystem.

Overall hiring sentiment in 2025, Bhatia said, was marked by caution rather than contraction. Global uncertainty moderated hiring volumes, but recruitment remained steady in essential and revenue-linked roles, with companies prioritising critical positions and deferring discretionary hiring. “Companies are being selective. They are prioritising critical roles and deferring discretionary hiring, but they are not shutting down recruitment,” he said.

Despite the cautious environment, India’s IT job demand touched nearly 1.8 million roles in 2025, up 16% from 2024, reflecting sustained confidence in India’s long-term growth outlook.

Hiring resilience was most visible in BFSI, IT services, healthcare, manufacturing and Global Capability Centres (GCCs). GCCs emerged as a key stabiliser, with their share of total IT hiring rising to 27% in 2025 from 15% in 2024 as multinational companies expanded operations in India. “Global firms are no longer looking at India just as a cost centre. They are building strategic capability hubs here,” Bhatia said.

Within IT, hiring remained selective rather than broad-based. Large-scale fresher and campus hiring stayed muted, particularly for entry-level roles. Demand was strongest for professionals with 4–10 years of experience in AI and machine learning, cloud engineering, cybersecurity and GCC-led specialised roles. “There is a clear shift from volume to value. Companies want people who can deliver impact immediately,” he said.

On automation, Bhatia said AI is reshaping skills rather than eliminating jobs. While demand for repetitive and legacy roles is declining, particularly in traditional reporting and manual processes, hiring is rising sharply for GenAI-related roles such as prompt engineering, AI operations and AI governance. Companies are also investing heavily in reskilling, moving from a “hire-to-fill” to a “grow-to-fill” model. “Companies are building AI capabilities internally by upskilling their people,” he said.

AI-led transformation is spreading beyond technology teams into core business functions. In BFSI, AI is reshaping credit underwriting, fraud detection, risk analytics and customer support, while manufacturing and logistics are seeing increased demand for AI-enabled roles in predictive maintenance, digital factories, quality checks and supply-chain planning.

Looking ahead, Bhatia expects hiring growth of 12–15% in 2026, driven primarily by specialised roles rather than large-scale recruitment. Growth areas include AI, cybersecurity, data infrastructure, BFSI, manufacturing and GCCs. “The job market will be defined by precision, not scale. High-value skills, adaptability and sustainable workforce models will matter more than sheer numbers,” he said.