Contract staffing or temporary staffing has been around for a long time now in different forms and shapes. In the past, this model was used mainly in the field of agriculture and construction. Gradually we saw other industries as well using this model and started employing people to address their various business needs.

It is estimated that the Indian staffing industry was worth INR 270 billion in the year 2015 and is growing at a staggering rate of 12% per year since then. It is predicted that there will be around 2.9 million people working in the organized sector by the year 2018! Of late, the concept of temporary staffing has gone up considerably in the Indian recruitment industry and this trend is expected to rise in the coming year as well.


Key Benefits of Contract Staffing

The main reason why organizations outsource technical staff augmentation is to have additional time to concentrate on their core business competencies. Some of the other key benefits of contract staffing are listed here:

  • Provides access to a much wider talent and resource pool
  • Helpful in getting rebate in administrative overheads
  • There are no liabilities associated with permanent employment
  • Companies can focus completely on their core business activities
  • Accelerates the entire recruitment process


The Current Scenario of Staffing Industry

Keeping in mind the various benefits of contract staffing, more and more organizations are starting to use the concept of contract staffing and taking the help of staffing companies. The staffing industry is all set to witness a substantial growth in the coming years. The ever-expanding IT industry has been the key contributor to this boom and it is expected to grow manifold by the year 2020.

While IT is leading the list in terms of the numbers, the coming years will see a rise in the usage of contract staffing in other industries such as retail. E-commerce, BFSI, healthcare, etc. The Indian industry is already well-equipped to comply with the industry standards and has developed methodologies for faster delivery. The IT systems are now more mature and with the help of social media and other digital technologies, companies are able to reach out to associates.


“After China and the US, India has the third largest contract staffing workforce in the world.”


What Does the Future Hold for Staffing?

The Government of India and the IT & ITeS are the leading employers of contract workforce in the country closely followed by the retail sector. Some of the key points which need to be kept in mind include:

  • The Indian staffing industry is expected to grow by almost 20% by the year 2020.
  • Liberalization of several archaic labor laws has helped and will continue to boost the temporary workforce numbers
  • The challenges faced by the staffing companies are limited and the expanding possibilities of Indian staffing companies are abundant
  • This is the best time for companies to streamline their processes, improve their capabilities, and scale up towards the new growth trends!


SourceEdge’s Technical Staff Augmentation Services have been helping customers across the globe to overcome their volatile staffing needs. Our strength is our people! We have the required skills and expertise to find the right consultants which are best matched to meet the specific project requirements. By working closely with the customer, our talent acquisition team will identify the right resources and also help through the entire on boarding process.