The Biggest IT Staffing Markets in India

The primary reasons for incessant flexible staffing IT companies are to reduce employee liabilities as well as offset the risks related to uncertainty with project inflow. Nevertheless, the IT staffing market is efficient enough to adapt to the changing business dynamics of the Indian IT industry.

India is poised to become the largest IT staffing market in the world. According to an analysis by the Indian Staffing Federation (ISF), the Indian staffing industry is valued at ₹26,500 crores, wherein flexible or flex staffing is estimated to be at ₹19,500 crores. Flex staffing makes up for almost 75% of the total staffing industry, while permanent staffing accounts for only 12% of the pie at ₹3200 crores.

The primary reasons for incessant flexible staffing IT companies are to reduce employee liabilities as well as offset the risks related to uncertainty with project inflow. Nevertheless, the IT staffing market is efficient enough to adapt to the changing business dynamics of the Indian IT industry. So, let us check out the five biggest IT staffing markets in India.

What is IT staffing?

Before we learn about the Indian states that have huge potential for IT staffing markets, let us understand what IT staffing is about and how it helps organisations.

In essence, IT staffing is an outsourcing strategy, wherein the staffing service provider offers skilled employees to their clients (the IT companies) to achieve their business goals. IT staffing is the most efficient way of getting specialised and highly qualified staff on the long term as well as on a short-term basis at a considerably low cost.

Most IT companies do not have the required resources to keep and manage a bench strength of employees who can start working on new projects as and when they arrive. On top of it, searching and hiring specialised skilled staff on an immediate basis is a costly and time-consuming process.

This is where IT staffing helps. It has a pool of specialised staff ready to be deployed when required by IT companies. This flexible workforce has huge potential which can lift the IT staffing market into a billion-dollar industry.

Flexible workforce and India

It is predicted that the flexible workforce in India will double by the year 2021. According to a recent study, the flexible workforce within the Indian staffing market experienced compound yearly growth of 16.4% to approximately 3.4 million in 2018 in comparison to 2.2 million in the year 2015 and became the fifth-largest flexible workforce market worldwide in 2018.

Moreover, this growth juggernaut is predicted to accelerate further to about 22.8% from 2018 to 2021 to approximately 6.1 million resources. The IT and ITES sector at approximate 13%, saw the largest penetration of the flexible workforce for any private sector entity.

Notwithstanding the current market disturbances due to the COVID-19 pandemic, the IT staffing market continues to grow on the back of a huge flexible workforce. Though IT companies need to adapt to the changing business dynamics post the pandemic and the ensuing lockdown, they have transformed successfully nonetheless.

These flexible staffing solutions are a win-win situation for both the employer as well as the employees. For the employer, it provides access to specialised and highly qualified staff without any obligations or liabilities. For the employee, it gives them the flexibility to work as per their schedules. They can take a break from work when they please and wish to rejoin as a flexible staff when the company needs them.

  • IT staffing market in Karnataka
    Bangalore is called the silicon valley of India. It is the birthplace of the Indian software industry and also the largest IT staffing market. IT staffing companies have significantly influenced the IT industry. IT staffing is big in Bangalore. Fresh companies and startups, unable to accumulate the required resources for a full-time workforce, often opt for IT staffing services to provide them with skilled employment.

IT staffing is indeed a thriving business employing many talented and highly qualified professionals and making the project delivery process fast and efficient. According to the reports by the Indian Staffing Federation (ISF), Karnataka dominates the IT staffing industry in India and is valued at $1.08 billion.

  • IT staffing market in Telangana
    According to reports, the IT exports from Telangana registered a growth of approximate 17.9% for the financial year 2019-20. This growth is more than double the national average of 8.09%. Further, IT employment in Telangana grew by approximately 7.1% in comparison to the national average of approximate 4.92%.

This phenomenal growth is attributed to the robust IT staffing market and its increasing demand among various IT companies, small or big. IT staffing companies today are a great source of employment for engineers and technicians. All these statistics indicate that Telangana has and will continue to be the preferred IT investment destination in the future.

  • IT staffing market in Maharashtra
    Pune and Mumbai dominate the IT staffing landscape in Maharashtra. Pune is the hub for the IT industry in Maharashtra. With a cohesive startup ecosystem, many new IT companies are blooming on the horizon. These companies need the services of expert specialists to help drive their business and projects, but they don’t carry the resources for full-time or long-term employment. This has necessitated the rise of the IT staffing market in Maharashtra.

The flexible IT workforce mainly dominates the IT staffing industry in Maharashtra. And with a size of approximately 0.48 billion, Maharashtra is the second largest IT Flexi staffing market in India following Karnataka.

  • IT staffing market in Delhi NCR
    The IT industry has become a great employment booster for the Delhi and National Capital Region, and IT Flexi Staffing has played a key role in making Delhi NCR the hub for IT industries.

Flexi staffing may still be in its nascent stage, but it has huge future potential. Flexible employment has reduced risks and liabilities. Plus, companies can have access to expert professionals on a need-based contract basis. This builds efficiency and leads to better delivery.

The IT industry in Delhi is a thriving place for IT Flexi staffing. So much so that Delhi NCR, at 0.23 billion, is the third-largest IT Flexi staffing market in India, after Karnataka and Maharashtra.

These are the biggest markets for IT staffing in India. According to the current trends in the mature staffing markets of the USA and Europe, we can be very sure that IT Flexi staffing has huge potential and will only grow exponentially in the future. Plus, no IT company can predict or guarantee a steady flow of projects. Therefore, they have to rely on flexible staffing to get the required workforce for their project.

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Shalini L
Shalini L

One of the prime contributors for this blog, Expertise in Staffing and Recruitment, Content Strategist by Profession. A Music Lover & Traveller by Choice.

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