The staffing industry in India has grown significantly in the last decade. In the past five years, the

Indian staffing industry has grown at the rate of 20-25% per year— to create a league of 7000+ staffing companies.

These staffing companies provide people with a platform to gain employment with fair compensation, health benefits and more.

With a swiftly growing staffing market, India is poised to be the largest globally.

India’s Rapid Growth in the Staffing Industry

India has one of the largest staffing

workforces, next only to China and the USA.

By 2025, the temporary workforce will account for over 10% of India’s formal employment sector. At the same time, a major challenge could be lower wages deterring people from joining the staffing industry.

According to the Indian Staffing Federation, the industry saw a growth of 3.6% at the end of the 2020-2021 fiscal year. Post the pandemic, and the staffing industry has vastly helped women, youth and highly skilled workers with the rising Flexi or temporary employment trends.

High growth in temporary staffing was witnessed in the IT sector, e-commerce, manufacturing and logistics irrespective of Covid-19. Organisations are now starting to consider Flexi staffing as a prominent way to meet their workforce needs.

Staffing Industry Growth Efforts

Formalised staffing is bound to grow in the coming years, and the growth in the post-pandemic world proves that it is essential. Staffing agencies provided social protection to their employees during the pandemic, leading to higher productivity and quality work.

Over 31% increase was seen in the Flexi work format, more than other employment types during 2021. It is predicted that there will be an increase in temporary staffing in the healthcare, edu tech, IT and pharma industries in the fiscal year 2022.

Temporary staffing provides stable employment and saves hiring expenses for businesses. It also provides employers relief from the challenge of filling immediate requirements for a short duration and lifts the burden of hiring and training.

The temporary employees get an opportunity to work in different roles in a diverse set of industries, improving their overall work experience. It’s a win-win situation for both the employer and the temporary employees.

The pandemic has encouraged staffing agencies to focus on upskilling the employees as per the ever-evolving industry trends.

While the future looks bright for the staffing industry in India, some challenges need to be overcome by implementing specific processes.

How to Handle the Shift to Online hiring?

Covid-19 has also disrupted the way we look at academic qualifications; they are being interpreted in a different context than before. Staffing agencies must develop new ways to source potential candidates because the traditional hiring processes are not adequate for hiring the best-suited candidates.

With the work from the home shift, the hiring process has shifted online, requiring the staffing agencies to be more diligent while hiring. A candidate would be closely assessed based on personality, job skills, past work experience, soft skills and more. Modern HR tech platforms will make it easier for staffing agencies to source, hire and track their applicants.

Enhancing Employee Benefits

The future of the staffing industry in India will be widely focused on employee benefits. Employees now expect more than just salary and job flexibility. Candidates are now expecting health benefits, mental health benefits, sick pay, annual leave and more


We hope this article has helped you understand the future of India’s staffing industry.