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Why is Contract Staffing Beneficial for a Country like India?

Contract Staffing Services in India

With a volatile economy and business environment like India, investment in labour becomes a pressing challenge. Hiring efforts must take into consideration the nature of jobs or projects to ensure that staff levels are maintained according to the demand of the situation rather than being a wasteful expenditure. Contract staffing is one such smart solution for Indian organizations functioning on a tight budget but requiring highly specialized experts with comprehensive experience.

What is Contract Staffing?

Contract Staffing is a temporary employment arrangement between a contractor offering staffing services and an organization. Employees are hired on a contractual basis for a given duration and a given pay rate for a specific purpose.

What are the benefits of Contract Staffing?

Prioritise core business activities: Allocating in-house staff on activities that are merely tangential to the business may be an expensive affair. Therefore, temporary staffing agencies come to the rescue with solutions that are tailor-made to your staff requirements. Getting qualified employees at a cheaper cost helps an organization streamline its operations.

Reduced cost burden: Permanent employment may be a huge liability, especially during stressful situations like laying-off and retrenchments. Temporary staffing agencies assist organizations in curbing administrative overheads and relieving them of the responsibility and costs associated with training the employees for specific tasks. Regulatory compliance for contract staff is managed through the ?The Contract Labor (Regulation & Abolition) Act ? 1970? (CLRA).

Flexible arrangement: There is flexibility in the duration of employment. Further, if things work out well for both parties, organizations may offer permanent positions to good performers without the hassles of dealing with incompetent staff.

Pool of specialized staff: Healthcare, manufacturing and FMCG industries have the highest percentage of temporary staff hires in India. The top skills in demand for contract staffing include tech, administration, human resources, logistics, retail, legal, finance, sales and marketing. Contract staffing agencies provide qualified and specialized experts to bridge the skills gap organizations face for specific vital tasks. Furthermore, contract staffers have greater flexibility and willingness to perform.

Contract staffing agencies in India have been growing at 10-12% annually. It is primarily due to the intensification of the temporary workforce. The growth of the gig economy in India is pushing up the demand for part-timers in the labour force.


With 15 million contractual employees in India, the temporary staffing market is only going to get bigger and more competitive. The flexibility, higher payout, and talent are making it a sustainable option in a country like India. It is a win-win situation for both employers and staffers and is expected to grow exponentially in the near future.

Moreover, In India, with an increasing number of unemployable graduates, contract staffing is helping to weed out unprofessional and incompetent staff by investing in the right talent for the right jobs. To stay ahead in the market, temporary staffing agencies must identify and train their staff in niche skills and ensure their availability at the right time.

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