Flexi-staffing poised to become Rs 2.2 lakh crore market in FY26, says report
A report by the ISF, titled 'Indian Flexi Staffing Industry 2025: Employment Growth - Sectoral & State Analysis', states that this milestone is driven by the sustained adoption of tripartite (employer, employee and clients) workforce and a broad-based economic recovery.
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NEW DELHI: The formal flexi-staffing market is estimated to reach a staggering Rs 2,20,000 crore in FY26, as per the Indian Staffing Federation (ISF)
A report by the ISF, titled 'Indian Flexi Staffing Industry 2025: Employment Growth - Sectoral & State Analysis', states that this milestone is driven by the sustained adoption of tripartite (employer, employee and clients) workforce and a broad-based economic recovery. Flexi hiring allows businesses to adapt swiftly to changing demands and focus on core activities while reducing compliance liabilities, with quick access to talent, with an important factor being workforce flexibility & scalability.
The report highlights a period of unprecedented growth and transformation for the flexi-staffing industry, with a projected market size that solidifies its role as a key driver of formal employment and economic expansion across India.
Lohit Bhatia, president, ISF, said, "Geographically, a significant portion of the formal contract workforce is being concentrated in five key states: Maharashtra, Karnataka, Uttar Pradesh, Tamil Nadu, and Telangana. The emerging growth in tier 2 and 3 cities is particularly encouraging, as it signifies a deepening of formal employment, offering temporary workers the security of recognised employment, fair compensation, annual benefits, and health benefits."
The study shows the trend has picked up due to increasing availability of skilled labour in Tier 2 and 3 cities such as Coimbatore, Mysuru, Salem, Hosur, Indore, Bhopal, Noida, Kanpur, Surat, and Vadodara.
Manmeet Singh, vice president, ISF, elaborated, "Logistics, BFSI, and manufacturing contribute majorly. The e-commerce sector has shown the most remarkable growth in flexi staffing over the past 5 years, with an average annual growth rate of 19.6 per cent. Fintech is another sector contributing to flexi staffing demand."
Suchita Dutta, executive director, ISF, said, "Overall formal Flexi workforce is anticipated to grow from 7.23 million in 2025 to 9.16 million in 2027. 71 per cent of the population looking for formal contract/flexi work are under 30 years of age. Women have notable participation in the flexi-workforce at 26 per cent in the last fiscal year."
FLEXING POWER
Formal workforce experienced a CAGR of 8.7% between FY23 and FY25
Significant portion of the flexi workforce, nearly 55% being hired by Maharashtra, Karnataka, Uttar Pradesh, Tamil Nadu, and Telangana
TN has 32.11 mn formal workers and 4.83 mn flexi-workers
Tamil Nadu contributes Rs 2,826 cr GST, with a revenue of Rs 15,703 cr from flexi-work
24% of the flexi-workers in the state are women
Automobile, garments and manufacturing are the upcoming high-potential sectors in TN
While Chennai and Coimbatore are among the cities deploying high numbers of flexi-numbers, Hosur and Salem are emerging as notable players in tech-related sectors
