Why freelance platforms are the future of work

A hot headline in a popular pink paper highlights where the future of work is headed: '7m Blue-collar Jobs may be Up for Grabs This Fiscal'. The report refers to a pan-India survey that indicates blue-collar workforce demand has surpassed that of the pre-COVID period, as demand and economic activity rebound.

Undoubtedly, the gig or platform economy is witnessing pent-up demand due to the easing of COVID-linked restrictions, rising consumption and festive sales. All of which is prompting companies to augment their human resources through the gig economy rather than legacy hiring that inflates costs.

Also Read: Work from home: More tech tools not always a solution

Multiple Mutual Benefits

But companies apart, the gig ecosystem is equally beneficial for workers. For the latter, gig offers the advantage of remote working, overall convenience and flexible work hours as per personal preference. 

Moreover, in the post-pandemic phase, gig platforms have enabled women, especially homemakers from Tier-2 and 3 cities, to resume working, earning an income and feeling more self-sufficient and self-confident as the gig model enables them to manage home, family and WFH at the time of their convenience and choice.

Today, large companies have moved beyond the traditional BPO model by opting for gig platforms. This allows them to scale effectively without incurring the fixed costs of tele-calling executives or other full-time employees. 

The gig model is an easy way for companies to start, curate and scale operations since customers can be reached remotely, boosting the growth potential of enterprises by 100x. 

Therefore, companies are displaying a higher preference for managed gig workforces to undertake key tasks in sales and marketing as well as customer experience and relationship roles, among others.

For readers who missed the 'gig economy' sunrise, the term denotes work done on a freelance, project or part-time basis, unlike traditional full-time jobs with fixed salaries. 

Gig workers are paid according to specific tasks done or predetermined deliverables and outcomes. In essence, it functions as an on-demand, task-based economy. 

By 2023, the global gig economy is slated to register a 17% CAGR, reaching a gross volume of around $455 billion. Currently, India ranks fifth in flexi-staffing, following the US, China, Brazil and Japan.

Fortunately, for both employees and employers facing pandemic-related challenges, gig platforms act as speedy facilitators for employment generation, seamlessly matching job seekers and job providers. 

These roles comprise retail sales executives, medical sales representatives, customer care executives, delivery persons, drivers, housekeepers, facility management personnel, security staff and warehouse workers, among many others. 

Key sectors include e-commerce, logistics, retail, FMCG, BFSI, apparel, healthcare and more.

Also Read: After 18 months of work from home, Wipro employees to return to office from Monday

Symbiotic Sustainability

The ongoing trends are not surprising since industry analysts have been predicting for years that the freelance or gig model is the future of work, worldwide. 

At 1.1 billion in 2019, freelancers accounted for one-third of the global workforce of 3.5 billion workers. Furthermore, in the half-a-dozen years up to 2020, the number of long-term freelancers soared by more than 50%.

That was in the pre-pandemic period. The coronavirus outbreak then turned things on their head. As the statistics of unemployed people and those on furlough kept growing, gig platforms witnessed an influx of talent from diverse domains. 

There is little doubt that the pandemic has given a tremendous fillip to the gig ecosystem. As per a UN report in December 2020, almost one in six millennials were rendered jobless after the pandemic. Freelance work was now the best substitute for full-time jobs.

Nonetheless, even before the pandemic struck, the transition towards the gig model was underway. The emergence of disruptive technology, 24x7 connectivity via smartphones and the rise of start-ups has also worked in favour of the gig ecosystem. 

Tech innovations and falling data costs permit non-core activities to be outsourced faster to freelancers and at relatively inexpensive rates, enhancing the cost-effectiveness of company operations.

The ascent of digital learning platforms such as Coursera, LinkedIn Learning, upGrad and Udemy also allow people to reskill or upskill as per on-demand skill requirements, attracting clients and winning gig assignments. 

As a result, thanks to these gig platforms, workers and companies have established a symbiotic relationship that benefits both parties via mutually beneficial, cost-effective terms.

Lastly, the Centre has given the gig economy a major push towards formalisation by enacting the new Code on Social Security, 2020 that will benefit all gig workers in the long run. 

Besides the freedom and flexibility of gigs, these labour reforms will encourage more people to shift to the gig ecosystem for gainful work. 

Such institutional measures will help in organising the gig industry and ensuring its long-term viability and sustainability, benefitting all the stakeholders - gig workers, the platforms, user enterprises and the government.

(The writer is the Co-Founder & CEO - GigIndia.)