Hon’ble Finance Minister in the recent Budget mentioned that social security benefits will be extended to workers in ‘Gig Economy’. Let’s have a look at what it entails.
With technology changing the way workplaces are evolving, a novel concept called ‘Gig Economy’ is being leveraged by numerous companies as well as workers. As per Forbes, it refers to the increased tendency for businesses to hire freelancers for a concentrated short-term project.
Regarded as the ‘future of work’, Gig Economy is driven by the plethora of freelance opportunities with flexible work hours without any time barriers. A recent study by McKinsey estimates that around 20% of the workforce in developed markets is engaged in independent work.
According to Oxford Internet Institute’s ‘Online Labour Index’, India leads the global Gig Economy with a 24% share of the online labour market, with demand for software developers, creative and marketing professionals. The younger generation is choosing flexibility over job security and benefits, according to the index.
New-age startups are bringing customised options for the Gig Economy workers and making this a viable career option for the youth. For instance, till just a few years ago, the concept of sharing an office space was alien to the Indian ecosystem and finding office space was one of the biggest challenges for startups and those servicing the on-demand ecosystem. Today, the likes of WeWork, The Hive, Work Square etc. have introduced India to co-working spaces, and Indian startups and investors are now backing this movement in a big way.
On the other hand, there has been a meteoric increase in the total number of marketplaces that connect individuals, companies and startups to Gig Economy participants. Organised players like Flexingit, Tapchief etc. act as a bridge between a corporate and an individual, whereas globally the likes of Fiverr and Freelancer have made an impact on individuals working independently in the gig economy, particularly in the creative fields. Similarly, PricewaterhouseCoopers (PwC) has launched ‘Talent Exchange’ that matches independent consultants to client projects.
Though the Gig Economy might not be applicable to all economy participants, it is expected to see more millennials joining the freelance workforce and the introduction of crowdsourcing platforms providing work opportunities to thousands of freelancers from all over the world. To reap the maximum benefits of this form of economy, it is imperative to ensure other factors like uniform technological access and skill levels to fall in the right place, along with the support of regulatory and government agencies.