Labour reforms are fundamentally reshaping India's employment landscape, driving a structural shift towards formalised gig and contract hiring that has become a permanent feature of corporate workforce strategies. Quess Corp CEO Lohan Bhatia emphasises that this transformation represents a strategic evolution rather than a temporary adjustment.

Structural Transformation in Gig Economy

The rise in gig hiring reflects a fundamental change in how companies approach workforce management. Contract roles currently account for around 10-11% of total IT demand, demonstrating the deep integration of flexible work models into corporate hiring strategies. Companies are leveraging contract talent for project-based work, specialised technology roles, and short-duration assignments while maintaining core teams focused on business-critical functions.

"Gig and contract hiring is now structural, not temporary. Companies are using flexible staffing not just for cost control, but to manage volatility, scale faster and access niche skills," Bhatia explained.

Impact of Labour Code Reforms

Clearer labour codes governing wages, social security, documentation, and compliance are encouraging companies to move away from informal arrangements. The regulatory framework is driving greater deliberation around compliance, cost visibility, and workforce structuring.

"Labour reforms are bringing clarity. Companies now have a clearer view of their obligations, and that is driving formalisation across the workforce," Bhatia noted.

Hiring Trends and Market Dynamics

Despite global uncertainty, India's IT job market demonstrated remarkable resilience in 2025. The sector recorded nearly 1.8 million job roles, representing a 16% increase from 2024. This growth reflects sustained confidence in India's long-term economic outlook.

Global Capability Centres emerged as significant stabilisers, with their share of total IT hiring rising from 15% to 27% as multinational companies expanded strategic operations in India.

Sector-Wise Hiring Resilience

Hiring resilience was most pronounced across several key sectors:

• BFSI: Strong demand for AI-enabled roles in credit underwriting and fraud detection
• IT Services: Continued growth despite selective hiring approach
• Healthcare: Sustained recruitment in essential roles
• Manufacturing: Increased demand for AI-enabled predictive maintenance roles
• Global Capability Centres: Strategic capability hub development

Skills Evolution and AI Impact

The job market is experiencing a clear shift from volume-based to value-driven hiring. Demand remains strongest for professionals with 4-10 years of experience in artificial intelligence, machine learning, cloud engineering, and cybersecurity. Large-scale fresher hiring has remained muted, particularly for entry-level positions.

AI is reshaping skills requirements rather than eliminating jobs entirely. While demand for repetitive and legacy roles is declining, hiring is increasing sharply for GenAI-related positions including prompt engineering, AI operations, and AI governance.

Future Outlook and Growth Projections

Looking ahead, Bhatia expects hiring growth of 12-15% in 2026, driven primarily by specialised roles rather than large-scale recruitment. Key growth areas include:

• Artificial intelligence and machine learning
• Cybersecurity and data infrastructure
• BFSI sector expansion
• Manufacturing automation
• Global Capability Centre development

"The job market will be defined by precision, not scale. High-value skills, adaptability and sustainable workforce models will matter more than sheer numbers," Bhatia concluded.

Companies are increasingly adopting a "grow-to-fill" model over traditional "hire-to-fill" approaches, investing heavily in reskilling existing workforce to build AI capabilities internally.

Source: https://www.ndtvprofit.com/business/labour-reforms-driving-structural-shift-in-indias-gig-hiring-says-quess-corp-ceo-exclusive