Temporary hiring gains momentum as over 12% IT professionals prefer flexible roles, report shows

Contractual staffing or temporary hiring has grown significantly over the past five years, with employers and employees inclined towards temporary arrangements, according to a report by talent solutions provider Careernet. The report highlights that 12-15 per cent of IT professionals now prefer temporary roles over permanent positions, and this percentage is expected to increase.

Several professionals view temporary positions as the first step to entering stable organisations that might be difficult to join directly in permanent roles. According to the report, most temporary IT professionals are in metro cities like Bengaluru, Hyderabad, Pune, Chennai, Gurugram, and Mumbai.

IT professionals also increasingly consider temporary roles viable alternatives since they provide them with flexibility and time to update their skills and gain diverse experience. This shift also benefits businesses, providing easy access to talented professionals for short-term and specific projects.

Careernet findings indicate organizations’ preference towards temporary resources for short-term, project-based, and non-core roles like IT Infrastructure Administration and Support, ERP Skills, and Software Development. Within the IT sector, the IT Services industry leads in adopting temporary hiring models, followed by the Consulting and BFSI industries.

Careernet’s findings identify specific skill gaps companies address through temporary hiring, like ERP Implementation and Management – especially SAP modules for manufacturing and ONG industries, Digital Transformation and Automation, and Legacy System Modernization. Moreover, in emerging technologies like AI and cybersecurity, there is an increasing demand for temporary talent, but their availability remains limited, the report observed.

Neelabh Shukla, CBO, Careernet, said, “Temporary hiring in the IT sector has huge opportunities that can be capitalized by both employers and employees. While professionals can gain flexibility and exposure, companies can access skilled professionals who suit their immediate, short-term and project-basis requirements. This trend is reshaping the traditional approach to employment in the IT sector. We are further anticipating a boost in demand for temporary IT roles in Q4 2024-25, with a focus on Data, Analytics, Salesforce, SAP, and digital skills.”