<p>Bengaluru: IT staffing witnessed new employment growth at 2.3 per cent in the third quarter of FY26 (October to December 2025), and IT/consulting sector rebound was driven by tier-2 tech firms and GCCs (Global Capability Centres) leading sequential recovery. GCCs contributed 73 per cent of new IT employment growth with <a href="https://www.deccanherald.com/technology/artificial-intelligence/the-democratisation-of-artificial-intelligence-on-an-enterprise-scale-3861625">Artificial Intelligence</a> (AI), cloud, cybersecurity, and platform engineering roles, according to the Indian Staffing Federation (ISF) Q3 2025-26 Flexi Staffing Employment Trends Report. </p><p>Released on Tuesday, the report highlighted that GCCs, e-commerce, and Logistics remained key drivers. It revealed a complex landscape for an industry that grew 4.4 per cent YoY (Q3 26 vs Q3 25) to reach a total of 1.91 million formal workers. While the sector added 69,000 new jobs over the last four quarters — driven largely by festive demand in e-commerce, logistics, FMCG, and healthcare — it simultaneously experienced a marginal 0.5 per cent QoQ (Q3 26 vs Q2 26) dip.</p><p>"This transition from previous double-digit expansion to the current 4.4 per cent rate is viewed as alarming, as it signals a visible and significant slowdown in the pace of formal employment expansion. Ultimately, this cooling hiring sentiment underscores a shift toward more cautious growth, emphasising that while flexible models remain central to India’s organised workforce, a more focused strategic approach is now required to sustain the momentum of formalisation in a tightening labour market," the report said. </p>.Tech hiring picks up: India reports 8% rise in February talent demand after long slowdown.<p>Lohit Bhatia, President of the ISF said, “The 4.4 per cent growth in flexi-staffing underscores a resilient model that remains the primary engine for India’s formalisation, particularly for the 59 per cent of new workers aged 18–25 entering the formal fold. While the implementation of new labour codes created a strategic pause in Q3 FY26 as costs were recalibrated, the sector’s role in bridging the informal-to-formal gap remains indispensable." </p><p>He anticipates a robust return to hiring-led growth in Q4 and Q1 FY27 as the market fully integrates these regulatory shifts into its long-term strategic approach. </p><p>Manmeet Singh, Vice President, ISF said the IT staffing sector has demonstrated remarkable resilience with a 16.1 per cent YoY surge, primarily catalysed by GCCs. While global macroeconomic shifts and US regulatory changes have introduced some caution, the sustained demand for specialised expertise in AI, cloud, and cybersecurity continues to position IT staffing as a critical gateway for high-quality, salaried careers for India's youth, he said. </p><p>The report also revealed significant data from the past decade (2013 to 2025) regarding the impact of the formal contract staffing industry. The industry now supports 7.23 million contract workers with EPFO-linked social security.</p>
<p>Bengaluru: IT staffing witnessed new employment growth at 2.3 per cent in the third quarter of FY26 (October to December 2025), and IT/consulting sector rebound was driven by tier-2 tech firms and GCCs (Global Capability Centres) leading sequential recovery. GCCs contributed 73 per cent of new IT employment growth with <a href="https://www.deccanherald.com/technology/artificial-intelligence/the-democratisation-of-artificial-intelligence-on-an-enterprise-scale-3861625">Artificial Intelligence</a> (AI), cloud, cybersecurity, and platform engineering roles, according to the Indian Staffing Federation (ISF) Q3 2025-26 Flexi Staffing Employment Trends Report. </p><p>Released on Tuesday, the report highlighted that GCCs, e-commerce, and Logistics remained key drivers. It revealed a complex landscape for an industry that grew 4.4 per cent YoY (Q3 26 vs Q3 25) to reach a total of 1.91 million formal workers. While the sector added 69,000 new jobs over the last four quarters — driven largely by festive demand in e-commerce, logistics, FMCG, and healthcare — it simultaneously experienced a marginal 0.5 per cent QoQ (Q3 26 vs Q2 26) dip.</p><p>"This transition from previous double-digit expansion to the current 4.4 per cent rate is viewed as alarming, as it signals a visible and significant slowdown in the pace of formal employment expansion. Ultimately, this cooling hiring sentiment underscores a shift toward more cautious growth, emphasising that while flexible models remain central to India’s organised workforce, a more focused strategic approach is now required to sustain the momentum of formalisation in a tightening labour market," the report said. </p>.Tech hiring picks up: India reports 8% rise in February talent demand after long slowdown.<p>Lohit Bhatia, President of the ISF said, “The 4.4 per cent growth in flexi-staffing underscores a resilient model that remains the primary engine for India’s formalisation, particularly for the 59 per cent of new workers aged 18–25 entering the formal fold. While the implementation of new labour codes created a strategic pause in Q3 FY26 as costs were recalibrated, the sector’s role in bridging the informal-to-formal gap remains indispensable." </p><p>He anticipates a robust return to hiring-led growth in Q4 and Q1 FY27 as the market fully integrates these regulatory shifts into its long-term strategic approach. </p><p>Manmeet Singh, Vice President, ISF said the IT staffing sector has demonstrated remarkable resilience with a 16.1 per cent YoY surge, primarily catalysed by GCCs. While global macroeconomic shifts and US regulatory changes have introduced some caution, the sustained demand for specialised expertise in AI, cloud, and cybersecurity continues to position IT staffing as a critical gateway for high-quality, salaried careers for India's youth, he said. </p><p>The report also revealed significant data from the past decade (2013 to 2025) regarding the impact of the formal contract staffing industry. The industry now supports 7.23 million contract workers with EPFO-linked social security.</p>