DECODING “GIG ECONOMY”

Emergent Industry Shift Towards A Blended Work Model

December 2020
Foreword

The “Gig” economy is not a 21st century phenomena. Historically, with every economic downturn, size of the workforce seeking transient employment has
increased non-linearly in the short-term, but this workforce has been inelastic. With return to pre-downturn levels of economic output, this transient
workforce decreased, equally disproportionately. This trend was upended during the 2008 recession. Rise in employment levels in the post-recession
recovery phases have lagged the rise in economic activity, resulting in unwarranted employment choices, “under-employment”, and people giving up on
their search for a well-aligned job. Also noticeable was a strong correlation between the rise of Gig workers and recovery from the last recession.

COVID-19 has seen technology play the role of a great leveler, as location and time zones become less relevant. This has boosted opportunities for Gig
workers, and for providers of solutions/platforms enabling a Gig workforce marketplace. As organizational performance continues to be under stress
considering ongoing macro-level uncertainty, companies are now steering towards Gig workforce as an alternative, asset-light talent pool, fundamentally
geared to meet variable, and dynamically shifting, demand.

NASSCOM and Aon initiated an early- The research points to functional areas
stage study into the trends in Gig and job roles where Gig will play a
Economy in Indian industry. The findings prominent role, and further, analyzes
are encouraging, as well as, directional in trends in Gig worker engagement models,
that they illustrate how this shift in the from transient to long-term value
workforce model is manifesting itself in propositions. This journey is nascent, and
times of the global pandemic. It is enterprises across sectors, and within
encouraging to witness Tech industry subsectors, will experiment, evolve, and
leadership in adopting Gig work models. eventually converge to certain standards
The sector remains positively committed in Gig hiring, engagement, compensation,
to expand and mature its practices and and performance management. We will
Debjani Ghosh Nitin Seth
emerge as a pioneer in this new continue to explore this emerging future
President, NASSCOM CEO, India & South Asia, AON
workforce model over the next 2-5 years. of the blended workforce model.
Contents

Study Scope

Executive Summary

Gig Promoter Score – Concept & Methodology

India Gig Economy 2020 – Overall Industry Trends

India Gig Economy 2020 – Tech Sector Deep Dive

The Journey Ahead

Glossary

Appendix I – India Gig Economy 2020 – Overall Industry Deep Dive

Appendix II – Survey Participants’ Profile

About Us
STUDY SCOPE AND
EXECUTIVE SUMMARY
 Study Scope – Key Questions To Ask About The Emerging Gig Economy

Which jobs are Giggable now and

In its primer on Gig
in the future?
workforce in India, this
study aims to decode
What drives the shift towards
current and future pan- hiring more Gig workers?

industry shifts, and

explore more deeply, How do companies assess
performance of Gig workers?
specific hiring,
compensation, and
engagement practices How do firms re-engage and
remunerate Gig workers?
that are evolving across
the Indian Tech industry Which engagement models
are preferred – short-term or
long-term?

A “Gig Economy” is a free and global market where companies and contractors
(independent workers) set short-term and on-demand professional
relationships, or “gigs” that are flexible and skill-based tasks or projects.
5
 Executive Summary (1/2)

Gig model of workforce is evolving beyond its use for pure situational augmentation to become a prominent capacity and capability development model that will emerge as a key
component of the bended workforce model of the future. And tech industry leads Indian industry in overall Gig hiring today.

Indian companies currently employing Gig workers Tech companies employing Gig workers Tech subsectors employing Gig workers

73
57 54
38
49% ~60%
Indian Tech sector firms IT Services BPM Software GCC
currently employ additional Products
Gig workers as part of their
overall workforce. The
Nearly half of Indian industry is actively sector is further geared to
increase overall Gig IT Services firms have seen higher levels of
engaging in Gig work model, as a flexible
workforce employment Gig hires for standardized delivery roles, yet,
capacity scale-up and cost reconstitution
over the next 2-5 years. in most companies, Gig headcount is well
model that will become a prominent source of
below 10% relative to the overall headcount.
specialist talent in the next 2-5 years.

*Sectors are classified as nascent, emerging, or established based on the number of

organizations adopting Gig workforce model of talent in the respective sectors Nascent Gig Players Emerging Gig Players Established Gig Players
 Executive Summary (2/2)

Tech industry plans to boost Gig employment in the next 2-5 years, led by BPM and IT Services, particularly in roles that are modular, process-oriented, and measurable to build a
robust, long-term engagement model beyond transactional contract-based work arrangements.

Sectors Hiring Most Gig Employees Functions With Most Giggable Roles
Top Sectors & Functions

2020 Next 2 – 5 Years 2020 Next 2 – 5 Years

1 IT Services BPM 1 Operations Operations

2 BPM IT Services 2 Sales Admin & Support

2020: IT Services has emerged as the top Gig employing subsector,
followed by BPM
In Next 2-5 Years: BPM will substantially boost Gig hiring in roles
that are process-oriented and standardized; while IT Services will
seek creative ways to modularize projects
2020: Backend operations roles, such as customer support,
transaction processing, HR operations, will continue to be more
giggable
In Next 2-5 Years: Admin & support roles will see a notable
increase, as more of these roles become standardized

Top Gig Recruitment Criteria Prominent Gig Compensation Models

Hiring Factors

2020 Next 2 – 5 Years 2020 Next 2 – 5 Years

1
Broad understanding of the problem statement and 1 Fixed fee model Fixed-fee model
how the upstream and downstream value chains work
Outcome-based
2 Years of experience and qualifications 2 fixed-fee and T&E
Time & Effort Model

*Sectors are classified as nascent, emerging, or established based on the number of

organizations adopting Gig workforce model of talent in the respective sectors Nascent Gig Players Emerging Gig Players Established Gig Players
GIG PROMOTER SCORE (GPS)
Gig Promoter Score (GPS) – Measuring Industry Gig Readiness

What is GPS?
Gig Promoter Score is a measure to assess industry readiness on employment of Gig workers across industries / sectors.

How do we measure GPS?

Gig Promoter Score is measured as a ratio of the number of organizations who strongly agree to increasing Gig workers in the future
versus organizations that don’t agree to increasing Gig workers.

How do we analyze GPS?

Based on the Gig Promoter Score, the industry can be classified into three broad categories:

Zone of Optimism Zone of Realism Zone of Caution

We employ average-to-high We employ low-to-average We employ low number of Gig

number of Gig workers now, number of Gig workers now, and workers now, and believe that the
and believe that the demand believe that the demand for Gig demand for Gig workers will not
for Gig workers will increase workers will remain steady in the increase in the future
substantially in the future future

The Gig workforce model of talent is an evolving model at present and might continue to be so for next 2-5 years. As organizations mature in this space, it would
`
be a constant endeavor to assess Gig promoter maturity to understand evolving Gig readiness and trends for various industries.
India Gig Economy 2020 –
Overall Industry Trends
 Nearly Half Of India Inc. Employs Gig Workers, Tech Sector Leading At 60%, Although At An Aggregate Level, Gig Hires Are
Only 10% Of The Total Workforce

Organizations currently employ Gig workers overall Overall adoption of Gig workforce across industries in India

Percent of firms that hired gig workers in 2020, by sector

57% Nascent Gig Players

47%
32% 35%
49% 15%
Emerging Gig Players

Established Gig
Players
FMCG - BFSI Manufacturing Services Tech
Pharma

Gig headcount in relative percent to overall firm headcount, by sector

For majority of the participating organizations, Gig workers comprise less than 5% of the total headcount

Tech Services BFSI Manufacturing Pharma

100%
88%
75%
52%
31% 38%
27%
13% 13% 9% 13% 13% 6% 13% 0% 0% 0%
0% 0% 0% 3% 0% 0% 0% 0% 3% 6% 0% 0% 0%

Less than 5% 5%-10% 10%-20% 20%-30% 30%-40% More than 40%

• Indian Tech sector has the highest Gig workforce base of all sectors and is considered an established Gig player. While majority of
KEY INSIGHTS the sector employs less than 5% headcount in the Gig model, this intensity will likely improve
• Contrarily, Services sector has wider spread as nearly 20% of the firms have 30%+ Gig talent in the workforce

*For detailed functional, role-based analysis and insights on performance, rewards, and engagement models, review Appendix slides 27-29.
India Gig Economy 2020 –
Tech Industry Deep Dive
 Nearly 75% of IT Services Firms Hire Gig Workers Today; But Software Product Firms Boast of Higher Relative Headcount

Tech companies currently employing Gig workers Sub-sector adoption of Gig workforce

73
57 54 Nascent Gig Players

38
Emerging Gig Players

Established Gig
Players

43% IT Services BPM Software

Products
GCC

Organizations do not currently

57% Gig headcount distribution by sub-sector

employ any Gig workers in the Majority organizations report that their Gig
organization workforce is <10%, relative to total headcount
Organizations currently 100%
employ Gig workers in the
organization
50% 50%
38%43%
25% 25% 29%
14% 14%
6% 6%

Less than 5%-10% 10%-20% 20%-30% 30%-40% More than

5% 40%
GCC IT Services Software Products BPM

• IT Services is perceived as an established sector for Gig workforce, and will continue to grow, although, across majority of
KEY INSIGHTS organizations in the sector, Gig headcount is less than 10%
• Interestingly, Software Products companies have a higher concentration of Gig workforce, relative to overall headcount, with nearly
30% having more than 40% Gig hires in overall headcount.
 BPM Subsector Will Emerge The Most Prominent Gig Employer, While IT Services Will Witness Relative Decline

Tech organizations plan on

60% increasing the amount of work

given to Gig workers in the next
2 – 5 years
36% plan on maintaining current
Gig workforce levels, while only
3% indicate a reduction

BPM GCC
Nascent Gig
100% of respondent companies 59% GCCs plan on increasing Gig Players
plan on higher Gig workforce in the workforce in the next 2 – 5 years
next 2 – 5 years

Emerging Gig
Players
IT Services Software Products
56% IT Services firms plan on 46% Product firms plan on
increasing Gig workforce in the next increasing Gig workforce in the next
2–5 years 2 – 5 years Established Gig
Players

• While BPM is perceived as an emerging Gig player at present, the sector plans on substantially increasing employment of Gig
KEY INSIGHTS workers over the next 2 to 5 years
• Software Products, which is also an emerging Gig employer, will see the least increase in Gig hiring over the next 2-5 years
 Most BPM Firms Plan To Hire Gig Workers in Well-Structured and Standardized Job Roles In Admin & Support, HR
Operations, and Inbound/Outbound Sales

High ZONE OF
▲GPS OPTIMISM Finance
Future Hiring Propensity in Next 2-5 Years

Customer
R&D
Sales
Support
Change in Gig Promoter Score

Operations

Admin & Support

Marketing Applied ZONE OF
Research
Inbound
Operations / REALISM
Transactional HR
Sales
Processing

Outbound
Sales
Frontline
Learning Product/Service
Sales HR Operations
Life-cycle
Management
Legal Recruitment Product Management /
Category Management

New Product Employee Digital Sales (Go to

Customization Relations Marketing
ZONE OF
Market)
CAUTION
Comp & Ben
New Product
Development Tax
Controllership Operations / Client
Operations
Treasury
Low Fundamental Research
▲GPS
Low GPS Current Gig Promoter Score High GPS

• Majority of the roles fall under Zones of Caution & Realism and are less likely to be gigged
KEY INSIGHTS • Sales Operations, Operations & Admin & Support roles will witness increase in gig workers in the next few years
• In R&D, Applied research will remain high on employment of gig workers now & in the future
 GCCs Have Adopted Gig At A Comparatively Faster Rate, And They Will Continue To Scale Gig Workforce In Sales, HR, and
Customer Support

High ZONE OF
▲GPS OPTIMISM Finance
Future Hiring Propensity in Next 2-5 Years

Recruitment
Sales R&D
Operations
Change in Gig Promoter Score

Employee
Relations
Learning Inbound Admin & Support
Sales
Customer ZONE OF
Support Frontline
Sales
REALISM
Product Management / Operations / HR
Category Management Transactional
Processing Outbound
Sales Product/Service
Marketing
Digital Life-cycle
HR Operations Marketing
Management
New Product
Customization Sales (Go to
New Product Treasury ZONE OF
Development Market)
CAUTION
Applied Comp & Ben Controllership
Research Operations / Client
Tax Legal
Fundamental Research Operations
Low
▲GPS
Low GPS Current Gig Promoter Score High GPS

• Majority of HR roles will witness an increase in Gig workers, with the exception of Comp & Ben
KEY INSIGHTS • Product Management / Category Management roles will witness a significant increase compared to other roles in Product Lifecyle
Management
• Sales will witness the highest increase in gig workers over the next few years
 For IT Services, Sales Roles Led The Pack But Seem To Be Losing Momentum In The Future; Instead, Operations, Admin &
Support, And Product Management Will Have More Gig Workers

High ZONE OF
▲GPS OPTIMISM Finance
Future Hiring Propensity in Next 2-5 Years

Operations /
Transactional R&D
Processing
Change in Gig Promoter Score

Customer Support
Sales
Operations
Admin & Support
HR Operations Marketing ZONE OF
REALISM
HR
Product Management / Digital
Category Management Marketing
Controllership Product/Service
Legal
Treasury Outbound Inbound
Life-cycle
New Product Sales Sales Management
Customization
New Product Frontline
Development Sales
Tax Learning Comp & Ben Sales (Go to
ZONE OF
Applied Market)
Employee Recruitment CAUTION
Research Relations

Fundamental Research Operations / Client

Operations
Low
▲GPS
Low GPS Current Gig Promoter Score High GPS

• HR & R&D remain concentrated in the Zone of Caution, except for HR Operations
KEY INSIGHTS • Operations and Admin & Support will witness an increase in Gig workers in the next 2-5 years
• Sales (except for Sales Ops) employs high number of Gig workers now, but is not expected to increase in the future
 Fewer Software Product Firms May Have Gig Hiring Plans In Next 2-5 Years, Yet Those Who Will, Show Demonstrably Higher
Adoption Than Other Tech Subsectors In Sales, Digital/General Marketing, Most HR and Operations Roles
Digital
Marketing

High Marketing
Frontline
ZONE OF
▲GPS Sales OPTIMISM Finance
Outbound
Sales
Future Hiring Propensity in Next 2-5 Years

Inbound R&D
Sales
Change in Gig Promoter Score

Legal HR Operations Customer Support Admin & Support

Sales ZONE OF
Recruitment Employee Operations
Relations Operations / REALISM
Transactional HR
Learning Processing

Product/Service
Product Management /
Life-cycle
Category Management Management

Comp & Ben

Sales (Go to
ZONE OF
Tax Market)
CAUTION
New Product Fundamental
Customization Research Operations / Client
New Product Applied Treasury
Operations
Low Development Research Controllership
▲GPS
Low GPS Current Gig Promoter Score High GPS

• R&D, Finance & Product / Service Lifecycle Management will remain concentrated in the zone of caution, except for Product / Category
KEY INSIGHTS Management
• Sales will continue to employ high number of Gig workers
• Admin & Support (especially Marketing) will witness a steep increase in Gig workers
 Even As Engagement Norms Evolve, BPM Firms Will Gear Towards Continuous Performance Review Of Gig Employees Due To
The More Structured Nature Of Job Design, While Software Product Companies Will Seek End Output As the Core KPI

Within Tech industry, performance of Gig workers is largely company-led, although early trends by subsectors are visible

Most BPM organizations that IT Services organizations Software Products organizations

employ Gig workers set employing Gig workers set say that they use no defined metrics
performance criteria in performance criteria in for evaluating performance of Gig
collaboration with Gig employees collaboration with Gig employees workers if the end output is

57% and review performance from time

to time during the project 32% and review final performance
against set criteria 23% delivered

Sector wise distribution of organizations on preferred methods to evaluate performance of Gig workers

Performance is reviewed from time to Performance is reviewed on final No defined metrics for
RANK time during the project performance against set criteria evaluating performance

1 BPM (57%) IT Services (32%) Software Products (27%)

2 IT Services (31%) GCCs (19%) IT Services (23%)

3 Software Products (23%) BPM (14%) GCCs (13%)

4 GCCs (22%) Software Products (8%) BPM (5%)

*1 being the highest and 4 being the lowest Nascent Gig Players Established Gig Players
Emerging Gig Players

• Despite a late and slow start, BPM organizations already lead the way in opting for a continuous performance evaluation method of
KEY INSIGHTS engagement with Gig workers
• Though majority organizations in the Tech industry have set performance criteria against which performance is evaluated either
frequently or at the end of the Gig work contract, performance evaluation processes are still dynamic and organization-specific
 BPM Sector Will Strive to Build Lasting Touchpoints To Re-Engage Past Gig Employees, And In Most Products and BPM Firms,
Consensus Is Strong On Utilizing Previous Performance To Shape New Work Norms

Tech industry subsectors also seem divided when it comes to building sustainable relationships with Gig workers, indicating that it might depend on nature of the
job, talent availability in the job market, and the expertise of a Gig worker

BPM Organizations say that they Product organizations, on the Product organizations say that
strive to differentiate their rewards contrary to BPM firms, say that previous performance of Gig
practices and ensure multiple they do not strive to build a long- workers has an impact on the price
touch points with gig workers to term association with gig workers they’re willing to pay for the second
100% build a lasting relationship
62% 86% gig.

Sector wise distribution of organizations on their approach to building long-term relationships with Gig workers

Strive to differentiate their rewards practices and ensure multiple Previous performance has a bearing on
RANK touch points with gig workers to build a lasting relationship the pay for subsequent gigs

1 BPM (95%) Software Products (86%)

2 IT Services (68%) BPM (81%)
3 GCCs (50%) GCCs (62%)

4 Software Products (38%) IT Services (59%)

*1 being the highest and 4 being the lowest Nascent Gig Players Established Gig Players
Emerging Gig Players

• IT Services organizations, despite more experience with Gig hiring, do not consider past performance while deciding future pay for
KEY INSIGHTS Gig workers
• BPM organizations indicate that they offer differentiated rewards, and intend to build lasting relationships with Gig employees
 Most Tech Firms Will Continue to Use Referrals To Retain Gig Workers Within Their Work Areas In The Firm

Re-engagement with previous Gig employees is a preference for most Tech firms, either within the same area of work or in an adjacent job role

BPM organizations that employ GCCs say they would recommend Software Products firms indicate that
Gig workers say they would Gig workers for other opportunities they would not recommend Gig workers
recommend these employees for in the exact same area of work for other opportunities in the
other opportunities in areas of organization.

57% work with are adjacent

50% 38% Same proportion indicates referring Gig
workers to the exact same area of work

Sector wise distribution of organizations on trends they follow to re-engage with Gig workers

Recommend Gig workers for other Recommend Gig workers for other Would not recommend Gig workers for
RANK opportunities in areas of work with are adjacent opportunities in the exact same area of work other opportunities in the organization

1 BPM (57%) GCCs (50%) Software Products (38%)

2 IT Services (55%) Software Products (38%) GCCs (31%)

3 Software Products (23%) IT Services (32%) IT Services (15%)

4 GCCs (19%) BPM (29%) BPM (14%)

*1 being the highest and 4 being the lowest Nascent Gig Players Emerging Gig Players Established Gig Players

• Established Gig players, such as IT Services organizations, prefer to re-engage with Gig workers in same areas of work over
KEY INSIGHTS providing opportunities in adjacent areas of work.
• Emerging Gig players, such as BPM organizations, most prefer to engage with Gig workers for adjacent work opportunities.
The Journey Ahead
What Does The Orb Say !
Growth in Pockets
While Technology and BPO sector
is one of the early adopters of the
gig workforce models of talent, but it
is most likely to show a slowdown in
its journey to become an
established gig player.
Growth of gig workforce is expected
to be seen in pockets and limited to
certain job roles. While Services
organizations are established gig
players at present, it will be
interesting to see the evolution of
emerging player such Third party /
BPO organizations in this space.
Virtualization &
Remote Environment
Remote workforce has become the
new normal. Most businesses in the
technology sector are looking to
operate remotely in future either
partially or completely. As such, it is
expected that this trend will lead to a
phenomenal rise in
employability of gig workforce with
reduced location constraints and
businesses willing to take
advantage of growing expert
economy to supplement their
workforce with highly-skilled and
talented freelance experts.
Organized Gig
Unlike traditional employees, gig
workers are not regulated by
Social Contract
existing employment laws in India
thereby permitting organizations to
contractually determine the terms The employer employee social
contract has evolved since ages to
and conditions of their engagement
an extent where the onus of choice
without incurring the costs
lies on employee rather than
associated with providing statutory
employer. With the changing winds,
employee benefits. With the
it will be interesting to see how
continued rise of gig workforce
employers plan to engage and
across the spectrum, it will be
the motivate gig workforce and strive to
interesting to see how regulatory
embed them in their cultural
environment shapes up the future of
ecosystem.
gig workers.
Glossary
Glossary of Terms

Definition

Business Process Erstwhile BPO; now re-branded as BPM - includes processes that may be IT-enabled, do not necessitate on-shore presence and
Management (BPM) are hence, offshoreable.
IT services involve a full range of engagement types that include consulting, systems integration, IT outsourcing/managed
IT Services
services/hosting services, training, and support/maintenance.
Global Capability Centers Captive units include both MNC-owned units that undertake work for the parents’ global operations and the company owned units
(GCCs) of domestic firms.
Packaged software is programs or code sets of any type, commercially available through sale, lease, rental, or as a service.
Software Products
Packaged software revenues typically include fees for initial and continued right-to-use packaged software licenses.
Regular Full-Time Employee means an employee who is regularly scheduled to work 40 hours per week with a single principal
Full Time Employee
employer
A contract worker works for a company but usually signs a “contractual employee contract” that spells out a specific project he will
Contractual Employee
work on, for a specific length of time and for a specific hourly, weekly or project rate.

Sub-Contractors A firm or person that carries out work for a company as part of a larger project

Flexible jobs include any type of job flexibility. Essentially, anything that isn't a typical 9-to-5 office job can be considered a flexible
Flexi-Workers
job. Work flexibility gives people control and freedom over when and where they work and is often adaptable to life changes

Freelancers A freelancer is a self-employed person who offers services, often working on several jobs for multiple clients at one time

Gig workers are independent contractors, online platform workers, contract firm workers, on-call workers and temporary workers.
Gig Employees
Gig workers enter into formal agreements with on-demand companies to provide services to the company's clients

25
Appendix I – India Gig
Economy 2020 – Overall
Industry Deep Dive
 Pan-India Industry View of Gig Hiring: Operations, Admin And Support, And Select HR Roles Will Continue To Employ More Gig
Workers Compared To Roles That Require Deeper Interaction, More Experimentation, and That Have Non-Standard Definitions

High ZONE OF
▲GPS OPTIMISM Finance
Customer
Recruitment Support
Future Hiring Propensity in Next 2-5 Years

Operations / Transactional R&D

Processing
Change in Gig Promoter Score

Marketing Legal
HR
Sales Operations Digital
Admin & Support
Operations Marketing ZONE OF
REALISM
Frontline
Employee Learning HR
Relations Tax
Sales
Applied Inbound
New Product Research Sales Product/Service
Customization
Outbound
Life-cycle
Sales Management
Comp &
Ben Fundamental Research
Sales (Go to
New Product
Treasury Controllership ZONE OF
Development Market)
Product Management /
CAUTION
Category Management
Operations / Client
Operations
Low
▲GPS
Low GPS Current Gig Promoter Score High GPS

• High Current GPS; Higher Future GPS: Operations/Client Operations roles

• High Current GPS; Moderate Future GPS: Specific roles – Recruitment (HR), Digital Marketing (Admin & Support), Tax (Finance), and
KEY INSIGHTS Fundamental Research (R&D)
• Moderate Current GPS; Moderate Future GPS: Sales and HR, Marketing and Legal (Admin & Support), Applied Research (R&D)
• Low Current GPS; Low Future GPS: Finance and PLM, with exceptions of new product customization and tax roles that see moderate ▲GPS
 Pan-India Industry View of Gig Hiring: Indian Tech Sector Focuses More On End-To-End Jobs And A Long-term Relationship
with Gig Employees, Even As Overall Industry Trends Stay Transient And Shall Continue To Evolve Over Next 2-5 Years

Current preferences in job design, rewards, compensation, and performance management of Gig workers
Overall India Tech Industry

Re-engineering • Did not have to change / re-engineer their jobs at all to suit the Gig workforce 54% 55%
Jobs for • Had to create more end-to-end jobs to suit the Gig workforce 12% 16%
Gig Workers
• Had to break down the jobs into smaller pieces to suit the Gig workforce 33% 29%

• Do not design metrics for evaluating performance if the end output is delivered
22% 19%
Measuring • The performance criteria is decided in collaboration with the Gig worker against which performance is
Performance reviewed from time to time during the project 30% 29%
of Gig Workers • The performance criteria is decided in collaboration with the Gig worker against which final
19% 21%
performance is evaluated.

• Previous performance impacts the price for the second Gig 71% 69%
Rewarding
• Differentiate rewards practices and ensure multiple touch points to build a lasting relationship
Gig Workers 56% 60%
• Do not strive to build a long-term association with a Gig worker 44% 40%

Factors Driving • Remunerate for a fixed fee which is decided during the contract initiation 50% 55%
Hiring & Rewards • Others* 27% 19%
for Gig Workers
• Remunerate them basis time and effort 14% 17%

*Others include government mandated minimum wages, need based cost, fixed + bonus / commission-based incentive plan

Indian Tech sector stands out in important aspects related to job role design and long-term Gig worker engagement. Sector shows:
• Preference to employ Gig workers for end-to-end job roles, over disaggregated job roles with smaller units allocated to Gig workers
KEY INSIGHTS • Greater inclination towards long-lasting relationships, hinting at a stronger organizational integration of Gig talent within the sector
• Inclination towards a fixed fee model of remuneration for Gig workers, in tune with existing contractual strategy
Pan-India Industry View of Gig Hiring: Industry Appears To Converge on Broad Business Acumen, Experience, and Education
As Key Hiring Criteria, And On A Fixed-Fee Compensation Model

Cross-Industry view of plans on compensating Gig workers now and in the future

Fixed fee models of

1 Fixed Fee Model as 3 5 Basis Quality of compensation for Gig
decided during Time & Effort Model Outcome workers remain the
1 contract initiation 2 5 most used model in
determining Gig
worker compensation
2 Others (Combination of 4 Basis Actual unit of work
now and in the future.
all the mentioned delivered. No fixed
4 models) 3 wage

Cross-industry view of hiring and compensation criteria for Gig workers now and in the future

Broad understanding of
1 Broad understanding of the 3 Relevant Industry 5 Proven Capability
the problem statement &
problem statement and how Experience in the areas of
experience and
Expertise
1 the upstream and 3 5 qualification remain the
downstream work most critical factors in
determining Gig worker
2 4 Exposure to the exact compensation now and
Years of experience and type of work at hand in the future.
Qualifications
2 4

Current Future
State Rank State Rank
Appendix II – Survey
Participant Profile
Survey Participants

Aon reached out to nearly 60 Tech companies in India to understand Gig adoption, prevalent trends and practices

1 10FA India( Prudential Process Management) 30 Goldman Sachs

2 Airseva (An Airbnb Company) 31 Groupon
3 Allstate India 32 HSBC Tech Centers
4 Altisource 33 Hurix Digital
5 Amadeus Software Labs India Pvt Ltd 34 Infoedge
6 Amagi 35 Infosys Ltd
7 Amazon 36 KGS
8 ANI Technologies 37 Mashreq Global Services
9 ANZ 38 Mindtree
10 Athena Health Technology Pvt Ltd 39 Mphasis
11 BNY Mellon 40 Myntra
12 Brillio Technologies 41 Nmore
13 Cerner 42 Paypal
14 Cimpress 43 Persistent Systems Ltd
15 Citi Global Services 44 Principal Global
16 Colt Technology Pvt Ltd 45 Publicis Sapient
17 Crimsonlogic 46 Quinnox Consultancy Services Ltd
18 CSA Group 47 Quotient Technology India Pvt Ltd
19 Deloitte USI 48 RBS
20 Equip Infotech Pvt. Ltd 49 RR Donnelley
21 Ericsson 50 Siemens
22 Etisalat 51 Societe Generale GSC Pvt Ltd
23 EXL Services 52 Tecnotree Corporation
24 Ernst & Young GDS 53 TEG Analytics
25 Flatworld 54 Trafigura Global Services
26 Flipkart 55 United Health Group
27 Fujitsu Consulting India Pvt Ltd 56 Volvo Group India
28 GE Healthcare 57 WNS
29 Global Logic 58 Xerox

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About Aon

32
About NASSCOM

The National Association of Software and Services Companies (NASSCOM®) is the premier trade body and chamber of commerce of the Tech industry in India and
comprises over 2800-member companies including both Indian and multinational organizations that have a presence in India. Our membership spans across the entire
spectrum of the industry from start-ups to multinationals and from products to services, Global Service Centers to Engineering firms. Guided by India’s vision to become a
leading digital economy globally, NASSCOM focuses on accelerating the pace of transformation of the industry to emerge as the preferred enablers for global digital
transformation. Our strategic imperatives are to reskill and upskill India’s IT workforce to ensure that talent is future-ready in terms of new-age skills, strengthen the
innovation quotient across industry verticals, create new market opportunities - both international and domestic, drive policy advocacy to advance innovation and ease
of doing business, and build the Industry narrative with focus on Talent, Trust and Innovation. And, in everything we do, we will continue to champion the need for
diversity and equal opportunity. NASSCOM has played a key role in not just the growth of the Industry to become a $180+Billion industry today, but we have helped
establish the Tech industry in India as one of the most trusted partners, globally. NASSCOM continues to make significant efforts in contributing towards India’s GDP,
exports, employment, infrastructure development and global visibility. Our membership base constitutes over 95% of the industry revenues in India and employs over 4
M professionals, and as technology blends into every aspect of the economy, we expect the industry to become key driver of growth, development and inclusion for the
country. Our mission is to make India a global hub for Innovation and Talent so when the world thinks Digital, the world will think India.

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