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The flexi staffing industry records a 1.5% quarter-on-quarter (QoQ) rise, while over 91,000 new formal flexi jobs were created during FY25.
The IT flexi staffing segment outperformed, posting a strong 5.5% QoQ and 12.3% YoY growth in FY25.
The flexi staffing industry in India expanded by 6.1% year-on-year in FY25, supported by robust growth in IT staffing, even as macroeconomic headwinds tempered overall hiring momentum, according to the latest report by the Indian Staffing Federation (ISF).
Releasing its Flexi Staffing Industry Employment Growth Report for Q1 FY2026 (April–June 2025), the ISF said the industry recorded a 1.5% quarter-on-quarter (QoQ) rise, while over 91,000 new formal flexi jobs were created during FY25. The general staffing segment (excluding IT) grew 1.4% QoQ in Q1 FY26, reflecting moderation in hiring due to consolidation and delayed recruitment decisions.
In contrast, the IT flexi staffing segment outperformed, posting a strong 5.5% QoQ and 12.3% YoY growth, driven by demand from Global Capability Centers (GCCs), digital transformation projects, and investments in AI and cloud technologies.
Lohit Bhatia, president of the Indian Staffing Federation, said, “The April to June 2025 quarter indicates the changing face of formal employment growth, evidenced by a deceleration in flexi employment growth to 6.1% YoY — the slowest Q1 pace since the 2020 pandemic. This moderation is primarily attributed to challenging economic conditions and reduced consumer spending, which constrained overall hiring numbers.”
Manmeet Singh, vice-president of ISF, highlighted the resilience of IT staffing, noting that “the IT staffing segment delivered robust performance, achieving a strong 5.5% QoQ increase. This momentum, marked by a 12.3% YoY growth, underscores the non-cyclical nature of digital transformation demands”. He added that the expansion of GCCs and rising investments in AI, cloud, and digital services continue to power this segment.
Suchita Dutta, executive director of ISF, said the industry’s sustained growth reflected its key role in formal job creation. “Despite a challenging macroeconomic environment that slowed down hiring in key consumer-driven sectors, the staffing industry maintained positive growth quarter on quarter. Our members collectively added 91,500 new formal positions over the last year, while the total formal flexi workforce employed by ISF members reached 1.83 million by the end of Q1 FY26,” she said.
The ISF noted that the flexi staffing industry continues to play a vital role in expanding India’s formal employment base, even amid global uncertainty and domestic market adjustments.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
October 11, 2025, 15:56 IST
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