India’s flexi staffing sector has recorded a healthy 9.7 per cent year-on-year (YoY) growth in FY25, a new report said on Tuesday.
Despite global uncertainties, trade wars and a cautious hiring environment in the last quarter, the sector added 1.39 lakh new formal flexi workers in the financial year, taking the total workforce employed by Indian Staffing Federation (ISF) members to 1.8 million as of March 2025, according to the latest annual report released by the ISF.
The report shows that the general flexi staffing segment saw a strong 9.8 per cent increase in net new employment over the year, even though there was a 2.6 per cent dip in the fourth quarter (Q4) due to seasonal slowdown and global headwinds.
Key sectors like FMCG, retail, e-commerce, logistics, and energy were the major contributors to this annual growth.
Commenting on the findings, ISF President Lohit Bhatia said that despite economic pressures caused by global events and changes in India’s banking system, the staffing industry has continued to create formal job opportunities, especially for freshers and first-time job seekers.
He noted that staffing remains a critical tool for companies to maintain efficiency while offering structured employment options.
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The IT staffing segment also showed signs of recovery after a challenging three-year period post-Covid.
The sector reported a 7.8 per cent YoY growth and a 2.3 per cent rise in Q4 alone.
Manmeet Singh, Vice President of ISF, explained that this growth was supported by rising demand from Global Capability Centres (GCCs) and increasing project activities in service sectors.
Industries such as e-commerce, logistics, FMCG and manufacturing also contributed to this growth.
Singh added that digital transformation across sectors, growing focus on cybersecurity, and increasing adoption of emerging technologies like AI helped drive the positive momentum in IT staffing.
Budget utilisation and project closures towards the end of the fiscal year further boosted the demand for tech professionals.
ISF’s Executive Director Suchita Dutta emphasised that the Federation and its members remain committed to increasing formal employment even in tough economic times.
