The Flexi staffing sector is expected to reach a staggering 2,580,000 million rupees by the fiscal year 27.
A new report by the Indian Staffing Federation (ISF), titled 'Indian Flexi Staffing Industry 2025', has highlighted the industry's impressive growth trajectory. The report, published on September 18, 2025, projects the flexi staffing industry to reach ₹2,58,000 crore ($24 billion) by FY27, growing at a Compound Annual Growth Rate (CAGR) of 17.3%.
The report indicates a significant shift in the geographical distribution of the industry, with an encouraging move towards tier-2 and tier-3 cities like Coimbatore, Mysuru, Salem, Hosur, Indore, Bhopal, Kanpur, Surat, and Vadodara.
The growth of the industry is seen as a cornerstone of India's economic development, according to Lohit Bhatia, President of the Indian Staffing Federation. Sectors like IT, retail, and healthcare are enabling this inclusive growth by offering flexible and recognized employment opportunities.
Among these sectors, e-commerce has shown the most explosive growth, with an average annual growth rate of 19.6% over the past five years. The fintech sector is also emerging as a significant contributor to flexi hiring, driven by the need for agile and skilled talent.
The top three sectors for formal contract staffing are logistics, Banking, Financial Services, and Insurance (BFSI), and manufacturing, accounting for 38% of the total formal contract workforce. Twelve core sectors, including IT, ITeS, retail, infrastructure, and education, contribute to 80% of flexi staffing demand.
The formal flexi workforce in India grew at a CAGR of 8.7% between FY23 and FY25, reaching 7.2 million workers by FY25. Women account for 26% of the formal flexi workforce, reflecting a slow but positive shift in gender participation within non-traditional work formats.
The report suggests that the formal flexi staffing industry could formalize the gig economy, provide skilling opportunities, and extend social security to millions. The growth of the industry is particularly popular among young professionals, with 71% of job seekers under the age of 30.
Around 55% of the workforce is concentrated in five key states: Maharashtra, Karnataka, Uttar Pradesh, Tamil Nadu, and Telangana. The author of the report is not publicly disclosed. The report also indicates that the industry now constitutes 1.3% of the country's total workforce, making India the third-largest flexi staffing market globally.
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