India’s flexi staffing sector grows 9.7% in FY25 despite global headwinds: ISF Report

India’s flexi staffing sector has register a healthy growth of 9.7 per cent year-on-year in FY25, a new report released on Tuesday said. 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 fiscal year. This took the total workforce employed by Indian Staffing Federation (ISF) members to 1.8 million by March 2025, according to the latest annual report released by ISF.

The report shows that the general flexi staffing segment witnessed a robust growth of 9.8 per cent in net new employment during the year, although there was a decline of 2.6 per cent in the fourth quarter (Q4) due to seasonal slowdown and global headwinds.

Key sectors such as FMCG, retail, e-commerce, logistics and energy contributed significantly 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 said staffing remains an important tool for companies to maintain efficiency while providing structured employment options.

The IT staffing segment also showed signs of recovery after a challenging three-year period post-Covid. The sector recorded a growth of 7.8 per cent year-on-year and a growth of 2.3 per cent in the fourth quarter alone.

ISF Vice President Manmeet Singh said this growth was supported by rising demand from Global Competence Centres (GCCs) and increasing project activities across services sectors.

Industries such as e-commerce, logistics, FMCG and manufacturing also contributed to this growth.

Singh said digital transformation across various sectors, increasing focus on cybersecurity, and adoption of emerging technologies such as AI have helped drive positive momentum in IT staffing.

Budget utilisation and closure of projects at the end of the financial year further increases the demand for technical professionals.

ISF Executive Director Suchita Dutta emphasised that the federation and its members are committed to increasing formal employment even during difficult economic times.

With the inputs of IANS