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How start-ups are creating a link between freelancers and brands?

How start-ups are creating a link between freelancers and brands?
February 09, 2023

This is the era of start-ups and freelancers, both sectors are growing tremendously and are increasing their presence in the Indian economic sector. But how does one see a link between start-ups and freelancers, in a way these two sectors have grown into each other over time and now fit perfectly.


Freelancers have created their sector and demand after the pandemic. As much as people have been moving towards the concept of working remotely there is also a huge shift in the need for freelancers in companies. This new age style of working where the employer or the employee is not responsible for each other and simply correlates when it comes to taking up a project has been a generational revolution in many ways!


Start-ups on the other hand have been discussed all over the world. People started hearing the term start-ups a few years ago and then some revolutionary start-ups came into the picture as well. Start-ups like Uber are now everyone’s basic need, remember there was a time you couldn’t book a cab on your phone and it arrived within minutes? It feels like it has been ages since this happened yet, Uber only became official in 2010. 


While the world is on a growth curve, this young generation has tilted the path of growth and development a tad bit according to their comfort. Working in the age-old MNCs and following the typical work culture has now been revolted. Start-ups operate in a more chilled manner and have started hiring more and more flexible workers. Here is taking a look at the broader role inter-relations played in the growth of both of these industries. 


Why do Start-ups Hire Freelancers?


The business model on which start-ups operates is minimum input with maximum output at the base level. While this is easier done than said, cost-cutting is applied at all the different levels of start-ups. Many start-ups these days work only remotely, making sure that they completely cut costs on the infrastructure or if need be they work in co-working spaces now available all over the globe. 


While all other ways of cost-cutting methods keep evolving based on need, working with contract-based employees for certain assignments and roles is a fixed method. Certain roles that are only required at certain points in the financial year are converted into outsourcing projects. This helps the companies cut costs and simply avoid the possibility of investing in a large number of long-term employees. Such techniques have made start-ups the biggest hiring industry for freelancers, at the same time we see many people opting for contract jobs online and choosing no longer be limited to permanent employment jobs. 


India’s Gig Sector


When the question is asked, “how to hire contract resources” only a few know the answer. As much as start-ups prefer to hire freelancers if they had to sit and hire every person and make them work together on different projects this would cost much higher than the usual expenses of the permanent employee. The key to hiring freelancers is the contract resource provider companies who source a bunch of contract-based employees who further take care of the assignment and projects required by the people. India's gig sector is driven by the companies which provide resources, which is now turning into an industry sector itself. 


India is slowly turning into a gig economy, and many may not accept the nature of the gig economy but the younger generation is here to rebel no matter what. After the advent of the gig-style work culture, several flexi recruitment services came into the picture. Companies pair up with these service providers and hire freelancers, hassle-free. 


Bridging Gaps, One Industry at a Time


Now we know the answer to the bigger questions as to why start-ups hire freelancers or how the hiring process takes place. We also need to look into the practical results and what statistics currently create the market dynamics.


Here is what the market structure for start-ups and freelancers, looks like in India:


  1. Freelance Growth in India: India has now acquired the seventh position in the list of countries providing freelance work. While a bunch of our population has been working in Indian start-ups, many growing businesses from around the world have started considering India as a hub for freelance hiring. Our younger population believes in the hustle and building an overall growth-centered lifestyle. This has pushed the new age generation to add in extra efforts right from the beginning of their careers.
  2. Flexi Staffing: Indian-based contract services providers like Gig India and many other similar model companies have started gaining investment and are on a successful path of growth. This growth will impact the start-up industry and the freelance industry while gaining profits from all industry sectors. The gap is bridged between all the industries in one go.
  3. Layoffs: India’s economic sector is shortly moving towards a more freelance lifestyle work culture after the advent of layoffs in the Indian market. Lay-offs are now one of the prominent reasons behind the recent push to the start-up economy. Where the brands will prefer hiring freelancers and also work with start-ups for other services to cut costs in the best possible manner. While they come with many drawbacks, layoffs might give our economy a new shape and structure.


Freelance Start-ups


Even when many had thought of moving on to a freelance job structure, the question of how and why kind of pushed a step back. While many freelancers manage themselves without any third-party involvement, many need support since the services they provide cannot be done solely. To tackle problems like these freelance start-ups which aim to provide contract-based employees for a section of the project, came into the picture. So to put it in the right manner, these are start-ups that facilitate start-ups to hire freelancers. 


The trends and changes might be considered step one of growth and development. Our country is currently adapting to the new age work culture and everything that follows is all set to impact the larger conglomerates, start-ups, and employees.

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