Approximately 50% of Indian firms are leaning towards contract hiring due to the expected downward market slump amidst mass layoffs, reports India Today, citing research from Spectrum Talent Management. Businesses do not have the bandwidth to increase their fixed costs by hiring FTEs (full-time employees), according to the research. The current demand is hence met by the people readily available via layoffs. Contract staffing has emerged as a viable short-term staffing solution. Although this is not a long-term fix for the slowdown, it settles the situation, Spectrum stated. 

The states of Maharashtra, Tamil Nadu, Karnataka, Andhra Pradesh, Odisha, and Rajasthan have witnessed the highest demand for contractual staffing. Compared to last year, the demand range has a variance of 10%. The demand is higher in FMCG (fast-moving consumer goods), followed by sectors like e-commerce, manufacturing, retail, logistics and healthcare. IT is yet to catch up in India as compared to other developed nations, the research added.