Index

1. Introduction 
2. The Rise Of The Gig Economy In India Amidst COVID-19
3. Rajasthan Introduces Landmark Gig Worker Bill and Tech Mahindra Launches ‘Populii’ Platform
4. Reasons Behind The Rising Popularity Of Freelancing And Gig Work
5. The Downsides Of Freelancing And Gig Work
6. Exploring Opportunities In Freelancing And Gig Work
7. Challenges Of Freelancing And Gig Work In Corporate Settings
8. Conclusion

Introduction 

Freelancing involves undertaking specific tasks for one or multiple clients, either part-time or full-time, without committing to a permanent employment arrangement. Unlike traditional full-time jobs where an employee receives an ‘appointment letter’ upon joining an organisation, freelancers agree on the terms and conditions of their work with their clients and document these in a contract valid for a specific period.

Based on the assignment and the agreed terms, freelancers may be paid hourly, weekly, bi-weekly, or monthly. In some instances, payment is made only after the completion of the project or task.

Freelancing is common in fields such as recruitment, teaching, designing/web-designing or graphic design, marketing, copywriting, photography, data entry, proofreading, writing, and search engine optimization (SEO).

The gig economy is characterised by freelance jobs, short-term assignments, and temporary or part-time work that individuals take up on a contractual basis.

Those who perform such jobs are known as “gig workers.” The terms “freelancers” and “gig workers” are often used interchangeably.

The Rise Of The Gig Economy In India Amidst COVID-19

Tracing the exact origins of the gig economy in India is challenging. However, the COVID-19 pandemic in 2020 significantly boosted the credibility of freelance work, part-time jobs, contractual positions, and short-term assignments, both in India and globally. The pandemic severely impacted the sales and operations of large multinational companies, leading to increased manpower and operational costs that diminished profitability.

According to a report in ‘The Hindu’ on May 7, 2020, approximately 122 million Indians lost their jobs due to the lockdown in April 2020. Globally, this number reached 114 million in 2020.

The impact of job losses during the pandemic was felt globally, not just in India. According to the International Labour Organisation (ILO), the pandemic led to an unprecedented 114 million people losing their jobs worldwide in 2020. This widespread unemployment had significant repercussions for individuals, families, and societies across the globe.

The reasons behind this massive job loss are complex. Lockdown measures, implemented to curb the spread of the virus, forced businesses and industries to shut down across various sectors, leading to a steep decline in economic activity and a corresponding drop in labour demand. Additionally, travel restrictions and supply chain disruptions further worsened the employment crisis.

The effect of job losses on individuals and families has been severe. Many have struggled with financial hardships and uncertainty about their future. The loss of income has also impacted consumer spending, further affecting businesses and the economy.

Governments worldwide have introduced various measures to address the unemployment crisis caused by the pandemic, including financial assistance programs, wage subsidies, and support for businesses to retain workers. However, recovery remains a long and challenging process, with many people still facing unemployment and economic insecurity.

As societies continue to navigate the challenges of the pandemic, addressing unemployment and supporting those affected remains a critical priority. The economic fallout from the coronavirus lockdown highlights the need for resilient and inclusive labour markets capable of withstanding future crises.

The ILO estimated that the working hours lost in 2020 were equivalent to 255 million full-time jobs, resulting in $3.7 trillion in lost labour income.

These events have caused a fundamental shift in how organisations operate, regardless of their size or business nature.

The concept of ‘Work from Home,’ previously common mainly in the IT sector, has now become the ‘new normal.’ Before COVID-19, many organisations resisted this idea, believing it reduced employee productivity. However, to keep their businesses running during the pandemic, employers had no choice but to adopt remote work practices.

On one hand, employers recognized the benefits of employees working from home, including reduced manpower and operational costs. On the other hand, multi-skilling and up-skilling became essential strategies for the workforce to prepare for future uncertainties.

Those who lost their jobs during COVID had no choice but to seek employment outside their areas of expertise.

The second wave of COVID in 2021 was more severe than the first, resulting in more job losses and pay cuts. However, it strengthened the belief in the work-from-home concept adopted during the first wave. Simultaneously, freelancing, contractual/part-time jobs, and project-based assignments emerged as viable income sources.

By the end of 2021, as COVID restrictions began to ease globally, things started to return to normal. Employees resumed working from offices, and recruitment across sectors increased.

The saying “Necessity is the mother of invention” holds true here. The Work From Home (WFH) practice, initially a necessity during the pandemic, became a popular and sought-after option in the labour market. Employers also saw the benefits of continuing WFH for certain departments, particularly those not requiring regular interaction with external stakeholders.

This shift led to the emergence of two new work models across industries:

1. Work from Home (WFH)
2. The Hybrid Model

In the hybrid model, employees have the flexibility to work from home on certain days and from the office (WFO) on others, based on organisational needs.

Currently, there is an increase in the number of freelancers, part-time workers, and professionals taking on short-term or project-based assignments. Organisations are now specifying the work model (WFO, WFH, or hybrid) in their job advertisements. The gig economy has firmly established itself in the HR practices of many organisations.

Rajasthan Introduces Landmark Gig Worker Bill and Tech Mahindra Launches ‘Populii’ Platform

In October 2023, the Rajasthan government unveiled the draft ‘Rajasthan Platform Based Gig Workers’ (Registration and Welfare) Bill, 2023, a pioneering legislation in India aimed at establishing social security and welfare measures for gig workers. The government also sought feedback from stakeholders, including the state’s approximately 300,000 gig workers, until July 7.

According to a press release in Hindustan Times (HT), the demand for a legal framework is echoed by India’s 7.7 million gig workers, a number expected to rise to 23.4 million by 2030. Gig workers, often labelled by companies as ‘partners’ in an ‘economic revolution,’ frequently face unregulated hours, inadequate wages, lack of social security, and instances of discrimination and harassment from both companies and customers.

On December 14, 2023, the business section of Hindustan Times reported the launch of ‘Populii’ by Tech Mahindra on December 13, 2023. ‘Populii’ is a crowdsourcing platform designed to connect gig workers with leading organisations for micro jobs that require ‘human in the loop’ services.

The platform will offer gig jobs such as content rating, data collection, data transcription, and data annotation across multiple data types. It aims to create flexible work opportunities for the gig workforce while providing businesses with reliable data from trained and qualified candidates to enhance competitive artificial intelligence (AI) algorithms. ‘Populii’ is intended to connect businesses with a broad network of experts, innovators, and problem solvers from various backgrounds and industries. Built on the principles of open innovation and shared expertise, the platform empowers businesses to address complex challenges, accelerate growth, and drive digital transformation.

Through Populii, businesses can post specific challenges, problems, or requests for proposals, inviting the global community to contribute unique insights, ideas, and solutions. This collaborative approach harnesses the collective intelligence of the crowd, allowing organisations to access a wider range of expertise, perspectives, and innovative thinking.

For individuals, Populii provides an exciting opportunity to showcase their skills, tackle real-world problems, and contribute to innovative projects. By participating in challenges, individuals can gain recognition, rewards, and the chance to collaborate with leading companies on cutting-edge initiatives.

The launch of Populii has been met with great enthusiasm from both the business community and tech enthusiasts. Tech Mahindra’s vision of fostering a global innovation ecosystem aligns perfectly with the evolving demands of the digital age, where collaboration and knowledge sharing are key drivers of success.

Reasons Behind The Rising Popularity Of Freelancing And Gig Work

The growing popularity of freelancing and gig work can be attributed to several factors:

1. Flexibility: The primary advantage of freelancing and gig work is the flexibility it offers regarding the place, time, and type of work. Freelancers can choose their clients and projects, which helps maintain a healthy work-life balance.
2. Control: Gig workers have complete control over their workload, allowing them to decide how much work to take on at any given time.
3. Exposure: Working with various organisations and brands across different geographies provides freelancers with significant exposure, potentially leading to meaningful business relationships worldwide. Such diverse experiences are often not possible when working for a single organisation.
4. Improved Skill Set: Engaging with different clients and projects enhances existing skills and may also help freelancers acquire new ones.
5. Setting Your Own Rates: Freelancers are their own bosses, enabling them to set and decide their rates or remuneration based on the amount of work they can handle within a certain period.

The Downsides Of Freelancing And Gig Work

The following points highlight the drawbacks of freelancing and gig work:

1. No Job Security and Stability: Unlike full-time employment, freelancers lack job security and stability. There is no guarantee of job continuity or assurance that the freelancer will receive more work or projects from the same client in the future.
2. No Employer-Funded Benefits: Freelancers and gig workers do not receive employee benefits such as medical and accidental insurance or paid leave, which are typically provided in most full-time jobs.
3. Isolation: Freelancing can lead to feelings of loneliness and demotivation due to the absence of a team and colleagues. Freelancers must rely entirely on self-motivation to stay productive.
4. Payment Delays: One of the biggest challenges for freelancers is dealing with payment delays or shortfalls in remuneration without valid reasons. This often results in wasted time following up with clients and can lead to demotivation and frustration.
5. Administrative Responsibilities: Freelancers must handle all administrative tasks themselves, including invoicing, taxation, and marketing, as they typically work in isolation.

Exploring Opportunities In Freelancing And Gig Work

Gig workers can handle multiple projects for different clients simultaneously, maximising their earning potential and diversifying their experience. Whereas, Freelancing provides a valuable opportunity for students to earn income while gaining practical experience related to their field of study, giving them a competitive advantage in the job market upon graduation. Freelancers have the chance to apply theoretical knowledge gained from education to real-world projects, enhancing their practical skills and industry understanding.

Additionally, Freelancing is open to individuals of all ages, as long as they possess the required knowledge and skills for their chosen assignments. It offers professionals, particularly women on career breaks or sabbaticals, a way to stay connected to their industry and maintain skills while having flexibility and autonomy in their work arrangements.

Challenges Of Freelancing And Gig Work In Corporate Settings

1. Breach of Confidentiality: Engaging freelancers and gig workers poses a risk of leaking sensitive information, potentially leading to misuse by these individuals or their connections, including competitors.
2. Reduced Organisational Commitment: Freelancers, due to limited interaction and absence of long-term commitment, may not demonstrate the same level of loyalty and dedication as regular employees.
3. Reliability Concerns: The temporary nature of freelancing and gig work raises doubts about the reliability of these individuals, especially regarding continued support and services post-contract.
4. Accountability Issues: Holding freelancers accountable for incomplete or substandard work can be challenging, with limited recourse beyond withholding payment or not renewing contracts, leaving the onus of subpar outcomes on the organisation.

Conclusion

Freelancing and gig work, like any employment model, come with their own set of advantages and disadvantages. The significant growth of this sector in recent years has prompted governments to consider implementing specific regulations for gig workers, with Rajasthan’s government in India being among the first to make such strides.

While freelancing and gig work have carved out a niche in the labour market, they are still in their early stages of development. There is a considerable amount of groundwork yet to be laid. A crucial step forward involves establishing a comprehensive set of rules and regulations that govern both gig workers and the employers offering such opportunities. Only then it is possible to fully harness the potential benefits of freelancing and gig work.