Flexi staffing grows 6.1 pc in Q1 FY26, IT segment leads with 12.3 pc growth
India’s flexi staffing industry grew 6.1 per cent year-on-year in Q1 FY26, driven by robust IT staffing performance, according to a report on Tuesday.
The overall flexi staffing industry witnessed a quarter-on-quarter growth of 1.5 per cent in Q1 FY26 compared to Q4 FY25. The general flexi segment, excluding IT, grew by 1.4 per cent QoQ, said the report from the Indian Staffing Federation.
While demand from key sectors such as FMCG, e-commerce, retail, logistics, and manufacturing continued to drive employment, the pace was tempered by a period of consolidation and delayed hiring decisions, the industry body added.
The IT flexi staffing industry delivered a standout performance, recording a robust QoQ growth of 5.5 per cent and an impressive 12.3 per cent YoY increase, the report noted.
The robust growth signalled a strong revival in specialised technology needs, driven by strong demand for AI, cloud, and digital services, along with the growth of Global Capability Centres (GCCs).
“Q1 FY26 indicates the changing face of formal employment growth, evidenced by a deceleration in flexi employment growth to 6.1 per cent YoY — the slowest Q1 pace since the 2020 pandemic. This moderation is primarily attributed to challenging economic conditions and reduced consumer spending, which constrained overall hiring numbers,” said Lohit Bhatia, President, Indian Staffing Federation.
The IT staffing segment delivered robust performance, achieving a strong 5.5 per cent QoQ increase. This momentum, marked by a 12.3 per cent YoY growth, underscores the non-cyclical nature of digital transformation demands, said Manmeet Singh, Vice President, Indian Staffing Federation (ISF).
ISF informed that its members created 91,500 formal positions in the last year, bringing the total formal flexi workforce employed by members to approximately 1.83 million by the end of Q1 FY26.
