Freelancing in tech? Yes, go for it!
Tech freelancing is experiencing a boom and this is driven by both the supply side and the demand side. Below I share some trends that are shaping the way tech talent works and gets hired.
Historically it was the freelancers who made significant contribution to the world of tech — Alfred Nobel and Nikola Tesla were two such leaders. However much of the modern tech innovation is now being driven by organisations (Google, Apple, MSFT, OpenAI etc). However with there are many trends which point to a rise in freelancing in tech and this is underlined by the employment numbers.
Domain of tradition freelancing has historically been limited to work such as Writing and Translation, Design and Creative however this has been overtaken by the software and mobile development jobs.
Future talent is increasingly exploring freelancing: In 2022, 43% of all Gen Z professionals and 46% of all Millennial professionals performed freelance work. [Source]. This trend is strong for tech talent too.
Tech talent is in a state of flux
Unhappiness among the new-age tech talent is increasingly driving them to think beyond the traditional models of working. This trend is accelerated by the pandemic and the subsequent layoffs done by some of the large tech companies. Flexibility is now becoming a key factor in determining how the tech talent will work in the future.
Dissatisfaction among the entry level development talent
There are talks of unionising among the tech talent in India after growing unhappiness within the current IT sector employers. Lack of salary increase is one of the reasons why this movement is gathering steam.Entry level IT salaries have not increased in the last decade. Wipro slashed their entry level salary from 6.5L to 3.5L [Source]. Similar trends of unionising has been seen in the US with the employees of Google.
Pandemic + Layoffs supercharged the gig economy
India witnessed a whopping 46% increase in new freelancers from Q1 to Q2 in 2020 as many laid-off workers and employees took to freelancing to generate higher income and many have continued to work as gig workers. This trend is seen across the tech talent globally with workers preferring to work independently.
Flexibility is a key factor in workers choosing their work
Ability to set their own time and choose their work is becoming increasingly important for tech talent. Many workers aspire to keep up with the changing technology landscape and having the ability to choose their own projects allows them to upgrade their skills and get paid for it.
Tech gig workers are increasingly in demand
With both SMBs and Large companies increasingly looking to hire gig workers for tech roles
Tech roles offer a great opportunity for companies to hire freelance tech talent
Tech roles are relatively modular which makes they highly giggable. According to the NASSCOM report DevOps, QA, UI/UX, Software Development are some of the most prominent roles for which companies can leverage gig tech talent
SMBs are increasingly going online
- SMBs need help in getting their business online but cannot afford to have FT staff on their payrolls (as they have to provide social security benefits
- Providing a cost-effective and flexible solution, freelancers are helping SMBs achieve their growth plans. SMBs are happy with freelancers and are looking to increase their use of freelancers in the future. According to LinkedIn — 70% of SMBs in the U.S. have hired a freelancer in the past
Large companies are leveraging gig workers to meet talent shortfall
Tech companies have have resorted to layoff to cut costs however the demand for tech remains strong. Companies need to keep the lights on in the server rooms. Hiring contract or gig workers is way to meet the shortfall while keeping the costs in cheque. About 4 in 10 companies that recently laid off workers are hiring contractors to replace them according to a January survey of about 1,000 U.S. business leaders by ResumeBuilder.
Similarly in India the appetite for freelance tech talent remains strong with
- Nearly two-thirds (65%) of IT companies in India are employing gig workers this year, a higher share compared to 57% of the organisations in 2020 according to NASSCOM [Source]
- 46% of organizations surveyed planning to increase the proportion of gig workers from current levels
Conclusion
In the next few years, there will be greater movement of high-skill tech talent towards the gig economy. Liberalisation of labour laws, implementation of social security along with non-monetary benefits from platforms will further boost the participation of tech talent in the gig economy, boost employability along with economic growth
That being said the challenge of integrating the gig workforce with the company culture will remain. It will be interesting to see how the companies navigate through this.
Are you seeing this trend play out?, share your thoughts with me on LN — Amatya Agarwal
