E-commerce And Tech Startups Reshape Workforce Models: Report
This model ensures scalability, enabling businesses to address varying levels of demand efficiently
E-commerce and tech startups are at the forefront of a workforce revolution, redefining agility and innovation in response to dynamic market demands. According to the EOR H2 report (October–March FY25), 89% of e-commerce companies have adopted hybrid staffing models, blending permanent and temporary workforces to stay flexible amidst fluctuating requirements. This approach, combined with AI-powered strategies and a strong focus on talent retention, is reshaping the future of work in these industries.
The e-commerce sector has been a trailblazer, leveraging hybrid staffing to navigate operational complexities. This model ensures scalability, enabling businesses to address varying levels of demand efficiently. Meanwhile, e-commerce and tech startups are driving growth with 73% planning workforce expansions, signaling a net employment change of 8.9%. This surge is fueled by advancements in AI, the rise of Web 3.0 applications, and the increasing adoption of direct-to-consumer (D2C) models.
AI has emerged as a cornerstone of these industries' strategies. E-commerce firms are deploying real-time inventory management systems, predictive analytics, and automation to optimize supply chains and enhance customer experiences. E-commerce and Tech startups, on the other hand, are leveraging AI-powered customer insights and product innovations, driving demand for specialised roles like full-stack engineers and cloud architects, essential for creating seamless digital ecosystems.
Employee retention has also taken centre stage. With 88% of e-commerce firms intensifying their focus on targeted incentives, recognition programs, and career development opportunities, companies are prioritizing a motivated and stable workforce to sustain operations and fuel growth.
The report also underscores the geographical distribution of job creation, with Bengaluru (61%) and Chennai (59%) continuing to lead, while Pune (21%) emerges as an up-and-coming hub for tech talent.
Despite Progress, gender disparity, the need for upskilling, and formalisation remain pressing issues. Companies are addressing these through strategic investments in human capital and inclusive policies, laying the groundwork for a future-ready workforce.
Balasubramanian A, Senior VP and Business Head at TeamLease adds, "The shift toward hybrid staffing models, coupled with technological advancements, underscores the resilience and adaptability of e-commerce and tech startups. These industries are not just meeting the demands of today but are building the workforce of the future. As we embrace this transformative phase, focusing on talent retention, inclusion, and upskilling will be key to sustained growth and innovation."
The EOR H2 report shows an evolving landscape. Adaptability, innovation, and investment in human capital are crucial for shaping the future workforce. As e-commerce and tech startups continue to break new ground, their strategies are shaping the future of work, driving growth, and unlocking opportunities across the nation.
