Tech-Powered Gig Economy: Connecting Skills, Income & Mobility

Gig industry has emerged as a transformative force, reshaping the dynamics of job opportunities and income generation. With the prowess of technology and digital platforms, the gig economy has gained prominence, particularly in countries like India, where addressing unemployment remains a critical challenge. Annanya Sarthak, co-founder and CEO of Awign, sheds light on the significant role gig work plays in providing viable avenues for employment and income generation. Sarthak also delves into the growth trajectory of gig work, the catalyzing impact of technology, and the transformative role it plays in connecting workers and employers.

In what ways can gig work serve as a viable avenue for employment and income generation, particularly for a country like India with a significant unemployed population?

India’s flourishing gig economy has the potential to impact 100mn+ unemployed individuals with meaningful employment opportunities. With a low entry barrier, the gig economy enables people of any skill level or educational background, across any part of the country, a platform to earn their income and uplift their social mobility. Today, gig platforms allow individuals to work from their own cities and home, reversing a long-standing trend of jobseekers moving to Tier 1 or metro cities to find decent employment opportunities. Between FY21 and FY22, gig workers across tier-1 cities have increased by 28 per cent, 65 per cent in tier-2 cities and almost a 90 per cent increase in the same time period in tier 3 cities. Gig workers can now work remotely across various lines of work to amplify their earnings and fulfill their aspirations. It also enables more women to rejoin the workforce which they may have left to fulfill their familial responsibilities. In the last two years, we observed a 3x increase in participation of women gig workers on our platforms. With potential to generate up to 90mn in the next decade, the gig economy will also enable these gig workers to make a contribution towards India’s economic growth.

Can you provide insights into the growth and prevalence of gig employment in recent years? What factors have contributed to its rise?

In the last few years, the propagation of smartphones, access to the internet and rise of tech-enabled gig platforms have enabled individuals to access employment opportunities in the gig economy which give them flexibility and autonomy. Individuals can now work with gig platforms to access meaningful and sustainable employment opportunities suited to their aspirations, without any barrier on location or timings. Concurrently, enterprises have been increasingly leveraging the gig model to delegate business functions on-demand and utilize the benefits of working with a gig workforce. Between March 2020 to March 2022 itself, we observed a 13X increase in demand for gigification coming from enterprises. By leveraging a gig workforce, enterprises can variabilize their fixed costs, ramp up/down as per requirement and stay agile in a competitive market environment. This growing enterprise demand for gig workers has opened up a wide avenue of employment opportunities for individuals across different skill sets.

How has technology, especially digital platforms, transformed the gig workers' industry? What role do these platforms play in connecting gig workers and employers?

Technology is addressing a significant challenge within the realm of human resources - discovery and management of workforce. With a large set of unemployed people in India, tech-driven platforms have made it possible to integrate unemployed individuals and job seekers from marginalized groups into the workforce by granting them access to flexible job options. Beyond just discovering potential talent, these tech platforms also facilitate workforce management. Without the right set of tech tools, human resources would be required to manually source, train and manage workers. Tech-enabled gig platforms find gig workers, match them with the right tasks, map the work they execute, manage them and ensure quality outcomes are generated. It enables platforms to allocate tasks to the gig workers based on their skill sets and provide assistance or guide them to effectively execute their tasks. The rise of these tech-enabled gig platforms ensures that an individual with any skill set, whether on low, mid-level or high, has access to employment opportunities and can earn an income to support themselves.

Are there any concerns regarding job security, benefits, and worker rights in the gig workers industry? How are these issues being addressed?  

Today, there are multiple gig platforms available for jobseekers to choose from and earn their living. While gig workers will continue to have multiple opportunities across different types of work, they do seek social security benefits such as health insurance and pensions that traditional employees have access to. Considering the rapid growth of India’s gig economy, the government is taking steps to implement the social security and welfare fund of gig workers to welcome more unemployed individuals in the workforce. Simultaneously, gig platforms also take measures at their organisational level to ensure a smooth working environment for gig workers. All stakeholders in the ecosystem, whether we talk about the government, gig platforms or enterprises are initiating action to create a healthy and beneficial ecosystem of gig workers to solve the challenge of unemployment India grapples with.

Can you discuss the legal and regulatory challenges surrounding gig employment? How are governments and organisations responding to these challenges?

Regulatory and legal challenges around gig work have emerged considering the unique nature of work and its ties with labour laws. These challenges include classification of workers, nature of employment, terms of payment and benefits gig workers can get access to. To address these challenges, the government has introduced a classification of “platform workers” to provide certain social security benefits to the workers. Initiatives such as Pradhan Mantri Shram Yogi Maandhan have also been introduced to provide additional benefits. The government is also working with digital platforms to ensure transparency, fair practices and conflict resolution mechanisms. At the same time, gig platforms are taking necessary steps to facilitate a hassle-free experience for their gig partners.