A gig economy is a free market structure in which temporary positions are widespread, and organizations employ independent workers for short-term commitments.The gig economy is fragmented and spans a wide diversity of workers such as independent contributors, freelancers, self-employed, and part-time workers. This chapter deliberates on the major factors that influence the gig economy from a multi-stakeholder perspective (e.g., employers/organizations, gig workers, customers, and economy). The study explores the various common factors such as globalization, digitalization, technological change, financial pressures, and emerging competition including other factors about different stakeholders who are influencing the gig economy, thereby propelling the entry of the next generation of workers in this system. Pandemic due to covid-19 has made survival even harder for gig workers. The chapter also discusses the challenges from different aspects of all stakeholders with due consideration of Industry 4.0 in detail.
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21st Century is marked by digital revolution, center of which is the giant economy alongside artificial intelligence and algorithms. The labor pool of the 21st century is characterized by the cooperation between man and technology, the result of which is a high degree of wellness for all nations. It is to be noted that, what unites us globally is the economy, not politics or governments, and the gig economy anticipates the potential impact of industrialization and the beneficial potential it might bring. With rapid technological advancements such as artificial intelligence, the development of robotics, and the resulting automation, great transformation can be observed in the country's job market. Full-time and tenure-based employment are being considered lucrative as more people acquire multiple streams of income from various jobs while also shifting between different industries throughout their working life.
An economy based on performing tasks and projects, increasingly through digital platforms, and replacing regular full-time employment is defined as a gig economy (Wood et al, 2019). In other words, it can be defined as a system where the workforce primarily works on short-term contracts and engages in freelance assignments. Gig economy is characterised with flexible industry dynamics such as temporary, freelance jobs, connecting clients and service providers through an online platform. Arrangements where short-term contracts, independent jobs, and freelance assignments are commonplace, and organizations intend to hire independent employees predominantly on contracts and freelancers instead of full-time workers constitute a gig economy. Freelancers or more broadly, gig workers, use this form of employment willingly due to lack of full-time job offers. The challenges that this revolutionary advancement towards gig economy can be transformed into opportunities, but it requires creativity and a correct mindset of the human capital to maximize the benefits of the revolution and minimize potential threats.
The idea of work is transforming future employment and business along the same lines. Advancement in technology with the international supply chain has also reformed the system of manufacturing, retail, service, and workforce. Remote online working jobs are easily accessible to workforce of developing countries. Infact, the traditional working model has changed to on demand working which is managed through apps and runs on demand and supply. In India, cab drivers, online beauty, carpentry, cleaning, transport are some of the services that can be availed on demand. (Chaudhary, Mitra, & CeMIS, 2019, November). Example Swiggy,Zomato,Dunzo,Urbanclap,Ola,uber,Dunzo.
The growth of online media platforms has given rise to the phenomenon of the gig economy. A new monetary model that holds various of forms of short-term service is propagating across all corners of the world, becoming a day in day out need changing the employment market. The new gig economy has adapted to new measures creating opportunities for alternative employment. (Banik & Padalkar, 2021)
Covid-19 pandemic has transformed the trade function as numerous businesses have taken the advantage of the digital mode rather than relying on cash. According to the ASSOCHAM, Gig economy in India is expected to rise to US$455 billion with 17% increase in CAGR by the year 2024.
At present, India has approximately15 million freelance jobs in software, human resource, and designing plans. India’s workforce is rising by ~4 million every year. As most youth prefer gig contracts, it is expected that the market of jobs for freelancers and gig workers will be greatly impacted in short term. Start ups in IT, data science machine learning domains are looking to hire freelancer’s on hourly basis giving strength to the tech industry.