India's formal flexi staffing workforce reached 1.95 million in Q1FY27, representing a 2.6% sequential growth in the April-June quarter of 2026, according to the latest quarterly report by the Indian Staffing Federation (ISF). The formal flexi staffing workforce grew 7.5% year-on-year, with 1.14 lakh formal jobs added over the past year. This growth indicates a gradual recovery in hiring after a softer previous quarter, as reported by the Indian Staffing Federation. The report was based on a quarterly survey of more than 120 ISF member staffing companies across 15 sectors, with inputs collected through primary email surveys over 60 days.
Manufacturing emerged as the largest volume driver, with production, manufacturing and engineering hiring rising 14% in June. The report highlighted particularly strong demand for workers in auto components, electrical and electronics assembly, and food processing sectors. E-commerce, quick commerce, logistics and road transport also emerged among the stronger demand sectors, despite the period falling outside the usual festive-season hiring cycle. Healthcare, pharma and life sciences were among the fastest-growing job functions, with hiring rising 22% in June. The report noted that demand was also emerging for AI-adjacent specialist roles such as large language model operations, prompt engineering and AI quality assurance, while cybersecurity and compliance hiring accelerated amid new regulatory requirements.
Within financial services, hiring shifted away from banks towards insurers, non-banking financial companies and fintech firms. Insurance hiring rose 16% in June, while banking hiring fell 15% in May. Among fresher roles, relationship manager hiring increased 75% and loan officer hiring 62%. The report noted that BFSI faced regulatory headwinds on what can be outsourced, though NBFCs and fintechs still offer openings. IT staffing grew 2% sequentially and 7% year-on-year in the quarter, with AI and machine learning roles growing 25% year-on-year in June even as overall IT hiring fell 3%.
Specialized staffing headcount increased 13% year-on-year, with global capability centres accounting for 71% of professional staffing headcount. Hiring by foreign multinationals in BPO and IT-enabled services rose 54% in June, while BPO/ITES fresher hiring increased 28% in May. The report noted that GCCs now account for 45-67% of its specialized staffing associates and revenue, with GCC hiring holding up for several consecutive quarters, indicating a structural trend rather than a cyclical one. The report emphasized that manufacturing and consumer sectors are now the volume engine, while BFSI is cooling, with general staffing growth this quarter coming mainly from manufacturing and the consumer/retail/telecom verticals.
