Why Do Most Freelance Jobs Come from Foreign Countries?

Why Do Most Freelance Jobs Come from Foreign Countries?

Sunaina Kumar, a Mumbai-based homemaker, was an early entrant into the world of freelancing.

“I started as a graphic designer and then went on to become a technical content writer. As a gig worker, most of my projects were from companies based abroad. Initially I was surprised but I realised that there are several reasons why I was getting more work from foreign clients than from Indian companies,” says Kumar.

Here is why more freelance jobs originate in the West than in India. 

Cost effectiveness: For foreign companies, hiring gig worker such as Kumar was way cheaper than hiring a freelancer in their countries due to wage differential. Plus, the world of gig economy is not very structured here and so foreign companies could negotiate better rates. The currency conversion rate made it lucrative for freelancers based in India to work with foreign companies.

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Language: Since English is the most preferred language in these platforms, foreign clients look out for workers who are proficient in the language. Unsurprisingly, Indian workers are preferred.

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Established business practice: Unlike the East, the West has already had a mind shift when it comes to freelancers or gig economy workers. They are accepted as a legitimate workforce and, therefore, companies find it easier to hire them.

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Steady established channel: Most Indian freelancers are hired from the United States, United Kingdom, Australia, and Canada. Majority if these freelancers belong to Bengaluru, Hyderabad, Pune, Chennai, New Delhi and Mumbai.

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Demand-supply gap: Employers often complain that there are not enough skilled workers.

Hiring a gig worker at a cheaper rate from developing countries for a particular project makes sense for foreign companies.

However, in the coming years, there is going to be a sea change in the situation in India, with more and more companies as well as the government are willing to hire freelancers, and many people also willing to leave their full-time jobs to join the gig economy.

This has been brought about by the COVID-19 pandemic, which hastened a paradigm shift visible in the business market from the traditional in-office work culture to the work from

home culture (International Labour Organisation report) because of the lockdowns, and so more and more Indian companies are also expected to get freelancers on board.

Already, the International Labour Organisation report added, there has been a significant growth of freelancing in India, especially among the 20-29 year olds. This is because the work-from-home culture during the pandemic allowed showed that productivity is possible even from home. It also gave a sense of ownership and creative freedom to the employees and freelancers.

“I have worked for 25 years and has established an ecosystem of my own. I am willing to join the gig economy now because it will give me operational flexibility and much more time on my hand. I am done with tied-to-the-post jobs,” explains Radhakrishna, an HR professional.

The explosion in the gig economy market has been also due to the exponential rise in internet penetration, digital boom, and the advent of new and disruptive technologies have influenced the mode of work in India.

“One of the major reasons for a rise in freelance industry in India could be the low pay scale for regular jobs,” says Matt Barrie of Freelancer.com. India stands second in terms of freelancing marketplace, after the US. Interestingly, however, while the gig economy attracts professionals of all ages in the US, in other markets, it tends to skew toward younger generations, who may be more technically minded or used to less formal work structures, according to digital payments platform Payoneer.

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