UBERISATION OF WORK: HOW TECHNOLOGY HELPS IN REVIVING THE AUTOMOTIVE INDUSTRY?

With the contract workforce's rapid penetration into specialised industries, especially in the sector such as automotive, the need to have a comprehensive guide on realising its potential has upsurged. The article delves deep on how technology can be vital in unlocking their potential and streamlining this disorganised workforce and company operations.

- Sumeet Doshi

Historically, India has been known for being a source of cheap labour workforce. It is only fair to acknowledge the part played by the Indian workforce in establishing the modern world. Centuries later, little has changed about the skilled Indian workforce, only that it has evolved in the current times to adapt itself to modern industries. One such industry that has been on the rise is the automotive industry. Despite facing unprecedented challenges, India is expected to be the third-largest automotive market by 2026.

In 2022, nearly 15 million people have been expected to be employed in the automobile sector directly in the industry. According to the Society of Indian Automobile Manufacturers (SIAM), the Indian automobile sector contributes 7.1 per cent to India’s overall GDP and 49 per cent to the manufacturing GDP. In addition to this, the sector is predicted to provide employment to 37 million employees, both directly and indirectly. The contract workforce makes up a significant component of the labour force in many nations. When coming to the Indian auto industry, the contract labour workforce is becoming more vital and preferable as a flexible, cost-effective resource that may help their critical business objectives.

ADDRESSING GAPS IN CONTRACT WORKFORCE MANAGEMENT THROUGH TECHNOLOGY 

According to the Annual Survey of Industries (ASI), there were 4.2 million contract workers in the industrial sector in 2016-17. This accounted for 36 per cent of all employees for the year. The automobile industry employs 8 per cent of the entire workforce across all industries. According to the government’s yearly survey statistics, contract workers make up about half of the auto industry’s workforce.