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Money flowing into outsourcing companies grew 26.77% in the last nine months while hiring of full-time employees dipped 17.23%, according to RazorpayX Payroll, the business banking platform of Razorpay.

Demand for outsourcing companies in technology increased by 14.14%, while sales and marketing, and logistics and operations, saw a rise in demand of 10.74% and 6.71%, respectively.

These findings are based on the analysis of the payroll data of 30,000+ employees, from April to December 2023, across 20+ sectors using RazorpayX Payroll.

“This reflects the significant shift of startups towards specialised outsourcing firms catering to their respective niches. Interestingly, this growth doesn’t extend to individual contract workers as their salaries only saw a marginal increase of 0.22%,” said RazorpayX Payroll’s insights.

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Commenting on the trends, Ayush Bansal, VP and General Manager, RazorpayX said, “The data from the RazorpayX Payroll platform reflects a growing inclination among startups and enterprises towards outsourcing services. This strategic shift aims at enhancing efficiency, fostering a balanced approach to effective capital utilisation, and paving the way for future building blocks of the company through innovation.”

Hiring for top-level executives or CXOs declined sharply by 25%. The data also shows a significant 37.63% decline in hiring for senior executives such as vice presidents and directors.

While there has been a decrease in the recruitment of full-time staff, departments like sales and marketing, as well as finance experienced a growth of 23.24% and 21.45%, respectively.

Over the last nine months, the total salary distributed has grown by 8.22%. There has also been a 6.69% rise in the average salary for full-time employees. The average salary of female employees increased by 9.13%, while male employees observed a growth of 8.87%.

Full-time employees in the finance and human resources departments experienced a salary boost of 11.06%, and 8.90%, respectively.