— Deepak Malkani, Co-Founder, IndusGuru

The gig economy has experienced significant growth over the past decade, driven by technological advancements, flexibility, economic necessity, and diverse opportunities. The widespread use of smartphones and high-speed internet has enabled access to gig work through digital platforms, while the flexibility to set one’s own schedule and choose projects attracts many workers. Economic downturns and job market changes have also pushed individuals to seek gig work as an alternative income source.

By 2025, the gig economy is expected to generate global revenues of around $500 billion. In India, the sector has the potential to generate up to 90 million jobs in non-farm industries and drive over $250 billion in economic activity within the next 8-10 years. Additionally, it is anticipated that by 2025, more than half of the global workforce will be involved in some form of gig work. However, as this sector grows, a new challenge is emerging: unequal access to technology, creating a divide that threatens to deepen economic inequality.

Technological Disparities and Economic Inequality

Access to the internet and advanced devices is not uniform across all regions and demographics. For instance, in developed countries, 7.5% of adults engage in gig work through digital platforms, compared to only 2.9% in developing countries. Workers in rural areas often face challenges due to limited access to high-speed internet. A study found that gig workers in urban areas earn significantly more than those in rural areas due to better technological access. This technological divide means that while some workers thrive, others are left behind, unable to compete for or secure well-paying gigs. The lack of access to digital platforms and tools effectively creates a barrier to entry for many, reinforcing economic inequality.

Bridging the Gap

Efforts to address this growing divide are essential. Governments, businesses, and non-profits must collaborate to improve technological access and digital literacy. The Indian government has launched several initiatives to improve digital infrastructure. For example, the BharatNet project aims to provide high-speed internet to over 250,000 gram panchayats (village councils) across India. Additionally, digital literacy programs like the Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA) aim to make six crore rural households digitally literate. Implementing digital literacy programs in schools and communities can help bridge the gap. India’s Digital India initiative aims to increase digital literacy and provide affordable internet access to all citizens.

Gig platforms operating in India should also consider creating low-data versions of their apps to cater to users with limited internet access and offering training programs in regional languages to improve digital literacy among gig workers. Platforms like IndusGuru, with initiatives such as Beyond Work, are not only connecting freelance consultants with opportunities but also offering comprehensive upskilling programs. These initiatives ensure that gig workers have the necessary skills and digital literacy to thrive in the evolving gig economy. By providing both access to opportunities and the tools needed for success, these platforms are helping to create a more inclusive and fair environment for gig workers across diverse regions.

Successful initiatives like the Digital Empowerment Foundation (DEF) in India demonstrate the impact of targeted efforts. DEF works to bridge the digital divide by providing digital literacy training and access to technology in rural areas. Their initiatives have helped thousands gain digital skills and access online work opportunities.

Conclusion

As the gig economy continues to expand, addressing the technological divide is critical to ensuring unbiased access to opportunities. A more balanced economic scenario can be achieved by improving technological access and digital literacy. Stakeholders across sectors must come together to address these challenges and promote a more inclusive economic environment.

Sources:
https://maseconomics.com/the-gig-economy-the-digital-divide-and-developing-countries/
https://www.pewresearch.org/internet/2021/12/08/the-state-of-gig-work-in-2021/
https://en.wikipedia.org/wiki/Bharat_Broadband_Network#:~:text=On%2025%20October%202011%2C%20the,it%20to%20the%20gram%20panchayats.
https://www.pmgdisha.in/about-pmgdisha/
https://dev-d9.apc.org/en/member/digital-empowerment-foundation-def#:~:text=Digital%20Empowerment%20Foundation%20(DEF)%2C,to%20bridge%20the%20digital%20divide.
Slide 1 (assocham.org)
https://www.niti.gov.in/sites/default/files/2022-06/25th_June_Final_Report_27062022.pdf
2024 Gig Economy Statistics: Unveiling 85+ Remarkable Insights (techreport.com)