India Inc. seems to have found a solution to deal with the economic slowdown. They are now hiring more temporary staff not only at lower levels but at senior positions too as part of an effort to cut down costs during these troubled times.

A report in the Economic Times said BPO companies, project-led organizations and retail industry have already started on contract hiring while others like energy, healthcare and pharmaceuticals are looking to make the shift sooner than later.

Recruitment companies claim that temporary appointments are being accepted by the employees too as a good option while companies see it as a financially smart move that would help them complete time-based assignments at reduced costs.

The basic difference is that companies do not give all the benefits to temporary staff that they usually dole out to the permanent ones. More importantly, firms can alter their workforce size depending on business needs without having to resort to the pinkslips.

The Economic Times article quoted staffing firm TeamLease officials to say that then have seen a 25 per cent spurt in demand for temporary staff from industries like BPO and healthcare.

Ma Foi, another consulting company in the domain says that companies now see even senior positions as options for temporary hiring, which seems to be a positive development in these times of salary cuts and general cost savings.

Another factor that leads companies to temporary hiring is the availability of people with specialized knowledge for a limited period of time. This is something that is evident across sectors, says an official of Ma Foi, in the article.