More Indian tech employees are moonlighting in spite of employers’ displeasure

For 5 days a week, Abhishek works as a software application designer for an IT business in Bangalore, India.

After clocking 8 hours at the workplace, he returns house to work for another 4 to 5 hours. But he’s not working overtime– he’s moonlighting, or handling numerous tasks apart from his full-time work.

The 30- year-old invests his time after work making mobile applications and sites for customers he discovers on online platforms like Upwork andFiverr

“My end goal is to establish contacts that could pay me more than my full-time job, so that in a couple of years, I’m able to completely switch from my full time to freelance,” he informed CNBC MakeIt

But his employers are not familiar with his strategies, nor has he informed them he is moonlighting.

Abhishek is not the only one– there’s been a 25% to 30% boost in moonlighting activities over the previous 3 years in the nation’s IT sector, according to RandstadIndia

“The market is shifting from an employer-driven market to a talent-driven market,” Viswanath PS, handling director and CEO of Randstad India, informed CNBC in a video interview.

“What it means is that talent is able to now command the type of work they want to do, the companies they want to work for, and how they want to use their time in the best way possible.”

There are a variety of factors driving IT experts to take part in moonlighting, according to Indeed India.

“These consist of the desire to supplement their earnings due to low wages and rising inflation, the need for financial independence, the impact of the pandemic on job security, and the quest for entrepreneurial pursuits,” said Sashi Kumar, head of sales at Indeed India.

Abhishek, for example, has eight years of experience and is paid about $4,000 a month in his full-time job. He currently earns the same amount from moonlighting — with half the time he spends at his main job, he told CNBC. 

A 2020 report from program company HackerRank found that the average salary for Indian developers is about $38,000 per year, compared to those in the U.S. — who earn almost three times more. 

“The root cause is the money, software developers are not paid proportionate to the amount of work that they are doing. I think a lot of us would not moonlight if we feel we are paid fairly,” he added. 

Moonlighting has also become more rampant ever since remote work became the norm during the pandemic, said Viswanath.

“In an office, employers have the ability to monitor people more closely. But in a work from home environment, you could have multiple machines that you are logging into.”

For Kumar, moonlighting is another workplace movement that has gained momentum over the past few years due to the evolving meaning of work. 

“These movements reflect a changing mindset among young professionals who no longer see going above and beyond at work as beneficial,” he added. 

“This shift has led to trends focused on work-life balance, flexibility, and breaking away from the traditional 9-5 model.” 

Trend or not, an employee’s desire to moonlight does not seem to be waning any time soon, according to Randstad’s 2023 research.

It found that nine in 10 employees agreed that an employer is “much more attractive” if workers are allowed to take up additional jobs.

The desire to take up a second job is also relatively stronger among women (92%) compared to men (89%), which is indicative of the prevailing gender-pay gap, Randstad added. 

Here’s where employers disagree: moonlighting goes against the sense of loyalty a company wishes to instill into employees. In some cases, the practice could be unethical. 

IT services giant Wipro for example, fired 300 employees last year for allegedly “working for rival companies,” according to local reports. Its chairman shot down the practice of moonlighting in a tweet: “This is cheating — plain and simple.”

While the moonlighting or side-hustle phenomenon is not brand-new, it provides “unique challenges” in India due to dominating standards and business policies, stated Indeed’sKumar

“Unlike in some other countries, where side-hustling is more accepted, many Indian companies have stringent contracts or policies that discourage employees from working elsewhere,” he included.

“Moonlighting is often perceived as conflicting with company interests, potentially leading to disengagement, productivity loss, and breaches of confidentiality.”

Employers’ issues are not unproven, stated Viswanath, specifically in the IT sector. “The sector is very data-oriented and there is a lot of intellectual property that is involved,” he included.

However, the unfavorable understanding that companies have towards moonlighting stems mainly from their state of mind, stated Viswanath, and the absence of trust in between company and staff members.

That has actually led to numerous business consisting of exclusivity stipulations in agreements, stating that staff members can not pursue a side-hustle, even if it remains in a various market or just a pastime.

Indeed’s current study discovered that nearly half of companies moonlighting as they view it to have an unfavorable influence on “revenue, operating margins and productivity.”

Abhishek worried that he still regularly provides on due dates and deliverables at his core task, in spite of using up numerous jobs on the sidelines.

“I have an agreement of working with my employers to work eight hours a day … Beyond that, if there’s any personal work that I do, they should not have any problem with that,” he included.

Despite its growing population, India comes to grips with skill scarcity– particularly competent labor. According to a current report from task portal TeamLease, over 2 million tasks in AI, cyber security, and blockchain are anticipated to stay unfilled in 2023.

It included that India will require 30 million digitally competent experts by 2026.

“Talent is scarce today and … if you need the best talent, you got to embrace what the talent likes,” statedViswanath

“Previously, the second job was a need for employees, now it has become a want. Once it becomes a want, it’s about how employers can pave the way in making accommodations and ensure that both parties’ interests are equally protected.”

Ideally, beneficial policies that strike the best balance must still be “crystal clear” about what a staff member can or can refrain from doing, while plainly specifying the hours and days needed at the core task.

“There needs to be an upfront disclosure policy where they say, if you want to take up a second job, this is the procedure and we may need to understand a little bit more about that to ensure zero conflict,” Viswanath included.

IT business in India might simply gradually heat up to the concept of moonlighting. For example, Infosys– among India’s biggest IT services business– now enables staff members to use up “gig work” with previous approval of supervisors, according to a regional report.

That’s an about-turn from the business’s previous position which alerted versus double work.

Ultimately, it takes 2 hands to clap. Employees must constantly take the best approvals while staying high levels of work principles at their primary tasks, Viswanath encouraged.

“That requires a lot of professional discipline … upfront disclosure will give your employers assurance that moonlighting is not going to conflict with your primary employment.”

Kumar included: “Assess your time management skills and ensure you can dedicate sufficient time and energy to both your primary job and the side job.”

“Finally, choose a side job that complements your skills and interests, allowing you to gain valuable experience or explore new passions.”

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