Pre-pandemic, we used to talk about the future of work like a distant and theoretical event that organisations had to prepare for. There was no real urgency behind some of the long-term trends that were being predicted. Today, we are facing an unprecedented rate of change in the world of work. Business conditions are shifting underneath the feet of seasoned organisations and we no longer have the luxury of planning for an eventual future- The future is here.
So what exactly are we faced with? When you combine volatile economic conditions, accelerated business competition, supply chain disruptions, and a projected global skills shortage which is anticipated to cost businesses 8.5 trillion in unrealised revenue — you have a recipe for disruption. Fundamentally, this means that businesses cannot continue to operate based on historical precedents and well-oiled recruitment practices. They must rethink how they play in the competitive field of talent.
One of the biggest trends that we have seen at Outsized is the shift from static talent models to more agile, flexible approaches that allow leaders to respond quickly to the evolving needs of their businesses. They are doing this by building up small armies of highly skilled, on-demand professionals that they can activate in short periods of time without carrying the fiscal risk of permanent employment.
On-demand talent is having a Renaissance
Like the rest of the world, the on-demand economy In Southeast Asia is growing rapidly. Many skilled professionals are choosing project-based work instead of permanent employment. In 2024 it’s often the safer and more profitable approach for many. Just look at the hiring freezes and widespread layoffs of the last couple of years. Couple this volatility with the benefits of flexibility, higher pay and diverse opportunities and we can see why this trend is not going anywhere.
In our eyes, these conditions present organisations with a unique opportunity to build a more resilient and agile workforce. The new approach to talent requires a shift in perspective.
The Southeast Asia Perspective
If we look at Southeast Asia in particular we can see many of these trends play out. Over the last decade, the region has experienced significant digital transformation that has led to a flourishing start-up scene and accelerated innovation in fintech, e-commerce, digital banking and consumer products. The workforce required to sustain this growth is highly skilled and highly specialised.
So what happens when the economy takes a swift downturn like it did last year? Mass layoffs and expensive restructuring. Hiring managers today have to live with the risk of knowing that skills they are aggressively hiring for one year could be the exact skills they are massively laying off the next. Not ideal both from a financial and a talent perspective.
The alternative is something that is known as, ‘workforce in a box’. This talent strategy involves using pre-vetted, skilled individuals on a large scale across different functions and business areas, providing rapid access to talent and facilitating new growth opportunities while efficiently managing capital.
Outsized trend predictions: 2024 Talent-on-Demand Report
In our third Talent On-Demand report, where we examined the global talent landscape, including significant insights from Southeast Asia, we identified three main trends that are reshaping the talent landscape.
Three trends shaping the future of work conversation today
- Widespread digital transformation, especially in the financial services sector. Amid an ongoing focus on the unbanked in the Philippines, Indonesia, Thailand and Vietnam, legacy banks are attempting to boost their digital offerings and compete with nimble digital-first competitors. This has led to investment in several large-scale transformation initiatives across the banking sector.
- Supply chain optimisation spurred by pandemic- exposed inefficiencies. With continued and increasing socio-political disruption, volatility in market pricing and sustained high inflation, there is significant pressure on organisations to review and rethink their supply chains. The goal here is to reduce risk exposure and build organisational resilience.
- Businesses have shifted their focus from discussing the ‘future of work’ to recognising that the future is already here. This has led them to explore new models for building capabilities while maintaining cost efficiency. As a result, traditional fixed-cost and fixed-capability models are being phased out in favour of talent models that provide variable costs and increased flexibility. This adaptation allows enterprises to stay agile and responsive to changing market demands.
As Southeast Asia continues to ride the roller-coaster of a rapidly evolving business landscape, the need for agility and flexibility in workforce models has never been more critical. The transition from static talent models to dynamic, on-demand solutions is not just a trend—it’s a necessity for survival and growth in today’s volatile economic environment. By adopting this new approach, organisations can not only meet their immediate talent needs but also build a resilient foundation for the future. The future of work is not a distant concept; it is here, now, reshaping the way businesses operate and thrive in Southeast Asia and beyond.
About the author
Anurag Bhalla is the Co-Founder and Managing Director (APAC) at Outsized. Based in Singapore, he is responsible for expanding the business in Southeast Asia. With 18 years of experience in corporate financial services, innovation and strategy consulting, and venture building across the UK, US, Europe, Africa, and Asia, Anurag brings a wealth of knowledge and expertise to his role.
