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Why skills over degrees matter for online freelancing in gig economy

S. Divya Sree by S. Divya Sree
April 30, 2026
Reading Time: 5 mins read
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The gig economy is increasingly shaping how work is organized across industries. From platform-based jobs to online freelancing, it offers flexibility and new income opportunities, but also raises questions around preparedness, stability, and long-term career pathways. While the ecosystem is expanding rapidly, there is still a need to equip learners with the right understanding and skills to navigate this shift effectively.

In this conversation, Dr. Madhuri Dubey, Founder Director, National Skills Network-NSN, spoke with Ms. Pooja Gianchandani, Global Lead – Skills for Gig Economy at GIZ Germany, to discuss the realities of gig work and how the Online Freelancer Training (OFT) Toolkit is addressing emerging gaps.

To learn more about the GIZ Online Freelancing Programme, download the toolkit here!

Below are excerpts from the conversation. To watch the full video, click below.

Q. What are the different types of gig work and what do they involve?

A. Gig work is understood through multiple terms such as platform work, online freelancing, digital labour, or gig economy, which are often used interchangeably. However, the core features remain consistent.

Gig work typically involves:

  • Task-based, short-term assignments
  • Work mediated through digital platforms
  • Platforms acting as intermediaries between clients and workers
  • A strong connection to online or digitally enabled work

It includes both visible forms like delivery or location-based services, and less visible forms such as online freelancing, which operates through digital platforms.

Q. What are the key challenges or features of gig work today?

A. A major challenge lies in how gig work differs from traditional employment. Many learners are conditioned to expect stable, structured jobs with fixed salaries, whereas gig work requires a very different approach.

One important observation is that people often associate gig work only with visible roles like delivery or logistics. However, there is another significant segment:

  • Location-based gig work: Work found through platforms but delivered physically
  • Online freelancing (cloud work): Digital work such as coding, content, tutoring, or data-related tasks

Online freelancing remains less visible but is widely used, especially by businesses. Notably:

  • A significant portion of online freelancers are women
  • Small and medium enterprises rely heavily on freelancers for flexibility

Q. Why is there a need to prepare learners for gig work?

A. The current education and training systems are largely designed around traditional employment pathways, where completing a course lead to a stable job. However, this model is increasingly disrupted due to technological and economic changes.

Key issues include:

  • Learners expect job security that may no longer exist
  • Limited awareness of alternative work models
  • Trainers and institutions are not fully exposed to these new forms of work

As a result, many learners enter gig work informally; often influenced by peers, without understanding how to sustain or grow in it.

Why skills over degrees matter for online freelancing in gig economy

Q. What problem does the OFT Toolkit aim to solve?

A. The toolkit addresses the gap between existing training systems and the realities of gig work.

While institutions provide:

  • Technical skills
  • Transversal skills (soft skills, work skills)

They often miss transitional skills, which are critical for navigating new forms of work.

This is explained through a three-part framework:

  • Technical skills
  • Transversal skills
  • Transitional skills (how to find and manage work in the gig economy)

The focus is not just on entering gig work, but on enabling individuals to move in and out of it effectively.

Q. How can institutions use the OFT Toolkit effectively?

A. The toolkit is based on practical implementation across multiple countries and is designed as a step-by-step guide.

It allows flexibility in adoption:

  • Institutions can start at different stages depending on existing capacity
  • It can be integrated into current curricula without major changes
  • It provides both guidance and ready-to-use content

Importantly, it is not a fixed model but a living document, evolving with ongoing feedback and implementation experiences.

Q. What kind of skills gaps were identified among learners?

A. When interacting with workers and learners, several practical gaps emerged, especially in handling real-world freelancing situations.

Some key challenges include:

  • Managing clients without direct interaction
  • Handling payments and resolving disputes
  • Understanding platform-based workflows
  • Managing time and expectations independently

To address this, the program introduced a Skills Trio approach:

  • Financial skills
  • Digital skills
  • Soft skills specific to platform work

These were developed into structured learning modules linked to the toolkit.

Q. How does the toolkit address different learner groups like women or migrants?

A. The toolkit itself serves as a guiding framework, and its effectiveness depends on how institutions adapt it to their context.

It is part of a broader set of initiatives that include targeted approaches for:

  • Women
  • Migrants
  • Refugees

For example, mentorship and peer learning programs were designed specifically for women in the gig economy. In one instance, women participants realized for the first time that they were part of the digital workforce.

This highlights the importance of:

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  • Contextual adaptation
  • Building awareness and identity
  • Supporting diverse learner needs

Also read: Skills Over Degrees: Online Freelancer Training Toolkit

Q. Is there anything else you wish to say?

A. The most important shift required is a change in mindset. Institutions need to move beyond traditional placement-focused models, while learners must be prepared for flexible, evolving career paths. Freelancing should be seen not as a fallback, but as a viable and growing career option.

Ultimately, understanding and engaging with gig work requires both awareness and practical experience; sometimes the best way to learn is by trying it firsthand.

Tags: freelancing skillsgig economygig economy skillsgig workGIZ GermanyOFT toolkitonline freelancer trainingonline freelancingplatform workskill development Indiaskills over degreeswork-integrated learning
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