India’s IT sector plans major hiring surge amid AI boom
MUMBAI, INDIA — India’s IT sector is preparing for a substantial hiring surge to meet the country’s growing demand for IT services.
Leading IT companies reportedly plan to recruit between 40,000 and 50,000 new employees to address the needs of the expanding domestic market.
This follows a period of slowed recruitment over the past four to six quarters, during which many companies saw a reduction in their workforce.
Domestic market emerges as key growth driver
With growth in North American and European markets slowing, Indian IT companies are increasingly focusing on the domestic market.
Traditionally contributing high single digits to revenue, the domestic market is now poised for significant growth.
Tata Consultancy Services CEO K. Krithivasan highlighted India’s potential as a crucial growth pillar, noting that the domestic market’s contribution to TCS’s revenue increased to 7.5% in Q1 FY25, up from 4.9% the previous year.
High demand for AI-related roles
The surge in demand for IT services is accompanied by a growing need for AI-related roles.
Recruitment firms report high demand for positions such as Chief AI Officer, Data Analyst, AI Governance Policy Analyst, AI Product Manager, AI Solutions Architect, and ML Engineer.
Companies are also offering salaries 56% higher than the average to attract qualified candidates.
Challenges in talent acquisition
Despite the hiring surge, finding the right talent remains a challenge due to the evolving nature of technology roles driven by Generative AI.
“While Indian IT companies are some of the largest employers of technology talent, candidates also gravitate toward multinationals and Global Captive Centers,” said Sachin Alug, CEO of NLB Services.
He emphasized that better pay packages, learning opportunities, and global growth prospects are key attractions for candidates.
Optimism around AI’s impact on job market
A survey by recruitment and consulting firm Indeed revealed that both employers (85%) and job seekers (63%) are optimistic about AI’s potential to create new job opportunities.
“AI is changing the way we find jobs and how we work, marking a shift as significant as the internet’s arrival,” said Sashi Kumar, Head of Sales at Indeed India. He added that AI will redefine work but not eliminate entire industries.
Increase in job postings and interest
Job postings in the IT sector have increased by 41.5% in Hyderabad and 24% in Bengaluru.
There has also been a notable rise in job seeker interest, with a 161% increase in job clicks in Hyderabad and an 80% increase in Bengaluru.
Future hiring outlook
Sundar Eshwar, Business Head of IT Staffing at Xpheno Consulting, noted that top IT firms have to compensate for the degrowth before registering net additions.
“The current outlook for the tech sector’s net growth in the current fiscal remains in the 200K-250K range, translating to over 325K-350K hires to compensate for degrowth and expansion,” he said. Over 60% of this growth is expected to come from top IT firms.
India’s IT sector is set to ramp up hiring significantly to meet the rising demand for services, particularly in AI-related roles, despite challenges in finding the right talent. The domestic market is emerging as a crucial growth pillar, and optimism around AI’s potential is high among both employers and job seekers.
