Indian IT salaries predicted to rise in 2025
NEW DELHI, INDIA — The Indian IT sector is poised for a salary increase in 2025, driven by the competitive landscape shaped by global capability centers (GCCs).
These centers offer significantly higher packages and better designations, particularly for freshers, compared to traditional IT companies. This competition is compelling Indian IT firms to reevaluate their compensation strategies to attract and retain top talent.
Surge in demand for AI skills
As the industry shifts towards generative artificial intelligence (AI), hiring strategies are evolving. According to Pareekh Jain, CEO of Pareekh Consulting, there is a notable increase in demand for AI-related skills among IT companies.
Last year, candidates with AI expertise constituted about 10% of total hires; this figure is expected to rise to 20-25% this year. Consequently, new hires with these skills are likely to command higher salaries.
Krishna Vij from TeamLease Digital also noted that AI tools enhance productivity by automating repetitive tasks and creating specialized roles to manage AI systems. This trend suggests that while team sizes may remain stable, there will be a strong emphasis on upskilling existing talent.
GCCs’ influence on salary structures
GCCs are setting new salary benchmarks by offering 12-20% higher salaries than those in IT services for comparable roles.
According to ANSR, 90% of GCCs in India plan to leverage AI and related technologies within the next few years. This expansion is pushing IT companies to increase salaries for specialized roles in AI, data science, and cybersecurity.
For example, GCCs offer software developers salaries ranging from ₹9.7 lakh (US$11,600) to ₹43 lakh (US$51,800) per annum based on experience, whereas IT services typically offer ₹5.7 lakh (US$6,800) for entry-level positions. This disparity underscores the need for traditional IT firms to adjust their pay scales.
Benefits for freshers and experienced professionals
Pinkesh Kotecha of Ishan Technologies predicts a 10-15% salary increase for freshers and up to 15% for experienced professionals in the coming year. The focus will be on how well tech professionals have upskilled to meet evolving industry demands.
Major IT firms like Tata Consultancy Services and Infosys are planning significant hiring sprees, with TCS aiming for 40,000 freshers and Infosys targeting up to 20,000. This hiring push is partly driven by anticipated retirements early next year, necessitating quick replacements.
Future outlook: Rising demand and opportunities
With AI expected to create approximately 2.73 million tech roles by 2028, the demand for skilled professionals is set to rise sharply. As Indian IT companies compete with GCCs for talent, the sector may finally see long-awaited salary increases that reflect the growing importance of AI skills in the modern tech landscape.
