New Delhi: The Indian IT hiring landscape is at a turning point as it moves from a year of decline to a more optimistic future. A focus on specialized skills, particularly AI and data science, combined with geographic shifts towards Tier 2 cities, indicate a shift within the region.
While the IT hiring landscape in India in 2024 was marked by delayed onboarding and a decline in overall hiring activity, the outlook for 2025 is for recovery and growth fueled by improvements in economic conditions and technological developments. Looks promising with hope.
In 2024, the Indian IT sector experienced a nearly 7 percent decline in hiring compared to last year, mainly due to broader macroeconomic challenges and global uncertainty.
While Global Capability Centers (GCCs) played an important role in increasing recruitment – 52.6 percent of job openings for technical professionals – they did not fully offset the significant decline, said Sunil Chemmankotil, Country Manager, Adeco India. IT services sector.
Despite this overall contraction, some sectors showed resilience and growth.
Demand for roles in artificial intelligence (AI) and machine learning (ML) has increased by 39 percent, reflecting a shift toward more specialized skills as organizations prioritize these technologies, according to research from Ade.
There was a significant increase in IT hiring in Tier 2 cities, which saw an impressive 48 percent growth in the third quarter of 2024, indicating a trend towards geographic diversification of job opportunities beyond traditional tech hubs.
Hiring for professionals with mid- to senior-level experience rose 35 percent, suggesting companies are favoring experienced candidates amid market volatility.
Data from Teamlease EdTech showed that the hiring landscape for fresh graduates remained sluggish, with growth rates of 2-15 percent in various technical fields.
Companies often delay onboarding campus leases due to uncertain deal flow, which industry leaders believe was particularly influenced by the global political climate surrounding key elections.
As India moves into 2025, there are encouraging signs that the IT hiring landscape could rebound significantly.
“In 2024, new hires generally remained muted as many companies chose to delay onboarding of their campus leases. This could change as deal flow for large projects is expected to return to early 2025. The first set of deal flows will benefit the big players and boost buyer sentiment. As it improves, Tier 2 and 3 players can expect an increase in orders, said Jaideep Kewalramani, COO and Head of Employment Business at TeamLease Edtech.
He said organizations will be more confident about the economic outlook and start making some bets on capital investment, saying that the US is the last to come in 2024 with the election results of major economies. Help jump-start deal flow in early 2025.
While fresh enrollment may remain sluggish initially, employment opportunities for fresh graduates are expected to increase significantly after major projects begin in early 2025, Kewalramani said.
Companies are expected to invest heavily in upskilling their workforce to meet evolving demands, particularly in areas such as AI and cybersecurity.
Wipro CTO Sandhya Arun believes enterprises are poised to accelerate the integration of AI and other advanced technologies to unlock significant business value.
“The year 2025 promises to be a year of high-speed technology disruptions, offering new opportunities and presenting unprecedented challenges. The future belongs to enterprises that embrace technology and disruption…” said Arun.
Demand for specialized technical roles is projected to grow by 30-35 percent, driven by increased reliance on emerging technologies.
According to Chemmankotil, the sector is expected to revive with a projected 15-20 percent increase in employment opportunities across various industries.
“Looking ahead, the joint recruitment drive from the GCC and IT services will be a welcome relief to job seekers. Employers are hopeful of recovery and growth as companies adapt to the new technological landscape and market needs,” he said.