2024 has been a pivotal year for the Indian IT sector, shaped by both domestic and global economic shifts, technological advancements, and changes in workforce dynamics. Anticipated to contribute 10% to India’s GDP by 2025, Indian IT/tech ecosystem is poised for a promising growth trajectory in the coming years, with workforce expansion being a crucial element of this journey.
Looking back at 2024, the Indian IT/tech ecosystem witnessed a 17% surge in new employment opportunities, driven by rapid digital transformation and the concurrent rising demand for emerging tech niche job profiles. After a muted H1, the sector regained momentum, As we gear up for 2025, these trends will continue, while also eyeing an average 20% rise in profiles like application developers, software engineers, DevOps engineers, AI, ML, and Cyber Security.
Moreover, Artificial Intelligence (AI) which was a major trend in 2024, is expected to further accelerate in 2025. The sector is set for remarkable expansion, with high demand for roles such as data analysts, data engineers, data scientists, and others. The Gen-AI industry alone is projected to 1 million new job opportunities by 2028, contributing significantly to the nation’s GDP. Salaries for Gen-AI positions like Generative AI engineer, Algorithm engineer, AI security specialist are forecasted to rise from the previous year, indicating a 25 -30% upward trend in compensation for mid-level category .
As businesses expand and innovate, this surge in hiring will support new projects, enhance digital infrastructure, and keep pace with technological advancements. For instance, Industries like Global Capability Centers (GCCs) have created over 600,000 jobs between 2018-19 and 2023-24. By 2030, they are projected to employ 2.5 to 2.8 million professionals. Additionally, other non tech sectors like BFSI and Telecom are also likely to increase their intake of IT/tech professionals in the coming year.
As we move towards an evolving IT landscape in 2025, there will be an essential focus on tech upskilling to cultivate a robust workforce pool. Majority of large enterprises and mid-sized companies are expected to marginally increase their upskilling budgets by an average of 15-20% in 2025. Additionally, individuals will continue taking initiative for their own upskilling efforts to prepare for promising new-age tech roles.
An emerging sector set to thrive in 2025 is the Indian IT gig economy, projected to grow by 3X and employ 24 million people by 2030 in which a majority will be created in 2025 and 2026 in high-demand skill areas such as AI Engineers, Data Analysts, and Cybersecurity professional. This demand is expected to follow a 1:1 ratio between Tier 1 and Tier 2 cities. This growth underscores a rising dependence on flexible talent solutions to address the evolving needs of the tech landscape. Companies are increasingly turning to gig workers for their specialized expertise and adaptability, driving hiring trends toward niche technical roles and project-based engagements, making the gig economy a key player in shaping the future of IT talent.
A new wave of growth is emerging in the Indian IT sector, extending beyond Tier 1 cities to include Tier 2 and Tier 3 towns. With companies embracing flexibility and operating in smaller cities, job seekers now have the chance to work closer to home. This shift is expected to fuel a 35%+ increase in hiring across these regions by 2025 with Tier 2 cities like Jaipur, Indore and Coimbatore leading the way.
Although the Indian IT ecosystem stabilised to a larger extend, the sector still faces few challenges, including a talent shortage in emerging fields like AI and cybersecurity, and the impact of global economic instabilities. While initiatives like Digital India and Skill India are beneficial, further strategies to upskill talent and enhance value amid cost pressures are essential for navigating the next phase of technological transformation.