Indian IT hiring: 2025 promises rebound; AI/data science roles to dominate job market

In 2024, the Indian IT sector experienced approximately a 7% decline in hiring compared to the previous year, largely due to broader macroeconomic challenges and global uncertainties.

New Delhi: Indian IT hiring landscape is at a pivotal juncture as it transitions from a year of decline towards a more hopeful future. The focus on specialised skills, particularly in AI and data science, combined with geographical shifts towards Tier 2 cities, indicates a transformation within the sector.

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 appears promising with expectations of recovery and growth fuelled by improvements in economic conditions and technological advancements.

In 2024, the Indian IT sector experienced approximately a 7 per cent decline in hiring compared to the previous year, largely due to broader macroeconomic challenges and global uncertainties.

Sunil Chemmankotil, Country Manager of Adecco India, noted that while Global Capability Centres (GCCs) played a crucial role in boosting hiring -- accounting for 52.6 per cent of job openings for tech professionals -- they could not fully offset the significant downturn in the IT services sector.

Despite this overall contraction, certain areas showed resilience and growth.

The demand for roles in Artificial Intelligence (AI) and Machine Learning (ML) surged by 39 per cent, reflecting a shift towards more specialised skill sets as organisations prioritised these technologies, according to Adecco research.

There was notable growth in IT hiring within Tier 2 cities, which saw an impressive 48 per cent increase during the third quarter of 2024, indicating a trend of geographic diversification of job opportunities beyond traditional tech hubs.

Hiring for professionals with mid- to senior-level experience increased by 35 per cent, suggesting that companies favour experienced candidates amid market fluctuations.

The hiring landscape for fresh graduates remained subdued, with growth rates ranging from 2-15 per cent across various tech sectors, data from TeamLease Edtech showed.

Companies often delayed onboarding campus hires due to uncertain deal flows, which industry leaders believe was particularly influenced by the global political climate surrounding major elections.

As India moves into 2025, there are encouraging signs that the IT hiring landscape may rebound significantly.

"In 2024, fresher hiring remained muted in general with several companies also choosing to delay the onboarding of their campus hires. This may change as the deal flow for large projects is expected to return in early 2025. The first set of deal flow will benefit the large players and as the buyer sentiment improves, the tier 2 and 3 players can expect a rise in orders," Jaideep Kewalramani, COO and Head of Employability Business at TeamLease Edtech, said.

As the macro headwinds slow down and the results of elections of large economies, the US being the last one in 2024 to come in, he said organisations will be confident about the economic outlook and start to make some bets on the capital investments, which will help jump-start the deal flow in early 2025.

While fresh hiring may remain subdued initially, it is anticipated that as large projects commence in early 2025, there will be a notable increase in job opportunities for new graduates, 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 set to accelerate the integration of AI and other advanced technologies to unlock significant business value.

"Year 2025 promises to be a year of high-velocity technology disruptions, offering new opportunities and presenting unprecedented challenges. The future belongs to enterprises that embrace technology and disruption..." Arun said.

The demand for specialised tech roles is anticipated to surge by 30-35 per cent, driven by an increasing reliance on emerging technologies.

The sector is expected to rebound with projections indicating a 15-20 per cent growth in job opportunities across various industries, according to Chemmankotil.

"Looking ahead, the combined hiring intent from GCC and IT services will be a welcome relief to job seekers. Employers are optimistic about recovery and growth as companies adapt to new technological landscapes and market needs," he said.