New Delhi, Dec 24 – The Indian IT hiring landscape is at a critical juncture, shifting from a challenging year to a promising outlook for 2025. The focus on specialised skills, particularly in Artificial Intelligence (AI) and data science, along with a rise in hiring in Tier 2 cities, signals a transformation in the sector.
In 2024, the Indian IT industry saw a 7% decline in hiring compared to the previous year, primarily due to macroeconomic challenges and global uncertainties. However, experts are optimistic that the sector will recover in 2025, driven by improvements in economic conditions and technological advancements.
Sunil Chemmankotil, Country Manager at Adecco India, noted that while Global Capability Centres (GCCs) contributed significantly to the hiring activity, accounting for 52.6% of job openings for tech professionals, they couldn’t fully offset the downturn in the IT services sector. Despite this, there were areas of growth and resilience.
The demand for AI and Machine Learning (ML) roles surged by 39%, reflecting an increasing focus on specialised skill sets. Additionally, hiring in Tier 2 cities grew by 48% in the third quarter of 2024, suggesting a geographic shift towards more diversified job opportunities beyond traditional tech hubs.
Hiring for mid- to senior-level professionals rose by 35%, as companies sought experienced candidates amid market fluctuations. Meanwhile, hiring for fresh graduates remained subdued, with growth rates ranging from 2-15% across various tech sectors, according to TeamLease Edtech data. Many companies delayed onboarding campus hires due to uncertain deal flows, influenced in part by the global political climate surrounding major elections.
Looking ahead to 2025, the outlook for the IT hiring market is promising. According to the ManpowerGroup Employment Outlook Survey (MEOS) for Q1 2025, 53% of the 3,150 employers surveyed in India expect increased hiring, the highest among the 42 countries studied.
Jaideep Kewalramani, COO and Head of Employability Business at TeamLease Edtech, said the delayed hiring of freshers in 2024 is expected to change as large projects are anticipated to return in early 2025. This is expected to benefit large players first, with Tier 2 and 3 companies likely to see an increase in orders as buyer sentiment improves.
As macroeconomic headwinds ease and the results of global elections are finalised, companies are expected to gain confidence in the economic outlook and begin capital investments, stimulating deal flow in early 2025. While initial hiring for fresh graduates may remain subdued, the launch of large projects in early 2025 will likely increase job opportunities for new graduates, Kewalramani added.
Wipro CTO Sandhya Arun emphasized that enterprises will accelerate the integration of AI and other advanced technologies to drive significant business value. “2025 promises to be a year of high-velocity technology disruptions, offering new opportunities and presenting unprecedented challenges,” she said.
The demand for specialised tech roles is expected to surge by 30-35%, driven by increased reliance on emerging technologies. Sanju Ballurkar, President (Experis India), ManpowerGroup India, noted that the shift towards AI and automation in India’s IT sector will continue to impact recruitment, with AI-driven tools and machine learning redefining job roles and creating demand for highly specialised positions.
Overall, the IT sector is expected to rebound with a projected 15-20% growth in job opportunities across various industries, according to Chemmankotil. “Looking ahead, the combined hiring intent from GCCs and IT services will bring much-needed relief to job seekers. Employers are optimistic about recovery and growth as companies adapt to new technological landscapes and market needs,” he said.
