The Future of Indian IT: Growth and Opportunity

The Indian IT ecosystem is set to experience promising growth in the coming years, with emerging technologies projected to create a 20% increase in new job opportunities by 2025, according to HR platform FirstMeridian Business Services.

2024: A Year of Growth

Reflecting on 2024, FirstMeridian reported a 17% surge in new employment opportunities within the IT and tech sectors, which was largely driven by rapid digital transformation and an increasing demand for niche tech profiles.

Sector Recovery and Future Predictions

After a sluggish first half of the year, the IT sector regained momentum. “As we look toward 2025, we anticipate these trends to continue, with an average 20% rise in demand for roles such as application developers, software engineers, DevOps engineers, AI specialists, machine learning experts, and cybersecurity professionals,” said Sunil Nehra, CEO of IT Staffing at FirstMeridian Business Services.

The Role of Artificial Intelligence

Artificial intelligence (AI), which emerged as a significant trend in 2024, is expected to accelerate even further in 2025. Nehra emphasized that the sector is poised for remarkable expansion due to high demand for data-centric roles, including data analysts, data engineers, and data scientists.

Job Opportunities in the Gen-AI Space

The Generative AI industry is particularly notable, as it is projected to offer 1 million new job opportunities by 2028, playing a crucial role in contributing to the nation’s GDP. Salaries for roles such as generative AI engineers, algorithm engineers, and AI security specialists are expected to rise by 25-30% for mid-level positions in the coming year.

Impact on Business Growth

This surge in hiring is set to support new projects, enhance digital infrastructure, and help businesses keep pace with rapid technological advancements. Industries such as global capability centers (GCCs) have already generated over 600,000 jobs between 2018-19 and 2023-24.

Future Projections

By 2030, GCCs are anticipated to employ between 2.5 and 2.8 million professionals. Furthermore, other non-tech sectors, particularly Banking, Financial Services, Insurance (BFSI), and Telecom, are also expected to increase their intake of IT/tech professionals in 2025.

Focus on Upskilling

Nehra highlights that as the IT landscape evolves, a focus on tech upskilling will be vital to cultivate a robust workforce. Many large enterprises and mid-sized companies are likely to marginally increase their upskilling budgets by 15-20% in 2025.

Individual Initiative in Skill Development

Individuals are expected to continue taking the initiative for their own upskilling efforts as they prepare for promising new-age tech roles in the changing job market.

Growth of the IT Gig Economy

The emerging sector of the Indian IT gig economy is also projected to expand significantly, with employment expected to triple to 24 million individuals by 2030. This growth reflects a 1:1 ratio between job opportunities in tier I and tier II cities.

The Shift Towards Flexible Talent Solutions

This evolving demand underscores an increasing reliance on flexible talent solutions to meet the tech landscape’s changing needs. According to Nehra, companies are increasingly turning to gig workers for their specialized expertise and adaptability, which drives hiring trends towards niche technical roles and project-based engagements.

Challenges Ahead

Despite stabilizing, the Indian IT ecosystem faces challenges, including a talent shortage in emerging fields such as AI and cybersecurity and the impact of global economic instabilities.

Need for Further Strategies

Nehra emphasizes that while initiatives like Digital India and Skill India are beneficial, there is a crucial need for additional strategies focused on upskilling talent and creating value amid economic pressures in order to smoothly navigate the next phase of technological transformation.

Conclusion

In summary, the Indian IT ecosystem is on the brink of transformative growth, with significant opportunities in emerging technologies. By investing in upskilling and adapting to market needs, the sector can overcome challenges and leverage its potential for greater economic contribution.