The Indian IT industry is poised for a strong rebound in hiring in 2025, driven by rising demand for AI and data science roles, growth in Tier 2 cities, and emerging tech opportunities. After a challenging year in 2024, marked by a 7% decline in hiring due to macroeconomic challenges, the sector is expected to make a significant comeback. Sunil Chemmankotil, Country Manager of Adecco India, noted that while Global Capability Centres (GCCs) accounted for 52.6% of job openings for tech professionals, they couldn’t fully offset the downturn in the IT services sector.
Despite this, the demand for Artificial Intelligence (AI) and Machine Learning (ML) roles surged by 39%, indicating organizations’ prioritization of these specialized skills. Tier 2 cities saw notable growth in IT hiring, with a 48% increase during the third quarter of 2024, reflecting a trend towards geographic diversification of job opportunities. As India moves into 2025, the outlook for IT hiring is optimistic.
According to the ManpowerGroup Employment Outlook Survey (MEOS) for the first quarter of 2025, 53% of 3,150 employers surveyed in India expect an increase in hiring—the highest among the 42 countries studied. Jaideep Kewalramani, COO and Head of Employability Business at TeamLease Edtech, anticipates a notable increase in job opportunities for new graduates as large projects commence in early 2025. Companies are expected to invest heavily in upskilling their workforce to meet evolving demands, especially in AI and cybersecurity.
Wipro CTO Sandhya Arun believes enterprises will accelerate the integration of AI and other advanced technologies.
Tech hiring surges in Tier 2
“Year 2025 promises to be a year of high-velocity technology disruptions, offering new opportunities and presenting unprecedented challenges,” Arun said.
The demand for specialized tech roles is anticipated to surge by 30-35%, driven by reliance on emerging technologies. Sanju Ballurkar, President of Experis India at ManpowerGroup India, highlighted that AI and automation will create a demand for highly specialized roles while automating routine tasks. Overall, the sector is expected to rebound with projections indicating a 15-20% growth in job opportunities across various industries, according to Chemmankotil.
“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. Engineering institutions across India are also expected to witness a significant surge in campus placements in the fiscal year 2025.
According to industry experts, placements are anticipated to increase by 25-30% due to the rising demand for tech skills in various sectors. Prof. Priya Reddy, head of the placement cell at a prominent engineering college in Hyderabad, stated, “We have seen a remarkable increase in the number of companies visiting our campus for recruitments.
This year, we expect the placement numbers to be significantly higher than the previous years.”
The Indian IT industry’s resilience and potential for stable growth are underpinned by robust domestic demand and ongoing digital transformation, providing much-needed hope for the sector’s future prospects.
April Isaacs is a news contributor for DevX.com She is long-term, self-proclaimed nerd. She loves all things tech and computers and still has her first Dreamcast system. It is lovingly named Joni, after Joni Mitchell.
