India's IT Sector Sees 16% Growth in Hiring, Driven by AI, Cloud, and GCCs

India's IT Sector Experiences Significant Growth

India's Information Technology (IT) sector has witnessed a remarkable 16% year-on-year increase in hiring during April 2025, according to the foundit Insights Tracker report. This growth is primarily attributed to three key factors: artificial intelligence (AI) adoption, cloud modernization, and the continued expansion of Global Capability Centers (GCCs) 1 2.

Global Capability Centers Drive Job Creation

GCCs have played a pivotal role in this hiring surge, contributing over 110,000 new tech jobs in the fiscal year 2024-2025. This expansion has led to increased demand for specialized roles such as data engineering, DevOps, and enterprise architecture 1 2.

Shift Towards Skill-Based Hiring

The IT sector is experiencing a paradigm shift in hiring practices, with 62% of employers now prioritizing practical expertise over formal qualifications. This trend reflects a growing emphasis on specialized, future-ready skills that align with India's vision of empowering its youth for global leadership in science and innovation 2.

In-Demand Skills and Domains

The most sought-after domains in the IT sector include:

AI/Machine Learning
Cloud Computing
Cybersecurity
Data Analytics

These four areas account for an impressive 95% of job postings in the IT sector 1 2.

Salary Trends and High-Demand Roles

The IT & ITeS sector continues to lead in salary growth, with AI expertise commanding premium pay. Entry-level AI roles start at ₹7.2 LPA, while senior AI professionals can earn up to ₹76.4 LPA. Cybersecurity professionals command even higher salaries, reaching up to ₹87 LPA at the senior level 2.

Emerging Tech Hubs in Tier-2 Cities

While metro hubs like Bengaluru, Mumbai, and Delhi NCR continue to lead in hiring for leadership and specialist roles, tier-2 cities are rapidly emerging as vibrant talent hubs. Cities such as Coimbatore, Ahmedabad, and Baroda have recorded remarkable annual hiring growth of 40%, 17%, and 15% respectively. This growth is driven by hybrid work models and cost advantages 1 2.

Future Outlook

The IT sector in India is projected to grow by 15% in 2025, with a continued focus on future-ready skills. AI adoption is expected to reach 48% across industries, potentially leading to a 14% increase in hiring for AI roles. The expansion of GCCs, growth in tier-2 cities, and the prevalence of hybrid work models are anticipated to make tech hiring more inclusive and skills-focused in the coming year 2.

As V. Suresh, CEO of foundit, states, "India's IT sector is entering a new era of strategic growth. We are witnessing a clear shift from scale-based hiring to a strong focus on specialized, future-ready skills." This transformation is shaping a resilient, innovation-led digital workforce that will play a crucial role in India's technological advancement and global competitiveness 2.