The Indian IT hiring landscape is poised for recovery in 2025, following a challenging 2024. As the sector navigates through a period of decline, opportunities for specialized skills—particularly in AI, data science, and cybersecurity—are expected to surge. A geographic shift toward Tier 2 cities and increased investment in workforce upskilling further fuel optimism for growth in the coming year.
Decline in 2024: A Year of Adjustments
In 2024, the Indian IT sector saw a 7% decline in hiring compared to the previous year, primarily due to broader macroeconomic challenges and global uncertainties. Sunil Chemmankotil, Country Manager of Adecco India, noted that although 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.
However, certain areas showed resilience. The demand for AI and machine learning roles surged by 39%, highlighting the growing emphasis on specialized skill sets. Furthermore, Tier 2 cities witnessed a remarkable 48% increase in IT hiring during Q3 2024, signaling a shift toward diversified job opportunities beyond traditional tech hubs like Bengaluru and Hyderabad.
Tier 2 Cities See Significant Growth
One of the most notable trends in 2024 was the rise of IT hiring in Tier 2 cities, which saw an impressive 48% growth. This geographic diversification in job opportunities is reshaping India’s IT employment landscape. Companies are increasingly seeking to tap into the talent pool in cities such as Pune, Ahmedabad, and Chandigarh, which are emerging as new tech hubs.
This shift is expected to continue into 2025, with many organizations expanding their operations outside the traditional metro cities to take advantage of the lower cost of living and untapped talent in these regions.
Hiring Trends: Mid-Senior Roles and Delayed Onboarding
While the hiring pace for fresh graduates remained sluggish in 2024, with growth rates ranging from 2-15% across tech sectors, the demand for mid- to senior-level professionals increased by 35%. Companies are favoring experienced candidates to navigate market fluctuations. Additionally, onboarding delays for campus hires were common due to uncertain deal flows, influenced in part by global political climates and major elections.
As India moves into 2025, the hiring landscape is expected to improve, particularly as large projects start to roll out early in the year. Jaideep Kewalramani, COO of TeamLease Edtech, shared that fresh hiring will likely pick up as organizations become more confident about the economic outlook after key elections.
Upskilling and Specialized Roles: The Key to Future Growth
As companies adapt to the evolving technological landscape, significant investments in upskilling their workforce will become crucial. Emerging fields such as AI, machine learning, and cybersecurity are expected to dominate hiring, with specialized tech roles anticipated to grow by 30-35% in 2025.
According to Sandhya Arun, CTO of iPro, 2025 will be marked by rapid technological disruptions, offering both challenges and new opportunities for enterprises that embrace innovation. Businesses will need a skilled workforce to stay competitive, and upskilling efforts will be essential to meet the growing demand for advanced tech capabilities.
Optimism for 2025: Recovery and Growth Ahead
Despite a challenging 2024, there is strong optimism for a rebound in 2025. Projections indicate a 15-20% growth in job opportunities across various industries, with demand for specialized roles driving much of this increase. As the global economy stabilizes and large projects get underway, the combined hiring efforts from GCCs and IT services will provide a much-needed boost to job seekers in the IT sector.
Chemmankotil from Adecco India concluded, “The hiring intent from both GCCs and IT services signals a positive shift in the job market. Employers are optimistic about recovery and growth, and as technology continues to evolve, the demand for skilled professionals will only rise.”
ALSO READ: Startups Fueling1.6 Million Jobs: DPIIT
