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The Indian IT Hiring is expected to rebound in 2025 after a challenging year marked by slow hiring and delayed onboarding.
Companies are shifting their focus to specialised skills, particularly in artificial intelligence (AI) and data science, while expanding opportunities in Tier 2 cities.
Economic improvements and technological advancements are expected to drive growth, bringing optimism for both job seekers and employers.
Hiring Decline in 2024 and Market Shifts
According to ET report, the Indian IT sector saw a 7% drop in hiring in 2024, largely due to economic uncertainties and global challenges.
While Global Capability Centres (GCCs) accounted for over half of tech job openings, they were unable to fully offset the decline in IT services hiring.
Despite the slowdown, demand for AI and machine learning (ML) roles grew by 39%, reflecting companies’ focus on advanced technology.
Tier 2 cities also saw a significant 48% rise in hiring during the third quarter of 2024, suggesting a move beyond traditional tech hubs.
Hiring for mid- to senior-level professionals increased by 35%, whereas fresher recruitment remained limited, with growth rates ranging from 2-15% across different tech sectors.
Outlook for 2025: Signs of Growth
Industry experts predict a hiring recovery as business confidence improves. Delayed onboarding of fresh graduates in 2024 was influenced by uncertain deal flows, but hiring could pick up in early 2025 as major projects restart.
Large IT firms are expected to benefit first, followed by mid-sized and smaller companies as buyer sentiment improves.
4-5 Lakh IT Jobs in India in 2025
The major Indian IT companies—TCS, Wipro, Infosys, Cognizant, and HCLTech—reported combined revenues of approximately $89-$90 billion for the year ending March 2024.
Their total employee count approaches 20 lakh, with specific headcounts of around 650,000 for TCS, 300,000 for Wipro, and similar numbers for the others.
An analysis indicates that these companies require approximately 2,200 to 3,000 employees for every billion in revenue.
Assuming a collective growth of 5%, an additional 1 lakh employees would be needed.
Accounting for a 20% overseas workforce, the effective employee base reduces to about 16.4 lakh, leading to a projected requirement of 3 lakh new hires, factoring in attrition and growth.
Recent reports suggest a 10% increase in hiring, with an overall projected increase of 23-24%, highlighting significant growth trends in the industry’s hiring landscape, particularly within campus recruitment efforts expected to add up to 2.5 lakh employees.
AI and Emerging Technologies to Drive Demand
The demand for AI and cybersecurity expertise is expected to grow, prompting companies to invest in upskilling their workforce.
Wipro CTO Sandhya Arun predicts rapid advancements in AI and other technologies, pushing businesses to adapt and innovate.
Specialised tech roles are projected to grow by 30-35%, and overall IT job opportunities could increase by 15-20% across industries.
Experts believe that hiring across GCCs and IT services will provide much-needed relief to job seekers.
With companies adjusting to new market conditions and technological shifts, the IT job market is set for a much-needed recovery in 2025.
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