India’s Tech Job Market Is Evolving Fast—Here’s Why Gen AI Skills Are at the Heart of It

22 April, 2025
9 mins read
India’s Tech Job Market Is Evolving Fast—Here’s Why Gen AI Skills Are at the Heart of It

India's technology industry is undergoing a quiet revolution, and it is not taking place in boardrooms or gleaming conference halls.  It's taking place across hundreds of Global Capability Centers (GCCs), gradually transforming the country from a delivery hub to an innovation powerhouse.

 At the heart of this shift is the rapid growth of Generative AI (Gen AI) skills, which are not only in demand but are redefining what hiring looks like in 2025 and beyond.

A recent report on India's GCC Tech Talent Landscape reveals a 32% annual increase in Gen AI and related tech skills across the Indian GCCs.  That number is more than just impressive; it is a signal.  A sign that the digital economy is maturing and that businesses' hiring and operating practices are rapidly changing.

But Gen AI is just the beginning.

The Numbers That Say It All

The GCC ecosystem in India has expanded dramatically over the last year.  With over 1,800 GCCs now active across the country, and over 120 new ones established in the last year alone, the pace is undeniable.  This expansion created approximately 180,000 new jobs, resulting in a 17% year-on-year increase in the GCC workforce.

Looking ahead, the Indian GCC market is expected to be worth between USD 99 and 105 billion by 2030.  The workforce is estimated to be over 2.4 million professionals.

This expansion is not just about quantity; it is also about the breadth and complexity of the roles being created.  As businesses transition to AI-first and cloud-native infrastructures, they are investing heavily in skills such as cybersecurity, platform engineering, and advanced UI/UX design.

Here's a look at the most in-demand roles and their growth rates:

  • Generative AI: 32%.

  • Platform engineering and site reliability engineering (SRE): 26%

  • UI/UX Design: 25%.

  • Cloud and Infrastructure Engineering: 14%.

These are not supporting roles. These are the primary drivers of digital transformation across sectors.

What’s Fueling the Talent Rush?

Several key trends are influencing how GCC countries hire talent in India:

  1. 1.Digital-First Mindset: Companies are shifting from traditional IT support to innovation-driven delivery models.  They require individuals who can think creatively, develop scalable digital platforms, and solve problems in real time.

  2. 2. Rise of Specialized Roles: Generalist developers are no longer sufficient.  Companies seek professionals with domain expertise in cybersecurity, cloud cost optimization (FinOps), and AI model governance.

  3. 3. Shift to Skills-Based Hiring: More companies are shifting away from degree-based hiring models.  The new gold standard is skills-based hiring, with a strong emphasis on practical, demonstrable abilities.

  4. 4. Compensation Premiums for Niche Skills: As demand grows and supply struggles to keep up, niche roles command significant salary premiums—up to 50% in some cases.

Key Sectors Driving the Demand

Digital acceleration is particularly strong in industries such as:

  • Banking, Financial Services and Insurance (BFSI)

  • Retail and E-Commerce

  • Telecom

  • Manufacturing

These industries are rapidly adopting technologies such as artificial intelligence (AI), cloud computing, and the Internet of Things (IoT), increasing the demand for workforce management software, talent acquisition strategies, and robust HR outsourcing services.

For example, BFSI firms are actively seeking Gen AI developers to automate risk modeling and fraud detection.  Retailers are rethinking personalization with real-time AI insights, and manufacturers are incorporating predictive analytics into their supply chains.

The Tier-2 City Advantage

While major metros like Bengaluru and Hyderabad continue to dominate the strategic hiring landscape, tier-2 cities are quietly emerging as the new engines of talent growth.  Cities such as Kochi, Coimbatore, Indore, and Jaipur are experiencing an increase in demand for operations-focused and mid-tier engineering positions.

These locations are known for their domain-specific talent in these domains: 

  • Governance, Risk, and Compliance (GRC)

  • Cloud Support and Maintenance

  • Medtech Software Engineering

These cities offer cost savings, lower attrition rates, and high-quality engineering talent, making them appealing to companies looking to expand their global workforce solutions.

The Talent Gap You Can’t Ignore

The surge in demand, however, has revealed a major challenge: supply is struggling to keep up.

Here are some of the most significant gaps observed:

  • Cloud FinOps Specialists: 45% gap.

  • AI Observability Engineers: 35% gap.

  • Blockchain Developers: 30% gap.

These gaps are about more than just talent availability; they indicate a need for ongoing skill development, employee training, and smarter workforce analytics.  Companies must shift from reactive hiring to proactive talent pool development if they want to stay competitive.

Compensation Trends and What They Mean

Scarcity brings a price premium.  Compensation for in-demand roles has increased:

  • AI and data science engineers now earn 25-40% more than their counterparts in traditional IT positions.

  • Salaries for roles in Zero Trust Security and FinOps are increasing by up to 50%.

  • Because of the increasing demand for user-centric design and scalable architectures, UI/UX and platform engineering specialists are receiving above-market compensation.

These changes emphasize the importance of employee retention strategies.  Today's talent is looking for more than just a paycheck; they want opportunities for growth, flexibility, and impact.  Companies that invest in leadership development programs, employee engagement solutions, and upskilling initiatives will outperform their competitors.

What Employers Should Focus On Next

Here are a few key areas that businesses can focus on to navigate the changing hiring landscape.

  1. 1. Upskilling Over Poaching: Rather than competing in a saturated talent market, build capacity from within.

  2. 2. Lean Into Automation: Use recruitment automation software to streamline hiring and shorten time-to-fill for specialized positions.

  3. 3. Expand Hiring Models: To gain access to talent from all over the world, embrace freelance hiring and remote work.

  4. 4. Enhance Employer Branding: To attract Gen Z and millennial professionals, highlight your purpose, flexibility, and impact.

  5. 5. Use Data to Predict Needs: Use workforce analytics solutions to better understand demand patterns and plan.

Why Swissmote is the Ultimate Hiring Solution for 2025

  1. 1. AI-Driven Recruitment
    Swissmote uses AI to streamline the hiring process, ensuring that only the best candidates advance to the interview stage.  Candidates are pre-screened and tested using video assignments, which provides a more efficient and accurate evaluation.

  2. 2. Faster, Smarter Hiring
    Swissmote's unique process allows it to deliver top-tier talent faster than traditional agencies, making it ideal for companies looking to grow quickly.

  3. 3. Proven Success
    Swissmote has an impressive 92% success rate, demonstrating its ability to match businesses with the right talent every time.

  4. 4. Global Talent Access
    Whether you're looking for full-time employees or freelancers, Swissmote provides access to a global network of skilled professionals.

  5. 5. Cost-Effective & Flexible Pricing
    Swissmote's flexible, project-based pricing and recruitment fees are tailored to the needs of startups and SMEs, providing cost-effective solutions without long-term commitments.

Start your hiring journey with Swissmote and discover the full range of services. For more insights, visit the Swissmote blog and explore our FAQs.

FAQs

What are Global Capability Centers (GCCs)?

GCCs are offshore units set up by multinational corporations to manage IT, analytics, engineering, and other core business functions from India.

Why is Gen AI in such high demand?

It enables businesses to streamline decision-making, automate processes, and personalize customer experiences, making it a valuable asset across industries.

Which roles offer the highest salary premiums?

AI and Data Science roles, Zero Trust Security experts, and FinOps specialists are currently at the top of the compensation growth list.

Are Tier-2 cities ready for complex tech roles?

Yes.  They are emerging as key hubs for specific domains such as MedTech, cloud support, and governance, aided by a growing pool of specialized talent.

What hiring strategy works best today?

Skills-first hiring, combined with employee training and flexible hiring models such as freelance or remote contracts, has proven to be the most effective.

Final Takeaway

India's tech hiring isn't just increasing; it's evolving. The rapid rise in Gen AI, platform engineering, and cloud-native skills indicates a more fundamental shift in how businesses build, operate, and scale.

For businesses, this is an opportunity to reconsider how they hire, where they hire, and what they value in talent. For professionals, it's an opportunity to reskill, specialize, and catch the next wave of digital disruption.

This is not just a technical story. It's a talent story—and it's only the beginning.

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