India's IT Job Market Expected to Create 450,000 Positions by 2025
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Synopsis
The Indian IT hiring sector is set to expand by 7-10% in early 2025, generating approximately 4-4.5 lakh jobs. Despite global uncertainties, the outlook is optimistic, with a focus on digital transformation and emerging technologies.
Key Takeaways
- IT hiring projected to increase by 7-10%
- 4-4.5 lakh new jobs expected in 2025
- Focus on digital transformation and new technologies
- Strong demand for entry-level roles
- High compensation for AI/ML and data roles
New Delhi, April 18 (NationPress) The IT hiring landscape in India is anticipated to expand by 7-10 percent during the initial half of 2025, resulting in the creation of approximately 4-4.5 lakh new positions throughout the year, industry experts reported on Friday.
India's IT sector concluded the last quarter of FY25 on a stable trajectory, registering a year-on-year revenue growth of 1-3 percent, indicating a phase of cautious growth amid shifting global priorities.
“This trend underscores that companies are adopting a more focused strategy regarding global technology investments, yet the demand for digital transformation remains robust,” stated Sunil Nehra, CEO of IT Staffing at FirstMeridian Business Services.
Investments in AI/ML, cloud computing, data engineering, and automation have shown consistency, reflecting a long-term confidence in cutting-edge technologies. This sustained interest in new-age technologies has significantly shaped hiring patterns.
“Recruitment across various regions in India is expected to witness a gradual increase,” Nehra added, noting that the outlook for hiring fresh graduates in FY26 is optimistic, indicating a strong appetite for entry-level positions.
Despite ongoing global challenges, FY25 has represented a recovery period for leading Indian IT companies, following the unprecedented headcount reduction of FY24.
However, hiring remained cautious in Q4 FY25, mirroring ongoing reservations regarding client expenditures and persistent macroeconomic challenges.
As per Sachin Alug, CEO of NLB Services, attrition rates have stabilized industry-wide at around 13-15 percent, suggesting a more balanced and evolving talent ecosystem.
“Numerous organizations have announced intentions to recruit over 10,000 freshers in FY26, indicating enduring confidence despite immediate hurdles,” he remarked.
Significant investments are being channeled into AI and Generative AI, bolstered by extensive upskilling initiatives across service sectors. Cloud modernization, cybersecurity, and data engineering remain essential capabilities, with a strong emphasis on consulting-driven, results-oriented engagements.
“Positions such as AI/ML Engineers, Data Scientists, Cloud Architects, DevOps Engineers, and ESG Analysts are in high demand, often attracting a 8-10 percent premium in remuneration,” Alug noted.
