India's IT Recruitment Sector Expected to Create 4.5 Lakh New Jobs in Early 2025

Synopsis

The Indian IT hiring sector is set to grow by 7-10% in the first half of 2025, with an expected addition of approximately 4-4.5 lakh jobs. Industry insights suggest sustained demand for digital transformation and emerging technologies, indicating positive hiring trends for fresh graduates and experienced professionals alike.

Key Takeaways

IT sector growth of 7-10% expected in H1 2025.
4-4.5 lakh new jobs projected.
Continued demand for digital transformation.
High demand for freshers and specific tech roles.
Stable attrition rates at 13-15% across the industry.

New Delhi, April 18 (NationPress) The IT recruitment sector in India is anticipated to expand by 7-10% during the first half of 2025, leading to the creation of approximately 4-4.5 lakh new positions, as indicated by industry experts on Friday.

India's IT industry concluded the fourth quarter of FY25 with a stable performance, showing a year-on-year revenue growth of 1-3%, reflecting a phase of measured growth amidst shifting global priorities.

"This trend indicates that companies are adopting a more focused strategy toward global technology investments, yet the demand for digital transformation continues to flourish," stated Sunil Nehra, CEO of IT Staffing at FirstMeridian Business Services.

Investment in AI/ML, cloud computing, data engineering, and automation remains consistent, demonstrating a long-term belief in emerging technologies. This sustained interest in modern technologies has influenced hiring patterns.

"Hiring across various regions in India is expected to see a gradual upward trend," noted Nehra, adding that the outlook for hiring freshers in FY26 is optimistic, indicating a robust demand for entry-level positions.

Despite ongoing global uncertainties, FY25 has marked a phase of recovery for major Indian IT companies, following the significant headcount reductions experienced in FY24.

However, hiring remained cautious in Q4 FY25, mirroring ongoing client spending hesitance and persistent macroeconomic challenges.

According to Sachin Alug, CEO of NLB Services, attrition rates have stabilized within the industry at an average of 13-15%, showcasing a more balanced yet evolving talent landscape.

“Numerous firms have also outlined plans to recruit over 10,000 freshers in FY26, signaling long-term confidence despite short-term hurdles,” he noted.

Significant investments are being channeled into AI and Generative AI, backed by extensive upskilling initiatives across service lines. Cloud modernization, cybersecurity, and data engineering remain fundamental capabilities, with a strong emphasis on consulting-led, outcome-focused engagements.

"Positions such as AI/ML Engineers, Data Scientists, Cloud Architects, DevOps Engineers, and ESG Analysts are in significant demand, often receiving a 8-10% compensation premium," stated Alug.