The Indian IT hiring landscape is on the cusp of recovery in 2025, following a difficult year in 2024. The sector, which saw a decline in hiring activity, is now showing signs of growth, driven by technological advancements and improving economic conditions.
In 2024, the Indian IT sector experienced a 7 per cent reduction in hiring compared to the previous year. This decline was largely attributed to global uncertainties and broader macroeconomic challenges. Global Capability Centres (GCCs) played a significant role, accounting for over half of the tech job openings, but were unable to fully offset the downturn in the IT services sector.
Despite this overall contraction, certain areas of the industry demonstrated resilience. Demand for roles in Artificial Intelligence (AI) and Machine Learning (ML) increased by 39 per cent. Furthermore, hiring in Tier 2 cities surged by 48 per cent during the third quarter of 2024, indicating a shift towards geographical diversification away from traditional tech hubs. Hiring for mid- to senior-level professionals also rose by 35 per cent, reflecting a preference for experienced candidates amid economic fluctuations.
The hiring outlook for fresh graduates remained relatively subdued, with modest growth rates of between 2 and 15 per cent across various tech sectors. Many companies chose to delay onboarding campus hires due to uncertainties surrounding deal flows, a situation influenced by the global political climate.
Looking ahead, there is optimism regarding the recovery of the IT sector. As large projects are expected to resume in early 2025, hiring for fresh graduates is likely to increase significantly. The demand for specialised roles, particularly in AI and cybersecurity, is expected to surge by 30-35 per cent.
Projections indicate a 15-20 per cent growth in job opportunities across various industries, with the IT sector set to rebound. This recovery is expected to provide new opportunities and challenges as companies adapt to evolving technological landscapes and market needs.