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AI, cyber security & data science lead job growth trends for 2025

Beyond Tier 1 cities, Tier 2 and Tier 3 towns are becoming key players in the IT sector’s growth

AI, cyber security & data science lead job growth trends for 2025
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The year 2024 marked a pivotal chapter for the Indian IT sector, influencing domestic and global economies, advancing technology, and reshaping workforce trends. Expected to contribute 10% to India’s GDP by 2025, the IT industry is on a steady path of growth, with workforce expansion playing a vital role. Reflecting on 2024, the sector saw a 17% increase in new job opportunities, fueled by digital transformation and growing demand for specialized roles in emerging technologies. After a slow start in the first half of the year, the industry gained momentum in the latter half. Looking ahead to 2025, this positive trend is expected to continue, with an average 20% increase in demand for roles such as application developers, software engineers, DevOps engineers, and experts in AI, machine learning, and cybersecurity.

Artificial Intelligence (AI), a major trend in 2024, is set to grow even further in 2025. The AI sector is poised for significant expansion, with high demand for data analysts, engineers, and scientists. The Generative AI (Gen-AI) segment alone is expected to create one million jobs by 2028, contributing substantially to India’s economy. Salaries for roles like Generative AI engineers, algorithm specialists, and AI security experts are projected to rise by 25–30% for mid-level professionals, reflecting the growing value of these skills. This surge in hiring is set to drive new projects, strengthen digital infrastructure, and keep up with technological advancements. Industries such as Global Capability Centers (GCCs), which have added over 600,000 jobs since 2018, are projected to employ 2.5 to 2.8 million professionals by 2030. Non-tech sectors, including BFSI and telecom, are also increasing their demand for tech professionals. As 2025 unfolds, upskilling will become even more critical. Large and mid-sized companies are expected to increase their training budgets by 15–20%, while individuals will actively seek opportunities to upgrade their skills for promising tech roles.

The Indian IT gig economy is also set for remarkable growth, expected to triple in size and employ 24 million people by 2030. A significant portion of this growth will occur in 2025 and 2026, with high-demand roles like AI engineers, data analysts, and cybersecurity professionals taking center stage. Interestingly, demand will be evenly distributed between Tier 1 and Tier 2 cities, with locations like Jaipur, Indore, and Coimbatore leading the way. This shift toward flexible talent solutions highlights the importance of gig workers in addressing specialized needs and adapting to project-based work.

Beyond Tier 1 cities, Tier 2 and Tier 3 towns are becoming key players in the IT sector’s growth. Companies are adopting flexible work models, creating more opportunities for job seekers to work closer to home. This is expected to drive a 35% increase in hiring across smaller cities by 2025. While the Indian IT sector has largely stabilized, it still faces challenges, such as a shortage of skilled talent in fields like AI and cybersecurity and uncertainties in the global economy. Initiatives like Digital India and Skill India provide valuable support, but additional efforts to enhance skills and balance costs are needed to navigate the next wave of technological transformation.

“The technology sector is poised for remarkable growth and will create an unprecedented demand for talent in AI, necessitating a transformation in India’s skill dividend. Companies must prioritize reskilling and upskilling to foster innovation and maintain a competitive edge in the AI-driven economy. The top five skills expected to define AI roles in 2025 will be AI, ML, Cloud Computing, Data Science and Cyber Security,” said Sunil Nehra, CEO - IT Staffing, FirstMeridian Business Services.

As global economies embrace AI, India’s workforce is projected to grow significantly, from 423.73 million in 2023 to 457.62 million by 2028, adding 33.89 million workers. A recent report by ServiceNow, highlights that this growth will be accompanied by 2.73 million new tech jobs across key sectors. With this shift, India faces an urgent need to upskill its talent, particularly in areas like AI-driven automation, data analytics, and machine learning, to meet industry demands and prepare the next generation for future-ready roles.

Hari Krishnan Nair, Co-Founder, Great Learning, mentioned how the hiring landscape is already witnessing green shoots of recovery, which is particularly good news for the class of 2025 and graduating batches stepping into the workforce. However, this recovery comes with a shift in expectations. “We foresee employers’ demands to increase, especially for freshers, who are expected to be equipped with cutting edge niche skills to adapt to evolving job roles. As AI becomes more prevalent, the traditional structure of entry-level positions is expected to change drastically, leaving many early-career professionals uncertain about their future in the workforce,” he said. In fact, the Great Learning Upskilling Trends Report 2024-25 sheds light on the growing concerns among entry-level professionals, with 71% expressing fears about job stability in 2025. This apprehension stems from the rapid advancements in AI, which are not only automating routine tasks but also fundamentally altering the nature of many roles. In response to this, fresh graduates and young professionals will need to enhance their skill sets by opting for online degrees and upskilling programs to meet the evolved demands of the job market. Investing in upskilling is the only way to keep yourselves relevant and ready for the shifts in the job market.

According to Dr Yajulu Medury, Vice Chancellor, Mahindra University, the Indian education sector in 2024 witnessed a significant evolution, characterized by technological integration, an emphasis on inclusivity, and the fostering of global partnerships. The implementation of hybrid learning models has facilitated enhanced connectivity between students and educators, thereby expanding access to quality educational resources across diverse geographical locations. “In 2025, we anticipate a stronger integration of emerging technologies such as AR, VR, among others for creating immersive and secure learning experiences. Sustainability and social impact will increasingly influence curriculum design, reflecting the global call for responsible innovation,” he said.

Dr Sanjay Gupta, Vice-Chancellor of World University of Design, believes emerging disciplines such as Digital Product Design, Interior Architecture, Communication Design, Gaming, Fashion, Films and Performing Arts have captured the imagination of students, signaling a shift toward non-traditional courses that align with evolving industry demands and creative aspirations. “Technological advancements in AI, VR, and AR have opened new frontiers, enabling us to redefine education for the modern era and create career opportunities in cutting-edge domains. In 2025, we foresee a continued surge in demand for high quality design education across diverse sectors, driven by global trends and the need for adaptable, creative thinkers,” he said.

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