AI Jobs In India: An Opportunity For Growth Or Marker For Potential Slowdown? Let’s Find Out
The outlook for AI tech jobs in India is overwhelmingly positive, with growth driven by tier-1 and 2 cities, rising demand for specialised skills, and collaborative approach to closing the skills gap.
By Anesh Korla
If you would like to understand when a particular technology, solution, or concept escapes the hype cycle, you only need to pay attention to when it becomes a part of the everyday vocabulary. Googling is now a verb, people have been Shazaming music for several years now, and we call for an Uber or an Ola whenever we need a cab.
AI, at present, is undergoing a similar evolution as it breaks from the hype cycle, with “ChatGPT it” becoming a term used for finding answers. It is also driving a transformative shift within the Indian technology landscape, unlocking a massive opportunity that could define the future of the country’s IT/ITeS industry.
Mapping Evolving Dynamics Of India’s Tech Sector
The past few years have seen a historic slowdown, with layoffs across all major technology companies. This, after decades of unbridled growth, came as a shock to the industry.
The global tech landscape has changed at a rapid pace, and this evolution is poised to accelerate as new-age technologies such as GenAI become more firmly embedded in day-to-day lives. To continue in its position as a global tech hub, India’s IT sector will need to evolve faster than the global market and stay ahead of the curve.
And there are signs that it is beginning to do so. Recent reports estimate that, after the recent rounds of downsising, tech hiring will increase by around 8-10 per cent in FY25. The major focus of this hiring is expected to be in the fields of new-age tech, such as GenAI, machine learning, natural language processing, computer vision, blockchain, and data science. Companies across sectors are increasingly seeking professionals who can navigate the complexities of these technologies to enable them to drive innovation and maintain an edge.
India & The World: Rise Of GCCs & AI-Aligned Tech Jobs
This demand will only increase as more and more companies around the world continue to invest in India as the preferred destination for offshore technology and talent. The country, already home to around 1,600 global capability centres (GCCs) employing over 1.66 million tech professionals, can expect another 800 new GCCs to go online by the end of this decade.
India’s urban centres, particularly tier-1 and 2 cities, are poised to be the driving forces behind this AI-driven job growth. Cities like Bengaluru, Hyderabad, Pune, and Chennai are rapidly evolving into AI hubs, attracting investments from global tech giants and fostering vibrant startup ecosystems. These cities offer a confluence of factors – established tech infrastructure, a pool of skilled professionals, and an existing culture of innovation – that make them ideal for tech investment. Meanwhile, other emerging tech hubs in tier-2 cities, such as Kolkata, Chandigarh, Ahmedabad, and Vadodara, are also staking their claim as viable alternatives to tier-1 centres with their growing talent pools and much lower cost of living.
Future Of Tech Jobs: Closing The Skills Gap
This increasing demand for AI-related skills comes with a major challenge: the need for continuous learning, upskilling, and reskilling. As AI technologies continue to evolve at breakneck speed, professionals must stay ahead of the curve, constantly updating their skills to remain relevant in an ever-changing job market.
A recent employability assessment report highlighted this need by underscoring how, of the engineering graduates joining the Indian workforce every year, less than 4 per cent were equipped to undertake a software-related job. NASSCOM, too, estimates the current digital skills gap to widen to 28 per cent by 2028.
The latest developments within the Indian tech sector indicate that this issue has not gone unnoticed. Top tech firms have ramped up initiatives to train their workforce on AI and related technologies, with the focus shifting from maintaining large benches to optimal utilisation and reskilling, particularly of newer talent. There are significant corporate investments outlined to not only upgrade existing AI capabilities but also to create greater AI readiness across the workforce.
However, this shift toward continuous AI-related skilling should not be the sole responsibility of the tech industry. Stakeholders from all domains, from academia to policy making, must come together to develop collaborative solutions to address the growing skills gap.
Take, for instance, the partnerships between universities, coding schools, and technology companies. Such collaborations can create a pipeline of skilled talent, equipped with the competencies and knowledge required to thrive in an AI-driven economy. Coding schools and bootcamps have already stepped up to the plate and are offering specialised courses in AI and machine learning, while universities and colleges are partnering with top tech experts to integrate AI and related technologies into their curricula with application-focused courses.
These efforts, while commendable, must be scaled up to meet the growing demand for AI talent - and it is encouraging to see that supportive policy frameworks and corporate investments are already being implemented to do so. There are already several key policy measures launched to promote AI research and development, such as the National Strategy for Artificial Intelligence and the National Programme on Artificial Intelligence (NPAI) Skilling Framework. Incentives for companies to invest in AI, coupled with more policies that encourage innovation, can help maintain and strengthen this momentum.
The outlook for AI tech jobs in India is overwhelmingly positive, with growth driven by tier-1 and 2 cities, rising demand for specialised skills, and a collaborative approach to closing the skills gap. However, challenges remain, particularly in ensuring that this growth is inclusive and sustainable. With the right mix of policy support, corporate investments, and a focus on continuous learning, India is well-positioned to capitalise on the AI revolution, ensuring that the growth in AI tech jobs is not just a fleeting trend but a lasting transformation.
(The author is EVP and COO, Encora)
Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd.
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