Emerging Technologies to Propel Job Growth by 20% in 2025

According to a recent report from human resources (HR) platform FirstMeridian Business Services, the Indian IT sector is poised for substantial growth, with emerging technologies expected to generate a 20% increase in new job opportunities in 2025. This follows a successful 2024 when India’s IT and tech ecosystem experienced a 17% surge in employment, driven by rapid digital transformation and growing demand for specialized tech roles.

Rebound in the IT Sector

Sunil Nehra, CEO of IT Staffing at FirstMeridian Business Services, noted that the sector regained momentum after a slow start in the first half of 2024. As the industry prepares for 2025, there is anticipation of continued growth in key roles such as application developers, software engineers, DevOps engineers, and specialists in artificial intelligence (AI), machine learning (ML), and cybersecurity.

AI as a Growth Driver

AI emerged as a dominant trend in 2024 and is expected to play an even more significant role in 2025. Nehra highlighted the rising demand for data-related roles, including analysts, engineers, and scientists. He projected that the generative AI (Gen-AI) industry alone would create around 1 million new job opportunities by 2028, significantly contributing to the nation’s GDP. Salaries for Gen-AI positions, such as generative AI engineers, algorithm engineers, and AI security specialists, are expected to see a 25-30% increase, especially in mid-level roles.

Expansion and Demand Across Sectors

The growth in IT hiring is set to support new projects, bolster digital infrastructure, and keep pace with technological advancements. Global capability centers (GCCs) have already created over 600,000 jobs between 2018-19 and 2023-24. By 2030, these centers will employ 2.5 to 2.8 million professionals. Additionally, sectors like banking, financial services, insurance (BFSI), and telecommunications are expected to increase their intake of IT professionals in 2025.

Focus on Upskilling

As the IT landscape evolves, there will be a significant emphasis on upskilling to build a robust talent pool. Nehra emphasized that both large enterprises and mid-sized companies are likely to increase their upskilling budgets by 15-20% in 2025. Individuals must also continue investing in personal development to prepare for new-age tech roles.

Growth of the IT Gig Economy

The Indian IT gig economy is projected to triple, employing 24 million people by 2030. This growth will be evenly distributed between tier I and tier II cities, reflecting a shift toward more flexible talent solutions. Companies increasingly rely on gig workers for their specialized expertise and adaptability, driving hiring trends toward niche technical roles and project-based engagements.

Challenges and Strategic Initiatives

Despite its promising outlook, the Indian IT sector faces challenges, including a talent shortage in emerging fields like AI and cybersecurity and the impact of global economic uncertainties. Nehra emphasized the need for ongoing initiatives such as Digital India and Skill India to address these challenges. He also highlighted the importance of further strategies to upskill talent and enhance value amid cost pressures to navigate the next phase of technological transformation.

As the Indian IT sector continues to grow and evolve, it is set to play a pivotal role in the global tech landscape, offering vast opportunities for professionals and businesses alike.

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