India's IT sector has witnessed a remarkable 16% year-on-year (YoY) growth in hiring during April 2025, marking a significant rebound in the industry’s recruitment landscape. This surge is attributed to multiple factors, including the increasing adoption of artificial intelligence (AI), the ongoing cloud modernisation efforts by various companies, and the growing presence of Global Capability Centers (GCCs), which have become pivotal in driving the demand for skilled professionals.

Role of Global Capability Centers in Hiring Surge

GCCs have emerged as a driving force behind this hiring boom, contributing over 1.1 million new tech jobs in FY25. These centers are becoming hubs of innovation, responsible for the development of cutting-edge technologies and solutions that cater to global markets. Roles in data engineering, DevOps, and enterprise architecture have seen particularly high demand, highlighting the sector’s focus on technological advancement.

As GCCs expand across the country, they are actively seeking professionals with niche expertise, fueling the demand for high-level skills in areas such as cloud computing, cybersecurity, and AI/ML. This has led to over 95% of job postings in the IT sector being related to these areas, emphasizing their growing importance in the job market.

Skill-Based Hiring Dominates

One of the most notable trends in the current hiring landscape is the continued focus on skill-based hiring, with 62% of IT employers prioritising practical expertise over formal educational qualifications. This shift is in line with the evolving needs of the industry, where the demand for hands-on experience and specialised technical skills far outweighs the importance of traditional degrees.

Skills in AI/ML, cloud computing, cybersecurity, and data analytics are among the most sought-after by IT companies. This trend indicates a broader industry shift towards creating highly specialised teams capable of developing advanced technologies that can drive digital transformation across various sectors.

Geographical Variations in Hiring

Hiring trends also show geographical variations, with cities like Coimbatore, Ahmedabad, and Baroda recording notable growth in tech job postings. Coimbatore saw an impressive 40% YoY increase in hiring, a clear indication of the city's rising importance as a technology hub. Factors like the shift to hybrid work models and the cost advantages of these cities are contributing to the uptick in tech job growth outside the traditional metro hubs.

In contrast, major metro cities such as Bengaluru, Mumbai, and Delhi NCR continue to lead the hiring trends for leadership and specialist roles, although their YoY growth rates were relatively modest at 9%, 9%, and 7%, respectively. These cities remain dominant in terms of attracting top talent, particularly in senior management and specialist positions, due to the higher concentration of large IT firms and global corporations.

Skill Development and Future Outlook

The emphasis on skill-based hiring has led to a greater focus on upskilling and reskilling the workforce. IT professionals are increasingly seeking to improve their technical capabilities through certifications and training in cloud technologies, AI/ML, and cybersecurity. This trend not only benefits job seekers but also ensures that companies remain competitive in the face of rapid technological advancements.

The IT sector’s growth trajectory is expected to continue, with a robust recovery and a positive outlook for the coming years. As more companies embrace digital transformation, the demand for skilled professionals in key areas like AI, cloud computing, and cybersecurity will likely remain high.

Conclusion:

The 16% YoY hiring growth in India’s IT sector signals a strong recovery and future expansion. The industry’s focus on AI, cloud modernisation, and the rise of GCCs has created a vibrant job market for tech professionals. As skill-based hiring becomes the norm, candidates with expertise in AI, ML, and cloud computing will continue to be in high demand. With the growing importance of hybrid work models and the rise of emerging tech hubs in cities like Coimbatore and Baroda, India’s IT sector is poised for continued growth and innovation.

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