India’s ITeS Sector to Grow 20% in 2025, AI and Cloud Lead Demand

Team Finance Saathi

    25/Mar/2025

What's covered under the Article:

  1. India’s ITeS sector to witness 20% job growth in 2025, led by AI and cloud.

  2. DevOps with AWS sees 10% salary hikes, while Python remains highest paying.

  3. Bengaluru leads as the top tech hub, with Tier-2 cities emerging in AI, cybersecurity.

India’s Information Technology and Enabled Services (ITeS) sector is set to experience a 20% growth in job opportunities in 2025, fueled by the adoption of emerging technologies and the widespread acceptance of remote work models, according to the Instahyre Tech Salary Index 2025. The report, based on insights from 42,000 anonymized candidate profiles and 11,000 recruiter interactions, highlights that demand for artificial intelligence (AI), cybersecurity, and cloud computing roles is expected to surge by 75% over the coming year.

Remote Work and Gig Economy Driving Growth

The gig economy and remote work models continue to reshape the ITeS landscape, contributing 10% to the overall growth forecast for 2025. With the flexibility offered by these models, 40% of the workforce in the ITeS sector will require upskilling to remain competitive and aligned with technological advancements.

Key Job Roles in High Demand

The AI, cybersecurity, and cloud computing segments are expected to dominate job creation in 2025, with rising demand across various experience levels.

  • AI Engineers: Increased adoption of AI in sectors like healthcare, finance, and retail is driving the need for AI experts.

  • Cybersecurity Analysts: With rising cyber threats and the growing emphasis on data protection, cybersecurity professionals are in high demand.

  • Cloud Architects and Engineers: Migration to cloud platforms has led to a surge in demand for cloud experts, particularly those with Amazon Web Services (AWS) and Microsoft Azure certifications.

Salary Trends and Shifts Across Experience Levels

The report also highlights notable salary trends and shifts across different experience levels:

  • DevOps professionals with AWS expertise witnessed a 10% increase in their salaries in 2025.

  • Frontend developers with 0-5 years of experience faced a decline of Rs. 1.5 lakh per annum (LPA) (US$ 1,750.84).

  • Experienced frontend developers (6+ years) enjoyed a salary hike of Rs. 4 LPA (US$ 4,668.90).

Python and Java Dominate Backend Skill Salaries

In the backend domain:

  • Python remains the highest-paying skill, with salaries doubling every five years of experience.

  • Java professionals have seen their salaries increase fivefold for those with over 10 years of experience, making backend roles increasingly lucrative.

Bengaluru Leads as India’s Top Tech Hub

Bengaluru continues to dominate India’s tech ecosystem, accounting for 35% of the country’s tech workforce. The city remains the preferred destination for top tech talent and companies looking to scale operations.

Following Bengaluru, other prominent tech hubs include:

  • Delhi-NCR and Hyderabad: Each accounts for 20% of India’s tech workforce.

  • Pune: Contributes 15%, with a growing emphasis on AI and enterprise software.

  • Chennai: Accounts for 10% of India’s tech workforce, with notable demand for software engineers and cloud professionals.

Tier-2 Cities Emerging as Tech Hubs

Interestingly, Tier-2 cities such as Chandigarh, Jaipur, and Indore are emerging as promising technology hubs. These cities are witnessing a surge in demand for AI and cybersecurity roles, attracting investments and creating a new wave of employment opportunities outside the metro cities.

Upskilling and Reskilling Critical for Future Growth

The report emphasizes the importance of upskilling and reskilling for India’s tech workforce. As 40% of employees in the ITeS sector are expected to require significant skill upgrades, courses in AI, cloud technologies, and cybersecurity are likely to become essential to maintain employability in the evolving tech landscape.

Key Insights from Industry Leaders

Industry experts believe that the continued growth of India’s ITeS sector is a testament to the resilience and adaptability of the country’s tech talent. According to Sharat Chandra, a leading tech evangelist, “The acceleration of AI, cloud computing, and cybersecurity adoption in India is driving unprecedented job creation and fostering a dynamic ecosystem where tech professionals need to stay ahead of the curve by constantly upgrading their skills.”

India’s ITeS sector is poised for remarkable growth in 2025, with new job opportunities, higher salaries for in-demand roles, and the emergence of Tier-2 cities as thriving tech hubs. As remote work and gig economy models redefine traditional employment structures, upskilling and reskilling will be crucial for professionals looking to capitalize on these opportunities.


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