logo
AI Adoption, GCCs Growth Push IT Sector Hiring to 16% in April: Report

AI Adoption, GCCs Growth Push IT Sector Hiring to 16% in April: Report

Entrepreneur12-05-2025
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
A recently released report noted that the Information Technology sector hiring expanded by 16 percent year-on-year in April 2025 in India due to factors such as "Artificial Intelligence (AI) adoption, cloud modernisation, and continued growth of Global Capacity Centres (GCCs)".
"India's IT sector is entering a new era of strategic growth," said V. Suresh, CEO, foundit. "We are witnessing a clear shift from scale-based hiring to a strong focus on specialized, future-ready skills. This transformation reflects India's broader vision to empower its youth for global leadership in science and innovation. While metros continue to drive demand for experienced talent, tier-2 cities are rapidly emerging as vibrant talent hubs," he added.
According to IBEF, India's corporate landscape is going through a shift, which is mainly driven by the rise in the number of GCCs. As per an EY report, India accounted for 55 per cent of the world's GCC centres in 2022 and 1,580 centres in 2023. "It is projected that the GCCs in India will cross 1,900 centres by 2025 and 2,400 centres by 2030," IBEF noted.
"GCCs played a significant role in this hiring growth, contributing over 1,10,000 new tech jobs in FY25, and ramping up demand for roles like data engineering, DevOps, and enterprise architecture," the report by job platform foundit stated.
AI adoption is also growing substantially, with multiple reports claiming as many as 60-70 per cent of businesses in India will integrate AI in their daily operations by the end of 2025 or early 2026.
The 'foundit Insight Tracker' report stated that while month-on-month hiring saw an 11 per cent drop due to "seasonality", consistent gains were being witnessed over the last three months.
"In 2022–23, the sector experienced a significant correction, with a 22 per cent decline, largely due to global economic uncertainties and tech spending rationalisation. The tide began to turn in 2023–24, with hiring picking up by 9 per cent as market conditions stabilised and enterprises resumed digital investments. The latest data for 2024–25 points to a strong 16 per cent growth, underscoring renewed optimism and sustained demand for digital talent," the report noted.
The report also claimed that startups providing IT services were hiring aggressively, thereby adding to overall expansion. "The IT hiring landscape has undergone a dynamic shift over the last five years. Startups, once cautious, have become aggressive recruiters, especially in AI and emerging tech, leading to fresher and specialist hiring. MNCs and GCCs, while continuing to anchor the market, have adapted with selective hiring and deeper engagement in tier-2 cities," the report stated.
Cities like Bengaluru and Mumbai recorded a 9 per cent year-on-year growth in hiring, while Delhi-NCR reported a 7 per cent growth, reflecting steady demand for tech talent. In these cities, mid- to senior-level professionals with 4–10+ years of experience remain in high demand.
In tier-2 cities such as Coimbatore, Vadodara and Jaipur, however, entry-level hiring is gaining more traction, as more and more satellite hubs are being created.
Globally, too, the employment opportunities in the IT sector are set to witness an expansion. "The recently signed India-UK Free Trade Agreement (FTA) will further enhance the global hiring prospects with India having secured significant commitments on digitally delivered services for Indian service suppliers, especially in professional services such as engineering and computer-related services, among others, opening up new job opportunities," said Madan Sabnavis, chief economist, Bank of Baroda.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Moody's warns US tariffs may hurt India's manufacturing push, slow growth
Moody's warns US tariffs may hurt India's manufacturing push, slow growth

Yahoo

timean hour ago

  • Yahoo

Moody's warns US tariffs may hurt India's manufacturing push, slow growth

(Reuters) -U.S. President Donald Trump's steep 50% tariffs on Indian imports could severely undermine India's manufacturing ambitions and slow economic growth, Moody's Ratings said on Friday. Trump imposed an additional 25% tariff on Indian goods on Wednesday, citing New Delhi's continued purchases of Russian oil, taking the total tariff to 50% — far higher than those levied on other Asia-Pacific countries. Moody's said India's real GDP growth may slow by around 0.3 percentage points from its current forecast of 6.3% for the fiscal year ending March 2026. "Beyond 2025, the much wider tariff gap compared with other Asia-Pacific countries would severely curtail India's ambitions to develop its manufacturing sector, particularly in higher value-added sectors such as electronics, and may even reverse some of the gains made in recent years in attracting related investments," the ratings agency said. Reducing Russian oil imports to avoid penalty tariffs could also make it harder for India to secure alternative crude supplies in sufficient quantities, Moody's said. A larger import bill would widen the current account deficit, especially amid weaker tariff competitiveness that could deter investment inflows. "We expect there will likely be a negotiated solution that falls between the two scenarios described above," Moody's said. "The magnitude of the drag on growth from tariff obstacles will influence the government's decision to pursue a fiscal policy response, although we anticipate the government will adhere to its focus on gradual fiscal and debt consolidation." The Reserve Bank of India (RBI) kept its key rates unchanged as expected on Wednesday and retained its "neutral" policy stance following a surprise 50-basis-point rate cut in June. Global trade uncertainties, fueled by the U.S. tariffs, have also unsettled foreign investors. Foreign portfolio investors have sold $900 million worth of Indian equities so far in August, after $2 billion in outflows in July. India's benchmark equity indices — the Nifty 50 and the Sensex — fell 2.9% in July and are down 0.7% so far in August, as investor anxiety rises amid escalating trade tensions.

Rupee logs worst losing streak in 6 months on US tariff woes; RBI caps damage
Rupee logs worst losing streak in 6 months on US tariff woes; RBI caps damage

Yahoo

time4 hours ago

  • Yahoo

Rupee logs worst losing streak in 6 months on US tariff woes; RBI caps damage

By Dharamraj Dhutia MUMBAI (Reuters) - The Indian rupee ended lower for a fifth straight week, its biggest consecutive weekly drop in six months, as trade tensions between India and the United States escalated following President Donald Trump's call for new tariffs on Indian goods. The rupee closed marginally higher at 87.6550 against the U.S. dollar, from 87.7025 on Thursday. The currency opened at 87.5600 and reached an intraday high of 87.5350, supported by unwinding of long dollar positions in the NDF market. Dollar bids, primarily from oil importers, pushed the USD/INR higher after initial lows, traders said. For the week, the rupee eased 0.1%, following a 1.2% drop last week, and has depreciated nearly 3% over the past five weeks. Rising pressure on the rupee was driven by India's position among the hardest-hit countries in Trump's trade offensive, including a new 25% tariff on Indian goods. The move places India alongside Brazil, facing the steepest import duties, unsettling markets concerned about the impact on capital flows and investor sentiment towards Indian assets. Fears of a record low in the currency prompted the Reserve Bank of India to intervene almost daily, preventing a deeper slide, traders said. The RBI resumed intervention in the NDF market to manage rupee volatility, four bankers told Reuters. Market participants expect another drop in foreign exchange reserves that saw a decline of more than $9 billion in week ended August 1, indicating intervention in the spot market. Meanwhile, some remain hopeful that a resolution would be achieved in coming period. Looking at the recent history, there is a high probability that the U.S. lowers tariffs in coming weeks or months and this could lead to a relief rally in Indian markets, as and when it happens, said Nishit Master, portfolio manager at Axis Securities PMS. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

India faces tough choices under US tariff pressure
India faces tough choices under US tariff pressure

News24

time5 hours ago

  • News24

India faces tough choices under US tariff pressure

• For more financial news, go to the News24 Business front page. India faces an ultimatum from the United States with major political and economic ramifications both at home and abroad: end purchases of Russian oil or face painful tariffs. Prime Minister Narendra Modi, leader of the world's most populous nation and its fifth-biggest economy, must make some difficult decisions. US President Donald Trump has given longstanding ally India, one of the world's largest crude oil importers, three weeks to find alternative suppliers. Levies of 25 percent already in place will double to 50 percent if India doesn't strike a deal. For Trump, the August 27 deadline is a bid to strip Moscow of a key source of revenue for its military offensive in Ukraine. "It is a geopolitical ambush with a 21-day fuse", said Syed Akbaruddin, a former Indian diplomat to the United Nations, writing in the Times of India newspaper. How has India responded? New Delhi called Washington's move "unfair, unjustified and unreasonable". Modi has appeared defiant. He has not spoken directly about Trump but said on Thursday "India will never compromise" on the interests of its farmers. Agriculture employs vast numbers of people in India and has been a key sticking point in trade negotiations. It all seems a far cry from India's early hopes for special tariff treatment after Trump said in February he had found a "special bond" with Modi. "The resilience of US-India relations... is now being tested more than at any other time over the last 20 years," said Michael Kugelman, from the Asia Pacific Foundation of Canada. What is the impact on India? Russia accounted for nearly 36 percent of India's total crude oil imports in 2024, snapping up approximately 1.8 million barrels of cut-price Russian crude per day. Buying Russian oil saved India billions of dollars on import costs, keeping domestic fuel prices relatively stable. Switching suppliers will likely threaten price rises, but not doing so will hit India's exports. The Federation of Indian Export Organisations warned that the cost of additional US tariffs risked making many businesses "not viable". Urjit Patel, a former central bank governor, said Trump's threats were India's "worst fears". Without a deal, "a needless trade war" would likely ensue and "welfare loss is certain", he said in a post on social media. What has Modi done? Modi has sought to bolster ties with other allies. That includes calling Brazilian President Luiz Inacio Lula da Silva on Thursday, who said they had agreed on the need "to defend multilateralism". Ashok Malik, of business consultancy The Asia Group, told AFP: "There is a signal there, no question." India's national security adviser Ajit Doval met with Vladimir Putin in Moscow, saying the dates of a visit to India by the Russian president were "almost finalised". Modi, according to Indian media, might also visit China in late August. It would be Modi's first visit since 2018, although it has not been confirmed officially. India and neighbouring China have long competed for strategic influence across South Asia. Successive US administrations have seen India as a key partner with like-minded interests when it comes to China. "All those investments, all that painstaking work done by many US presidents and Indian prime ministers, is being put at risk," Malik said. "I have not seen the relationship so troubled since the early 1990s, to be honest. I'm not saying it's all over, but it is at risk." Can Modi change policy? Modi faces a potential domestic backlash if he is seen to bow to Washington. "India must stand firm, put its national interest first," the Indian Express newspaper wrote in an editorial. Opposition politicians are watching keenly. Mallikarjun Kharge, president of the key opposition Congress party, warned the government was "disastrously dithering". He also pointed to India's longstanding policy of "non-alignment". "Any nation that arbitrarily penalises India for our time-tested policy of strategic autonomy... doesn't understand the steel frame India is made of," Kharge said in a statement. However, retired diplomat Akbaruddin said there is still hope. New Delhi can be "smartly flexible", Akbaruddin said, suggesting that could mean "buying more US oil if it's priced competitively, or engaging Russia on the ceasefire issue".

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store