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

Entrepreneur

12-05-2025

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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.