India has made substantial strides in cutting-edge technologies such as artificial intelligence (AI), machine learning (ML), blockchain, Internet of Things (IoT), robotic process automation (RPA), edge computing, and quantum computing. However, despite these advancements, a recent study by TeamLease Digital highlights a significant gap in the skill sets of Indian engineers. Shockingly, only 2.5% of the country’s engineers possess AI skills, and just 5.5% have basic programming abilities.
Reskilling: A Business Imperative
To address this critical skills shortage, 86% of Indian businesses are actively reskilling their IT workers. The study identifies key functional areas within the Indian tech ecosystem, including software development, cloud solutions, enterprise application management, project management, data management, cybersecurity, and system operations. These areas are pivotal for businesses aiming to remain competitive in a rapidly evolving digital landscape.
Salary Trends: A Growing Demand for Expertise
The study also sheds light on salary trends within the tech industry. For AI/ML engineers in Global Capability Centers (GCCs), starting salaries begin at Rs. 8.2 lakh per annum, with senior-level positions offering up to Rs. 43 lakh per annum for those with over eight years of experience. Entry-level IT product and service sector roles start at Rs. 9.7 lakh per annum, with potential growth up to Rs. 20.7 lakh per annum as experience increases.
Entry-level data engineering roles have seen a notable 12.07% year-on-year salary increase from FY24 to FY25. Mid-level product management professionals have enjoyed a 10.2% rise in compensation, while senior roles in data science and DevOps have seen nearly 11% growth. These trends underscore the increasing value of expertise in these critical areas as the industry continues to evolve.
Metro Cities Lead, Emerging Hubs Evolve
Metro cities such as Bengaluru, Gurgaon, Hyderabad, Delhi, Mumbai, and Chennai are leading in offering the highest salaries for tech job roles. Additionally, cities like Jaipur, Indore, and Coimbatore are emerging as new hubs, particularly in the domains of data science, product management, and data engineering. These cities are expected to become key centers for Global Capability Centers (GCCs) and data centers, although areas like cybersecurity and cloud computing are still in their early stages.
The Road Ahead: A $350 Billion Tech Industry by 2025
Commenting on the findings, Neeti Sharma, CEO of TeamLease Digital, highlighted that the Indian tech industry is projected to reach $350 billion in revenue by 2025. This growth is driven by significant investments in AI, machine learning, and blockchain, with emerging technologies like 5G and IoT set to redefine India’s tech landscape. With the rise of remote work and digital-first strategies, the adoption of cloud computing is expected to grow at a CAGR of 22% over the next five years, ensuring that India remains at the forefront of global technological advancements.
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