Tech hiring in FY25: 40% rise in demand for freshers, 30% salary hikes

FY25 is expected to see a 40 per cent rise in fresher hiring, driven by artificial intelligence, machine learning, cloud technologies, and upskilling

A 40 per cent jump in fresher hiring and salaries up to 30 per cent above industry standards are set to define the tech recruitment landscape for FY25, according to the latest report by TeamLease Digital, a tech staffing and solutions provider. 

The report highlights a strong surge in demand across all experience levels, driven by the rapid adoption of artificial intelligence (AI), machine learning (ML), cloud technologies, and the critical need for skill development.

Surge in fresher hiring led by GCCs
 

The report identifies distinct hiring patterns across the tech sector. Global Capability Centres (GCCs) are leading the charge in hiring fresh talent, offering higher-than-average salaries for sought-after skills. GCCs are expected to increase fresher hiring by 40 per cent compared to the previous year.

 

The IT services sector, while maintaining a cautious outlook, anticipates a 20-25 per cent rise in fresher recruitment, with key demand areas being software development, data engineering, and cloud technologies.

Stable demand for mid-level roles
 

For mid-level roles, the demand remains steady. Positions such as project managers, data scientists, and cybersecurity experts continue to be in high demand, with salaries increasing by 7.89 per cent to 10.2 per cent compared to FY24. This reflects the need for professionals who can bring hands-on experience to optimise business operations.

 

Rise in senior management roles
 

Senior management roles, however, are seeing a major spike in demand, rising by 21 per cent from last year. Companies are prioritising expertise in data engineering, product management, and DevOps, with salary hikes ranging from 6.54 per cent to 10.8 per cent.

AI, ML, and automation drive skills demand
 

The rise of AI, ML, and automation has also reshaped hiring needs. The report notes that 69 per cent of data science job postings in 2024 required machine learning skills, and this trend is expected to continue in 2025. Skills in natural language processing (NLP) have seen a sharp increase in demand, rising from 5 per cent in 2024 to 19 per cent in 2025. Other sought-after skills include Python programming, ethical hacking, penetration testing, Agile Scrum Master certification, AWS security, and JavaScript.

 

Cloud technologies fuel hiring demand
 

The rapid migration to cloud infrastructures is another key driver of hiring demand. Roles related to cloud engineering, development, and architecture are seeing a surge as organisations accelerate their cloud adoption. Platform-specific certifications, particularly in AWS and Microsoft Azure, are increasingly becoming essential for tech professionals. By FY25, India is expected to need over two million cloud professionals to support this growth.

Upskilling: A priority for career progression
 

TeamLease Digital’s outlook also emphasises the importance of upskilling to bridge the talent gap. Alarmingly, 63 per cent of tech employees did not upskill last year, with 73 per cent citing a lack of time and 42 per cent pointing to insufficient managerial support as major barriers. Employees aspiring to move from junior to senior roles are encouraged to pursue certifications in cloud computing, data analytics, and cybersecurity, as these are now considered mandatory for career progression. Upskilling is not only critical for employees but is also seen as a cost-effective solution for companies to meet talent demands while equipping professionals with the necessary expertise for higher-level responsibilities.

 

Regional salary disparities shape the job market
 

The report further highlights the regional salary differences shaping the tech job market. Major hubs like Bangalore and Hyderabad continue to offer competitive salaries due to their status as innovation centres. However, companies are increasingly turning their attention to Tier-II towns, where the talent pool is growing in importance.

While cities like Kochi and Coimbatore offer lower compensation due to reduced competition, they are becoming attractive hiring grounds. Cost of living is another major factor driving salary disparities, with high expenses in cities like Bangalore and Delhi resulting in higher pay packages compared to places like Ahmedabad. Additionally, favourable government policies in cities like Hyderabad have attracted more tech companies, pushing salaries higher than in other regions.

Neeti Sharma, chief executive of TeamLease Digital, summarised the industry’s shift, stating, “The tech industry continues to transform at a rapid pace. To stay ahead, companies must align their talent strategies with technological advancements, particularly in AI and cloud computing. Investing in upskilling programs is not just an option but a necessity, enabling professionals to remain competitive in this dynamic environment. This alignment will be crucial for driving sustainable growth and innovation in the coming years.”