Navigating the Future of India’s Tech Sector: Insights from TeamLease Digital’s Report

As India’s technology sector continues to evolve at a breakneck pace, emerging as a global hub for innovation and digital expertise, understanding the dynamics of talent demand, skill preferences, and remuneration is crucial. TeamLease Digital, a market leader in tech staffing and learning solutions, has released its latest report titled Digital Skills & Salary Primer for FY 2025, providing essential insights into industry trends, critical skills, and salary benchmarks across three key tech sectors: IT Products & Services, Global Capability Centers (GCCs), and Non-Tech industries.

Overview of the Tech Market

According to TeamLease Digital’s report, India’s tech market size stood at USD 254 billion in FY24, with a year-on-year growth rate of 3.8% and a workforce of 5.6 million tech professionals. The report highlights significant advancements in technologies such as Artificial Intelligence (AI), Machine Learning (ML), Blockchain, Internet of Things (IoT), Robotic Process Automation (RPA), Edge Computing, and Quantum Computing. However, a notable skills gap persists, with only 2.5% of engineers possessing AI skills and merely 5.5% qualified in basic programming. In response, 86% of Indian businesses are actively reskilling their IT workers to bridge this gap.

The Rise of Global Capability Centers (GCCs)

The Indian tech industry is projected to reach $350 billion by 2025, with significant investments in AI, ML, and blockchain. Currently, India boasts over 1,600 GCCs employing more than 1.66 million professionals. The report anticipates the establishment of 800 new GCCs in the next 5-6 years, indicating the country’s growing prominence as a global tech hub. Interestingly, there is a trend of GCCs being set up in tier-II cities like Kolkata, Ahmedabad, and Vadodara, reflecting a geographical diversification of tech opportunities. Skills in high demand include PyTorch, AWS, DevOps, Natural Language Processing (NLP), Kubernetes, Hyperledger Fabric, Blockchain, Tableau, SQL, and ServiceNow.

Transformation of IT Products & Services and Non-Tech Industries

In the realm of IT Products & Services, cloud investment is projected to grow by 25-30% over the next five years. This sector is expected to contribute 8% to India’s GDP by 2026 and create 14 million jobs through cloud solutions, underscoring its potential economic impact. Skills such as PrismaCloud, Salesforce, ITSM, PowerBI, and Oracle are gaining traction, while demand for tools like Sketch, UI Path, Splunk, and Automation Anywhere is declining.

Non-tech industries are also undergoing a transformation, with over 70% of companies in Telecom, Media and Entertainment, Banking, Financial Services and Insurance (BFSI), and Energy and Utilities dedicating more than 20% of their technology budgets to digital advancements. The tech talent pool in non-tech sectors is expected to grow at a CAGR of 7.86%, from 765,000 in FY22 to 1.115 million by FY27, highlighting the increasing integration of technology across traditional industries.

Key Functional Areas, Top Skills & Salaries

TeamLease Digital’s report identifies key functional areas in the tech industry, including Software Development and Engineering, Cloud Solutions and Enterprise Application Management, Project Management and User Experience, Data Management and Analytics, Cybersecurity, and Network Development. These areas represent the core competencies driving India’s tech sector forward.

The report provides valuable insights into in-demand skills and corresponding salary brackets. For instance, in GCCs, AI/ML Engineer roles start at approximately INR 8.2 LPA, reaching up to INR 43 LPA for senior positions with over eight years of experience. In the IT Products & Services sector, a Big Data Developer can expect a starting salary of around INR 9.7 LPA, increasing to INR 20.7 LPA at senior levels. In non-tech sectors, an SAP ABAP Consultant starts at approximately INR 7.2 LPA, with potential earnings of INR 31 LPA at senior levels.

Multi-City Salary Comparison

The report also presents a multi-city salary analysis for the top ten popular tech job functions. Product Management and Data Science roles tend to be the highest paying across most cities, with salary ranges typically spanning from INR 12.8 LPA to INR 22.1 LPA for Product Management and from INR 12.1 LPA to INR 16.9 LPA for Data Science, depending on the city. Metro cities like Bengaluru, Gurgaon, Hyderabad, Delhi, Mumbai, and Chennai offer the highest salaries for tech roles, while emerging hubs such as Jaipur, Indore, and Coimbatore are projected to grow as GCC and Data Center locations.

Women Representation and Gender Pay Gap

The report sheds light on women’s representation in the tech workforce, currently at 20.5 lakh women professionals in India. In GCCs, the percentage of women tech professionals is expected to rise from 25% to 35% by 2027. However, a persistent gender pay gap remains, ranging from 10-17% on average, and reaching up to 22-30% for roles like Data Analysis.

Conclusion

As India’s technology landscape continues to evolve, the findings of TeamLease Digital’s report provide reliable insights into the current state and future trajectory of the sector. The cross-sectional view presented around talent trends, skill demands, and salary benchmarks is essential for understanding the dynamics of India’s growing tech ecosystem and the challenges and opportunities that lie ahead. With strategic investments in cutting-edge technologies and a focus on reskilling, India is poised to maintain its position as a leader in the global technology arena.