AI, cybersecurity and cloud roles drive India’s IT hiring as GCCs fuel specialised talent demand: foundit 

India’s IT hiring market is no longer chasing headcount growth. Instead, companies are paying a premium for specialised talent in artificial intelligence, cloud computing and cybersecurity as they rebuild teams for an AI-first future.

A new report by recruitment platform foundit shows that nearly 65% of technology hiring demand in India is now concentrated in AI/ML, cloud and cybersecurity roles, reflecting a structural shift in the country’s $250-billion IT services industry.

The transition comes after nearly three years of uneven hiring cycles, marked by mass layoffs, delayed client spending and cautious recruitment by large IT firms. While overall hiring growth has moderated to 3% year-on-year in 2025-26, the composition of jobs is changing rapidly.

Why are AI and cloud roles dominating India’s IT hiring market?

The report estimates India’s IT sector could see 6% hiring growth in 2026, driven largely by Global Capability Centres (GCCs), which are expected to add 132,000 new jobs.

“What we are seeing is a move from recovery hiring to capability hiring,” Tarun Sharma, chief product and technology officer at foundit, tells Fortune India. “Companies are investing in skills that directly improve productivity, automation and product ownership rather than expanding teams indiscriminately.”

The biggest beneficiaries of this shift are AI and data professionals. AI/ML engineers now account for the single-largest share of tech hiring demand at 13%, while demand for generative AI and large language model (LLM) skills has surged 26% year-on-year. Data scientists and DevOps engineers are also witnessing double-digit growth as enterprises accelerate AI deployment and cloud migration projects.

At the same time, conventional support roles are beginning to lose relevance. Hiring demand for IT support and QA/test automation functions has either stagnated or declined as companies increasingly rely on AI-led automation tools.

The hiring reset is also reshaping compensation trends. Salaries for AI and cybersecurity professionals are rising faster than broader technology roles, with experienced AI professionals commanding annual packages exceeding ₹80 lakh in some cases.

How are GCCs reshaping India’s technology workforce?

The report highlights how GCCs have become central to India’s evolving tech employment story. GCCs now account for 44% of total IT hiring in the country, up from 41% a year ago. More importantly, these centres are no longer limited to back-office engineering support.

Multinational companies are increasingly using their India centres for global product development, AI innovation and platform ownership. The share of AI-led roles within GCCs has climbed from 18% to 26% in just one year, while hiring for internal product and platform roles has risen sharply.

This trend is particularly benefiting mid-to-senior professionals. According to the report, 58% of GCC hiring is now focused on professionals with four to twelve years of experience, underscoring the premium on specialised expertise over entry-level scale hiring.

Why are Tier-2 cities emerging as India’s next tech hiring hubs?

Another notable shift is the growing role of Tier-2 cities in India’s tech economy. Nearly 40% of incremental hiring demand is expected to come from emerging hubs such as Indore, Bhubaneswar, Nagpur and Mysuru.

Companies are increasingly expanding beyond traditional metros in search of lower operating costs and wider talent pools, especially as hybrid work models become more acceptable across the industry.

Delhi-NCR emerged as the fastest-growing major IT hiring market, posting 28% year-on-year growth, fuelled by startup activity and aggressive GCC expansion. In contrast, hiring momentum weakened in cities such as Mumbai, Chennai and Kolkata.

The report also signals a broader change in how companies evaluate talent. About 71% of employers now prioritise skills over formal degrees, up from 62% last year, as recruiters struggle to find specialised AI, cloud and cybersecurity talent quickly enough.

For India’s IT industry, the message is becoming clear: the next hiring cycle will not be defined by scale, but by how quickly companies can secure high-value digital skills in an increasingly AI-driven global market.