Indian IT hiring pivots to AI, cloud and cybersecurity specialists with higher pay
The Indian IT industry is shifting from broad hiring and uniform raises to targeted recruitment of AI, cloud and security experts, offering premium salaries for scarce skills.
The Indian technology sector is experiencing a hiring overhaul, with firms curbing mass recruitment and instead competing for experts in AI/ML, cloud services and cybersecurity. Salary hikes that peaked at 12-15% in 2021-22 have normalized to 6-9%, and compensation is increasingly tied to specialized skill sets rather than tenure. Randstad Digital India reports premiums of 20-35% for roles such as AI engineers, MLOps and cloud architects, while TeamLease Digital notes a shift toward variable, performance-based pay.
Fresh graduate salaries have barely moved above $5,000 annually, reflecting a surplus of entry-level talent. Analysts expect a K-shaped pay curve over the next two years, with high-demand specialists earning 15-25% raises and legacy engineers seeing modest 5-8% increases. The overall trend underscores that mastery of emerging technologies now outweighs years of generic experience.
Why it matters
IT workers must upskill in AI, cloud or security to secure better pay as the sector rewards scarce expertise.
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