India's information technology sector witnessed a notable 16% year-on-year surge in hiring activity in April, signaling renewed momentum after a period of volatility. This growth is driven by aggressive adoption of artificial intelligence, the modernization of cloud infrastructure, and the continued expansion of Global Capability Centers (GCCs). A new report by job platform foundit highlights that skill-based hiring now dominates the recruitment narrative, with practical expertise outweighing formal qualifications. Emerging tech hubs in Tier-2 cities are gaining traction, while metro centers remain strongholds for leadership and niche roles. This article delves into the trends driving IT job creation and their broader implications for the industry.
AI, Cloud, and GCCs Propel IT Job Creation
India’s IT industry has entered a new phase of expansion, with hiring increasing by 16% in April compared to the same period last year. According to the latest edition of the foundit Insights Tracker—a monthly analysis of online job postings—this hiring resurgence is underpinned by three structural shifts: the rapid implementation of artificial intelligence (AI), the transformation of legacy systems via cloud modernization, and the scaling of Global Capability Centers.
GCCs alone contributed over 1,10,000 new tech jobs in FY25, reinforcing their growing importance in India’s role as a global technology hub. These centers, established by multinational corporations to handle critical operations, are now among the largest drivers of demand for high-skilled IT talent in the country.
Practical Skills Trump Degrees in Modern Hiring
A key insight from the report is the rise of skill-based hiring across the IT sector. Approximately 62% of IT employers now prioritize practical, hands-on experience over formal academic credentials. This marks a significant departure from traditional hiring norms, reflecting the industry's shift toward outcome-oriented roles that demand agility and specialized expertise.
The most sought-after domains include artificial intelligence and machine learning (AI/ML), cloud computing, cybersecurity, and data analytics—together accounting for an overwhelming 95% of total job postings in the sector. The demand profile suggests a clear pivot toward next-generation technologies that are core to digital transformation initiatives.
Emerging Cities Gain Ground in Talent War
While India’s metro cities continue to dominate high-value hiring, smaller cities are now registering exceptional year-on-year growth. Coimbatore leads with a 40% annual increase in hiring, followed by Ahmedabad (17%) and Baroda (15%). This trend is attributed to the rise of hybrid work models, regional cost efficiencies, and improved infrastructure in non-metro locations.
These emerging hubs are attracting a growing number of companies looking to decentralize their talent footprint while tapping into a skilled workforce outside of traditional tech centers. The ability to hire remotely has further expanded access to talent pools that were previously underutilized.
Metro Markets Continue to Anchor Senior Hiring
Despite the rise of Tier-2 cities, metro regions such as Bengaluru, Mumbai, and Delhi NCR remain indispensable for leadership and specialist roles. Each of these cities recorded a steady 7% to 9% growth in hiring, underscoring their continued relevance as strategic centers for innovation and corporate headquarters.
The hiring in these hubs is characterized by demand for senior architects, DevOps specialists, and enterprise-level technologists—roles that require not just domain knowledge but also cross-functional leadership and the ability to scale technology solutions at enterprise levels.
Outlook: Momentum with a Measured Optimism
The April hiring data paints a promising picture for India’s IT landscape, fueled by structural shifts in global tech demand and local innovation. However, analysts caution that the sustainability of this hiring momentum will depend on macroeconomic factors, including global capital flows, enterprise spending trends, and regulatory clarity around AI and data protection.
For now, India’s IT sector appears well-positioned to ride the wave of technological transformation, with a talent strategy that increasingly values adaptability, domain expertise, and decentralized access to skill.
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