India's IT Sector Sees 16% Hiring Boom Fueled by AI and Global Hubs

India’s Tier-2 cities emerge as new talent hotspots as tech hiring rebounds

India's technology sector is experiencing a hiring renaissance, with job growth accelerating to 16% year-over-year in April 2025 according to new data from foundit. The surge comes as global capability centers (GCCs) and AI adoption reshape the country's employment landscape.

Global corporations have established over 110,000 tech positions in India this fiscal year through GCCs, creating strong demand for specialized roles in data engineering, DevOps and enterprise architecture. "We're seeing strategic hiring replace mass recruitment," observed V. Suresh, CEO of foundit. "India is transitioning from back-office support to innovation leadership."

The rebound marks a dramatic turnaround from 2023's 22% hiring slump. With 1,580 GCCs already operating across India and projections suggesting 2,400 by 2030, these international hubs are driving much of the recovery. Bengaluru and Mumbai lead with 9% hiring growth, while emerging tier-2 cities like Coimbatore and Jaipur show surprising strength in entry-level recruitment.

AI adoption is proving equally transformative, with 60-70% of Indian businesses expected to integrate AI solutions within 18 months. This technological shift has sparked aggressive hiring at domestic IT startups and established firms alike.

Economists highlight additional tailwinds, including the India-UK Free Trade Agreement that opens new global opportunities for Indian tech professionals. As digital transformation spending rebounds worldwide, India's $245 billion IT sector appears positioned for sustained growth, blending global delivery capabilities with cutting-edge innovation.