India is grappling with a serious shortage of Generative AI talent, with only one qualified engineer available for every ten open roles, according to report by staffing firm TeamLease Digital.
The gap is expected to widen further, with the AI talent shortfall projected to reach 53 per cent by 2026 unless large-scale training and reskilling programs are introduced, the firm said in its Digital Skills & Salary Primer 2025-26.
The report analysed 30,000 salaries across various technology roles, skills, and industries, highlighting a stark mismatch between demand and supply in India’s fast-growing digital economy.
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India’s AI market, set to reach Rs 28.8 billion by the end of this year and growing at 45 per cent annually, has become central to enterprise growth. Global Capability Centres (GCCs) are leading this hiring wave and are expected to contribute around 22 to 25 per cent of new white-collar tech jobs in 2025.
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Of the 4.7 million new tech jobs projected by 2027, over 1.2 million will come from GCCs, particularly in GenAI and engineering research and development roles.
The report also noted that cybersecurity is likely to gain more attention over the next 18 months. Around 85 per cent of high-tech companies and over 70 per cent of businesses in sectors like BFSI, telecom, media, energy, and utilities are allocating more than 20 per cent of their technology budgets to digital transformation.
Non-tech sectors driving tech hiring
BFSI: Banks plan to increase technology spending to roughly 10 per cent of operating costs to manage digital transactions and regulatory oversight. Fintech is expected to grow 30 per cent annually through 2030.
Automotive: AI in vehicles is set to transform the industry, creating demand for software developers, data scientists, cybersecurity engineers, and embedded systems experts.
Healthcare: Healthtech, now a Rs 7 billion market, represents a quarter of healthcare innovation and is driven by more than 10,000 start-ups.
Retail: AI investments, currently at Rs 5 billion, are expected to rise to Rs 31 billion by 2028. About 71 per cent of Indian retailers plan to adopt GenAI in the next year.
Also Read:India tops Global genAI adoption with 92% workforce embracing tools: BCG Report
Salaries soar in frontier tech roles
The talent shortage is pushing pay in cutting-edge tech roles to record highs. GenAI engineers and MLOps professionals are seeing annual salary increases above 18 per cent. Cybersecurity roles are expected to rise from Rs 28 lakh to Rs 33.5 lakh by FY27, with senior experts earning up to Rs 55 lakh. Data engineers may earn up to Rs 42 lakh, and senior Cloud Architects up to Rs 45 lakh.
Product management is emerging as the fastest-growing skill, with senior salaries projected to rise 29 per cent to Rs 42 lakh by FY27. By contrast, legacy IT roles remain stagnant at around Rs 12 lakh, reflecting the shift toward cloud-based and outsourced models.
Even with aggressive GCC hiring in Tier-2 and Tier-3 campuses–130,000 to 140,000 freshers expected in FY25–the supply of GenAI-ready talent remains critically low.
