How AI is Transforming Hiring, Salaries, and Job Roles Across Indian Companies

Is artificial intelligence (AI) revolutionizing India’s job market? Industry experts Ramani Dathi, CFO at TeamLease Services, and Pavan Goyal, Chief Business Officer at Naukri.com, provide valuable insights into the dynamic landscape of hiring trends influenced by AI.

As the adoption of AI accelerates, India’s job market is experiencing a seismic shift. While there is robust demand for senior and highly skilled roles, entry-level hiring, especially in sectors such as IT and business process outsourcing (BPO), tells a different story.

“AI is undoubtedly reshaping the employment landscape, particularly in sectors like IT, BPO, education, media, and entertainment,” said Ramani Dathi, CFO of TeamLease Services. The most significant impact is felt by those with zero to four years of experience, as companies are increasingly cautious with hiring and salary growth shows signs of stagnation.

However, the effects of AI are far from uniform across the board. Roles focused on AI and machine learning are witnessing a remarkable surge. “In Global Capability Centres (GCCs), the growth of AI-related jobs has been nothing short of phenomenal, ranging from 30% to 50%,” noted Pavan Goyal, Chief Business Officer at Naukri.com. 

The GCC sector itself has expanded by 10% over the past year, propelled by these AI-centric roles. Intriguingly, the BPO sector, often seen as susceptible to automation, has proven surprisingly resilient. 

“BPO roles in the sub-₹5 lakh salary range remain in high demand, outstripping available candidates,” Goyal stated, challenging the assumption that automation would swiftly eradicate customer support jobs.

The job market is evolving into two distinct tracks. Senior professionals and individuals with specialized skills, such as AI, machine learning (ML), cloud computing, and cybersecurity, are commanding impressive salaries, while routine roles and entry-level hiring face increased scrutiny. 

“Possessing AI skills significantly boosts your chances of landing a job,” Goyal emphasized, highlighting the pronounced pay gap between AI engineers and traditional software engineers. Yet, a critical question lingers: Is AI creating more jobs or eliminating them? 

Goyal succinctly encapsulates the dilemma: “Will companies accomplish more with fewer employees, or will they expand their workforce?” While some roles may diminish as productivity rises, exciting new opportunities are emerging on the horizon. 

Major IT firms have yet to announce any substantial cuts to campus hiring or significant job losses attributed to AI. Instead, they are strategically investing in upskilling their workforce to ensure readiness for the demands of AI.

Nevertheless, both experts caution that entry-level hiring may remain sluggish in the near term, even as AI is poised to create new opportunities down the line. Currently, TeamLease Services holds a market capitalization of approximately ₹3,345 crore.

Its shares have experienced a decline of nearly 33% over the past year. In stark contrast, Info Edge (India), the parent company of Naukri.com, boasts a market cap of ₹97,003 crore, with its shares rising about 12% in the same period. 

As the landscape continues to evolve, one thing is clear: AI is not just a catalyst for change; it is redefining the very essence of work in India.