TeamLease Digital recently hosted the Leadership ThinkTank event in Delhi, titled “Shaping Today’s Tech Talent: Unveiling Emerging Trends.” The gathering brought together 22 senior leaders from top organizations across diverse sectors, including IT, GCCs, Automotive, Energy, and Medical Equipment industries. A key concern that emerged during the discussions was the growing challenge of addressing the emerging tech talent demand-supply gap.
The rise of AI has impacted nearly every aspect of our lives--from how we live and work, to the way businesses operate, markets evolve, and education transforms. No longer confined to just repetitive tasks, AI is now a driving force behind smarter decision-making, personalized experiences, and the future of work. With more and more businesses integrating AI into their operations, it is evident that it is a true game-changer in every aspect. According to TeamLease Digital’s latest report “Digital Skills & Salary Primer FY24-25”, AI integration is expected to boost the country’s GDP to $500 billion by 2025.
AI Talent Demand vs. Supply Gap
According to our report, only 2.5% of Indian engineers possess AI skills, and just about 5.5% have basic programming qualifications. The rise of blockchain, IoT, and the pandemic-driven acceleration of RPA, edge and quantum computing are highlighting the shift in technological priorities. Advancements in AI and ML, driven by tools like Python, R, TensorFlow, and PyTorch, are fuelling growth in data science and DevOps, further creating a significant shortage of AI and ML expertise. The report predicts that India’s tech landscape will be shaped by a growing demand for ethical AI specialists, emphasizing responsible and transparent AI deployment, creating 4.7 million new technology-related jobs. There will also be a need for interdisciplinary skills bridging AI, cognitive science, and neuroscience.
However, this growing need is met with a significant supply gap, creating challenges in finding skilled professionals. On the topic, Jitender Bhutani, Associate Director - Kyndryl, said “There’s a clear shift in the skill set landscape, driven by the rising importance of AI, which is now both a preferred technology and the future of industry. The demand for AI expertise has far exceeded supply, revealing a critical need for upskilling and continuous learning. Agile approaches in learning and development will be essential for retaining talent and preparing for AI’s expanding role in the coming years.” Danish Afroz, General Manager, Ericsson, shared his experience stating “The shift isn't about reducing jobs but transforming them, where machines handle tasks and humans focus on monitoring. We should be ready to handle this transformation by making our employees capable for the future of work. But yes, I can relate to the limited supply of such talent. For instance, as a leader of a telecom company which is also a managed service provider, I find that hiring security experts is challenging.”
Talking about another important aspect of addressing the talent gap, Garima Babbar, Head of Skills & Education, Adobe, opined, “It is essential to combine expertise from both senior and junior resources. Senior architects should lead, while younger professionals support them to gain hands-on experience. As AI increasingly automates basic coding, organizations must prioritize upskilling their workforce and ensure education institutions align with industry needs. Additionally, tech skills alone aren't enough—cultivating the right attitude and learning agility is critical for success in the evolving tech landscape.”
Upskilling and Reskilling
The "Advancing India's AI Skills: Interventions and Programmes Needed" report by Deloitte India and Nasscom projects that the demand for AI talent in India will surge to 1.25 million by 2027, up from the current 600,000-650,000. However, there is a pressing need to enhance the quality of professionals to adequately meet this rising demand. The average lifespan of skills has dropped to under five years, and in some tech sectors, it's as short as two and a half years. While not all knowledge workers will lose their jobs in the coming years, many may find that AI and other emerging technologies have transformed their roles so dramatically that they are essentially working in entirely new fields.
Usha Mehta, General Manager, Sopra Steria said that “As we advance into the era of AI, it's vital to focus on internal resource development rather than solely hiring externally. The goal is to prepare employees for a future where tasks will be increasingly automated, requiring humans to oversee AI systems. By cross-skilling and upskilling current staff, we can align them with evolving roles and projects, creating a workforce adept at handling next-generation challenges and leveraging AI effectively.” Upskilling now encompasses not only technical expertise but also essential soft skills. communication, problem-solving, and adaptability are crucial for thriving in a tech-driven world. Bhavishya Dabral, Head of Human Resources from Excitel Technologies highlighted this need, noting, “Employers are increasingly seeking composite skills that blend technical knowledge with strong soft skills like communication and teamwork. Despite a current shortage of AI specialists, the emphasis is on enhancing efficiency and productivity rather than merely replacing roles. Organizations must invest in developing these broader skills to ensure employees add greater value and adapt to evolving responsibilities.” The Digital Skills & Salary Primer FY24-25 report revealed that 57% of employees considered soft skills the most critical for their current roles, while 47% highlighted data analysis and visualization skills as essential.
Expressing her opinion on the current GenZ workforce at British Telecom Group, Vidhi Trehan, Functional L&D Head said that the workforce which was earlier using traditional CRM tools have been quick to adapt to AI-powered tools, due to their high exposure to technology. However, this workforce wants an answer as to why they are being asked to adopt GenAI or pick up a pathway on tech fluency of data analytics. They are always seeking clarity on how it benefits their career growth and job flexibility. To this Anurag Malthora, Associate Director at Apptad mentioned that the focus is on enhancing efficiency and productivity, not reducing headcount. Employees will be expected to contribute more valuable work to the organization. A strong technical, human, and logical mindset will still be essential. Jobs like plain coding for modules may not exist in the same form, as machine learning could handle these tasks. For example, what 100 Java developers do today could be automated, but new roles will emerge that require human oversight and strategic thinking.
Arvind Gupta, Head of Indirect Purchasing at BMW, believes that the widening skill gap arises from fundamental issues. For instance, the report revealed that 63% lacked relevant skills in the past year, with 87% encountering similar issues during college. Many employees are accumulating online certifications that employers no longer find valuable, especially in fields like cybersecurity and AI. There’s a growing need to focus on core domain expertise, as many are pursuing "cool" jobs but missing foundational skills. The report includes a competency matrix to align key skills with relevant certifications for success in the current job market.
To bridge the skill gap, industries need tailored approaches. GCCs must adopt skill taxonomies and analytics for Generative AI and Quantum Computing, while IT focuses on personalized reskilling and non-tech sectors form training partnerships, integrating technologies like Green Tech. Hiring for potential and creating advisory councils for AI, Data, and Cloud will also help build a future-ready workforce. Continuous upskilling and fostering adaptability will keep employees agile, equipped with both technical and soft skills for the evolving landscape. By following this multidimensional approach along with fostering a learning mindset and aligning talent development with industry shifts, businesses can turn the AI revolution into a powerful force for growth and innovation, preparing both their workforce and leadership for a transformed future.
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