While technical proficiency has become ubiquitous, people management and soft skills have emerged as the differentiators. 57% of employees consider soft skills crucial for their role. With Gen Z comprising nearly 50% of the workforce, many second-line managers are technically adept but lack critical leadership skills. Companies are now emphasizing training in emotional intelligence, collaboration, and effective communication to create well-rounded leaders.

Talent mobility is shifting beyond India’s top five metropolitan hubs. Up to 15% of New India’s tech talent thrives in Tier 2 and 3 cities. Cities like Pune, Coimbatore, and Indore are becoming hiring hotspots where Surat and Ludhiana, in particular, have made an impressive debut in rankings for IT talent demand. These cities offer lower living costs and sustainable lifestyles, making them attractive for both employers and employees. As GCCs shift operations to Tier 2 locations, these emerging hubs are gaining even more prominence. This decentralization of talent drives regional economic growth and expands the talent ecosystem.

Workforce retention remains a pressing challenge. 47% of Gen Z prioritize work-life balance when evaluating potential employers. They view employment as transactional, prioritizing work-life balance over long-term organizational loyalty. CXOs observed a decline in employees’ passion for broader business understanding and cross-functional collaboration, underlining the need for cultural shifts that reignite purpose-driven engagement.

As businesses race to stay competitive in a rapidly evolving technological landscape, reskilling IT workers in areas like artificial intelligence (AI) has become a strategic priority. A recent World Economic Forum report revealed that nearly half of workers' core skills will shift by 2027, prompting 86% of companies to invest in reskilling programs to future-proof their workforce. With AI transforming industries, IT teams need to stay ahead, mastering tools like machine learning, automation, and cloud-based solutions. Upskilling isn't just a workforce investment, it's a business necessity for maintaining a competitive edge for organizations.

In India’s tech sector, a notable gender pay gap persists, with women earning an average of 10% to 17% less than their male counterparts. This gap is growing wider at senior levels, and is further compounded by limited promotion opportunities, often discouraging women from fully engaging with the corporate system. Moreover, many women hesitate to negotiate their salaries. 60% avoid it altogether, and 45% never attempt it at all. This reluctance is not merely a personal choice but a key factor contributing to the ongoing gender pay gap. By addressing these barriers and fostering open discussions around salary negotiation, we can build a more equitable and empowering workplace for all.

India’s tech sector has transitioned from a back-office hub to a global leader in product innovation. With 16% of the world’s AI talent, India is driving advancements in AI, ML, cloud computing, and domain-specific skills. The rise of GCCs has been pivotal, with over 1,700 centers generating $64.6 billion in revenues and employing nearly 2 million people as of 2024. By 2030, GCCs are projected to grow to 2,200, with revenues nearing $105 billion. This shift highlights India’s transition to a high-value innovation hub, showcasing its skilled IT workforce

As we look forward to 2025, the future of work is evolving faster than ever! The shift towards skill-based hiring, the rise of Tier 2 and 3 cities, and the growing emphasis on upskilling are reshaping how companies attract, retain, and empower talent. To stay competitive, businesses must focus on nurturing adaptable, well-rounded teams equipped with both technical and soft skills. By embracing these changes, we can build a workforce that not only meets the challenges of today but thrives in the opportunities of tomorrow. The future is bright and it’s up to us to shape it. Here's to building a smarter, more agile workforce in 2025!