Key Factors That Can Enhance Your Hiring Potential and Salary
The Indian IT sector is undergoing significant changes in employment dynamics, with hiring and salary trends shifting rapidly. The rise of artificial intelligence has made some roles obsolete while creating demand for specialized talent. Companies are now focusing on niche hiring and tightening entry-level recruitment, leading to a new landscape where salary growth is increasingly linked to expertise in emerging technologies.
Changing trends in IT sector salaries & increments
Despite uncertainty, the Indian IT sector remains a top provider of compensation across industries. However, the post-pandemic era of high salary increments appears to be over. In 2021-22, average salary hikes reached 12%–15% due to rapid global digitization. In contrast, the current average increments for 2023-24 have dropped to 8%–9% as major tech buyers in North America and Europe reduce discretionary IT spending.
Milind Shah, Managing Director at Randstad Digital India, notes that compensation growth has stabilized at 6.8%–7.5% for traditional IT services. He emphasizes that salary growth has shifted from post-pandemic hyper-inflation to a more disciplined, skill-differentiated approach. Neeti Sharma, CEO of TeamLease Digital, reports that this year’s increments are around 6.9%, down from 7.6% last year. Companies are becoming more selective in their salary allocations, offering higher premiums for specialized skills.
Which IT roles are commanding a premium?
A clear divide is emerging within the IT sector, with niche and skill-based roles commanding higher salaries. Specialists in artificial intelligence, machine learning, cloud computing, and cybersecurity are currently in high demand. Milind Shah indicates that these roles are driving IT’s lead in salary rankings. Additionally, software developers, cloud architects, and product managers are among the standout mid-level positions.
According to a Randstad report, Indian IT firms are increasing investments in talent acquisition for specialized skills such as Java and Salesforce developers, cloud architects, and AI/ML engineers. Positions in AI/ML engineering and cybersecurity are commanding salary premiums of 20% to 35% above traditional software engineering roles. Neeti Sharma highlights that the premium is shifting from generic technology experience to scarce skills that can be deployed immediately.
Salaries & increments: What to expect in the next few years
Experts predict a slow recovery in hiring volume and velocity, barring any adverse developments. Francis Padamadan from Xpheno suggests that salary increments in the tech sector could range from 8% to 11% if growth remains stable. However, any pressure on growth margins could significantly lower these percentages.
Fresher hiring remains flat, with entry-level salaries stuck below $5,000 for over a decade until early 2020. Recent adjustments have pushed some packages above this threshold. Padamadan notes that the AI-enabled transformation of entry-level roles adds complexity to hiring. Meanwhile, niche roles continue to receive better salary hikes, with sustained premium pay for specialists in AI, cloud, and cybersecurity expected to persist.
Diwakar Chittora, Founder and CEO of Intellipaat, points out that professionals with outdated skills may face slower salary growth, while those with expertise in emerging technologies could command higher premiums. He emphasizes that the evolving landscape presents opportunities for freshers, as both seasoned professionals and newcomers are adapting to new AI capabilities.
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