Bengaluru, Chennai lead India’s tech talent demand

At a time when India is gearing up for technological innovation, the Southern cities of Bengaluru and Chennai are leading the burgeoning demand for tech talent, according to a report by Quess Corp. Titled the ‘Annual Digital Skills Report FY24,’ South India is leading the growing demand for tech talent, with a staggering 68% of hiring requests. This is followed by the west, north and eastern regions, accounting for 16%, 8% and 2%, respectively of the total tech demand.

Amongst cities, Bengaluru accounts for 49.4% of tech talent demand, followed by Chennai, where the demand for tech talent stands at 9.6%. Pune, Hyderabad, and NCR (National Capital Region), stand at 9.4%, 8.1%, and 7.5%, respectively in terms of tech talent demand. Meanwhile, Mumbai and Kolkata account for 6% and 1%, respectively,  of the total tech demand.  

“This dominance is mirrored in the commercial real estate market, where Bengaluru, NCR, and Hyderabad reign supreme, collectively capturing 65% of office space leasing activity. This trend suggests a potential "back-to-office" phenomenon, with tech companies driving space absorption at 26%,” says the report.

Apart from metro cities, tech talent is also gaining traction in tier-II and tier-III cities such as Ahmedabad, Chandigarh, Indore and Jaipur, owing to the growth potential of these cities, signalling a more geographically diverse and inclusive tech landscape with exciting opportunities.

Amongst sectors, tech talent demand continued to witness strong momentum in industries like BFSI (19%), automotive (15%), consulting (9%) and product development (6%). Interestingly, as the country expands to emerging areas such as semiconductors, electronics, and electrical industries with technological innovation and R&D, tech talent demand in the manufacturing sector has also increased.

Similarly, retail has also witnessed an upswing in tech talent demand such as data analytics, AI and digital marketing owing to a rise in e-commerce and omnichannel platforms. Moreover, the healthcare and life sciences industry is also undergoing a digital revolution driven by factors like electronic health records, telemedicine and personalised medicine.

Amongst skills, development (35%), ERP (12%), testing (7%), design and engineering (7%) and networking (5%) emerged as the top tech skills. These skills accounted for 66% of the tech talent demand. In addition to this, there was a green shoot in talent demand for skills related to cloud (16%), cybersecurity (215%), and analytics (256%) between H1FY24 and H2FY24.

"Looking ahead, we anticipate a rise in IT hiring fueled by the expansion of Global Capability Centers and the stabilisation of the global economy. Key technological advancements like big data and AI will likely drive this growth. While challenges remain, India's IT industry is well-positioned to navigate these shifts and emerge stronger than ever, thanks to the combined strengths of its people, innovation, and strategic vision," says Kapil Joshi, Deputy CEO, Quess IT Staffing.