Tech Sector Faces Skills Shortage As Employees Lack Training, Support

In a concerning development, 63 per cent of tech employees did not upskill last year which highlights the urgent need to address this skills gap. Among those, 73 per cent reported a lack of time, and 42 per cent cited a lack of support from managers as a barrier to their development, according to a report by TeamLease Digital, a tech staffing and solutions provider.

The report added that employees aiming to transition from junior to senior roles are encouraged to pursue certifications in cloud computing, data analytics, and cybersecurity, as these skills are considered mandatory for progression. Upskilling is seen as a cost-effective strategy for employers, enabling them to meet talent demand while equipping professionals with the expertise required for higher-level responsibilities.

Additionally, the tech workforce solutions provider’s outlook shows that state-wise salary differences continue to shape the tech job market, driven by cost of living, concentration of tech companies, and local policies. Senior-level roles are experiencing a notable salary increase of 6.79 to 10.7 per cent compared to FY 24 due to the diverse skill set required for these positions. 

This skill set encompasses advanced data manipulation, statistical analysis, machine learning, cloud computing, and expertise in big data tools such as Hadoop and Spark. The tech industry is currently facing a skills shortage in these areas, leading to a mismatch between demand and supply, it added. 

Major tech hubs such as Bangalore and Hyderabad offer competitive salaries due to their status as innovation centers, while smaller cities like Kochi and Coimbatore provide lower compensation because of reduced competition. However, companies are increasingly shifting their focus to tier 2 towns, where the talent pool is gaining more importance. 

According to the report, the cost of living is another major factor influencing salary disparities; for example, the high living expenses in Bangalore and Delhi necessitate higher salaries compared to cities like Ahmedabad. Additionally, government policies play a critical role, with Hyderabad’s favorable environment attracting tech companies, resulting in higher salaries compared to other regions.

Neeti Sharma, Chief Executive Officer (CEO), TeamLease Digital said, “To stay ahead, companies must align their talent strategies with technological advancements, particularly in AI and cloud computing. Investing in upskilling programs is not just an option but a necessity, enabling professionals to remain competitive in this dynamic environment. This alignment will be crucial for driving sustainable growth and innovation in the coming years.”

For hiring in the tech sector, there have been distinct patterns for freshers, mid-level professionals, and senior management. It stated that global capability centers (GCCs) have emerged as significant employers of fresh talent, offering entry-level candidates salaries that are up to 30 per cent higher than the industry standard for in-demand skills. 

This surge is expected to continue, with GCCs projected to increase fresher hiring by 40 per cent compared to the previous year. The IT services sector, while cautiously optimistic, is also anticipating a 20 to 25 per cent growth in the recruitment of freshers, underscoring the demand for skills in software development, data engineering, and cloud technologies.

Meanwhile, mid-level roles demonstrate stability, with consistent demand for project managers, data scientists, and cybersecurity experts. Salaries in these roles have seen an increase of 7.89% to 10.2% as compared to FY 2024, reflecting the market’s need for professionals who can apply their hands-on experience to manage and optimize business operations effectively. 

According to the report,  the senior management roles are experiencing a remarkable 21 per cent rise in demand since last year, attributed to the strategic importance of expertise in data engineering, product management, and DevOps, with salary increases ranging between 6.54 per cent and 10.8 per cent.

"Further, TeamLease Digital’s insights show that several key factors have driven the year-on-year growth in tech hiring. The rise in AI, machine learning (ML), and automation skills have significantly increased the demand for data-related roles. This trend is particularly evident in the surge of job postings for data scientists, where almost 69 per cent mentioned ML skills in 2024. 

Skills in natural language processing (NLP) have also grown in prominence, with demand jumping from 5 per cent in 2024 to 19 per cent in 2025, indicating a broad industry shift toward AI-driven solutions. Moreover, there is a growing need for skills such as Python programming, ethical hacking and penetration testing, Agile Scrum Master, AWS security, and JavaScript, further reflecting the evolving landscape of tech hiring.`

The rapid migration to cloud infrastructures has further fueled hiring in roles related to cloud engineering, development, and architecture. Organisations continue to prioritise platform-specific certifications, particularly in AWS and Microsoft Azure, as these credentials are increasingly seen as critical for tech professionals. By FY 2025, India is expected to require over two million cloud professionals to support the accelerated adoption of cloud technologies across various sectors.