Code junkies make way for AI pros as skills landscape shifts

The study, based on responses from 1,300 job seekers and 251 HR executives in the January-March period, reflects the changing landscape of skills sought by Indian companies.

"29% survey respondents reported a decline in demand for traditional coding roles compared to last year. Entry-level coding and support jobs may decline, but high-value, AI-assisted engineering and product roles are on the rise," the study said.

Despite the crests and troughs in the job market, the IT sector remained one of India's top recruiters in 2024, accounting for 37% of the total hiring. "Rising demand for IT services, digital transformation across industries, emerging tech and startups, rapid adoption of AI, remote working supporting global hiring and ample talent pool are key growth drivers for this industry," the study noted.

"The job market is evolving faster than ever, and so are the expectations. AI is transforming how we work, but it’s also redefining what we value. Only those who grow with the change will stay relevant in the new world of work," said Akhil Gupta, chief executive officer (CEO), Shine.com

Hence, companies catering to new-age skills have been a bright spot, witnessing continued demand and fundraising, in an otherwise gloomy edtech sector. Companies like upGrad and Eruditus have raised new rounds of funds, while others like Physics Wallah, which earlier operated in adjacent segments like test prep and K-12, have diversified into upskilling to cash in on the growing demand.

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Companies have seen the shift in the demand for specific skill sets, where some of the popular ones are getting phased out, also resulting in the need to upskill.

"Technology has always evolved in cycles—from trials and proofs-of-concept to mass production and commoditization. Today, we are amid one such cycle, where digital technologies like AI and automation are transforming industries with unprecedented pace and breadth," said Amit Chadha, chief executive officer and managing director, L&T Technology Services.

Chadha pointed out that skills that were "once central to traditional engineering such as standalone computer-aided design (CAD), computer aided manufacturing (CAM), or manual testing, are gradually giving way to integrated, intelligent, and automation-driven approaches. CADs and CAMs are often used to build prototypes.

Banking, Financial Services, and Insurance (BFSI) and e-commerce are among sectors that remain attractive. In fact, the banking sector may have hired fewer than the previous year, but remains one of the top recruiters. Mint had reported in April that lenders had over-hired after the pandemic and underestimated the growth of digital services, and now recruitment in the lower orders has eased a bit. In the e-commerce industry, logistics and dark stores continue to recruit in good numbers.

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Global capability centres (GCC), essentially dedicated technical centres for global companies, are another talent-guzzler. The study pointed out that GCCs in India are set to create 425,000-450,000 new jobs this year.

RPG Group said it is using strategic skill mapping, customized learning programmes and cross-functional gigs to update talent. "Siloed technical expertise and professionals with narrow technical skills without adaptability may find their roles getting limited as interdisciplinary knowledge is becoming more valuable," cautioned Supratik Bhattacharyya, chief talent officer at the group.

Whether established business houses or startups, companies are scanning the talent pool for AI-based skill sets. "The shift is clear: it’s no longer about ‘Do you know AI?’ but "Can you apply AI to solve a business problem in your domain in real-world scenarios?" said Mayank Kumar, co-founder, upGrad. The upskilling platform says it has seen a 40% quarterly uptick in the March quarter for a host of AI-related courses.

Similarly, Raman Khanduja, co-founder and CEO at MintOak Innovations, a company that helps banks innovate and compete with new-age fintechs, sees routine coding, manual operations and narrowly defined roles losing relevance. “What’s gaining ground are skills that harness the power of AI, not just in engineering, but also in areas like data analysis, customer insights and content syndication."

While firms are scanning the job market for the right candidate, Dale Vaz, co-founder of stock trading platform Sahi, points out how AI models have boosted business. "Our brokerage, for example, is priced at just ₹10 per order—50% lower than many leading brokers—thanks to our AI-first cost structure," said Vaz, the former chief technology officer (CTO) of e-commerce company Swiggy.

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