India is experiencing both excitement and concern as AI transforms its job market. While Bengaluru faces a major job crisis due to layoffs and automation, the country is also becoming a global hub for AI talent. Foreign companies are increasingly hiring Indian professionals remotely, tapping into skilled talent at lower costs.
read more
India is witnessing both excitement and concern as artificial intelligence reshapes its job market.
While Bengaluru, the country’s top tech hub, is faces a major employment crisis due to layoffs and automation in the IT sector because of AI eating the jobs of trained professionals.
On the other hand, India is also becoming a global hotspot for AI talent.
Bengaluru in distress, facing major job crisis
Bengaluru, India’s leading tech hub, is now facing a major job crisis due to mass layoffs in the IT sector and the growing impact of AI and automation, Financial express reported citing Inshorts
This crisis is not just affecting tech workers—it also threatens Bengaluru’s housing market, real estate investments, and local businesses, raising concerns about the city’s economic stability.
India also emerging a hub of AI talent
Meanwhile, India is also emerging as a major hub for AI talent, with countries like the US, UK, Singapore, Sweden, Germany, and Canada hiring remote workers from India for full-time, contract, and freelance roles at nearly half the cost, avoiding immigration challenges, The Economics times reported.
According to global HR firm Deel, 69 per cent of global businesses already employ talent from India, with startups leading this trend at 88 per cent. The US saw a 135 per cent increase in hiring from India in 2024. Bengaluru is now the fourth most hired-from city in the Asia-Pacific region.
“India, with the world’s third-largest startup ecosystem, is at the heart of this hiring surge,” said Sumit Sabharwal, India head at Deel. “Startups with top AI talent attract high early-stage valuations, even with little revenue, as investors focus on future potential rather than immediate profits.”
According to Deel, India’s demand for AI talent is set to more than double from 600,000 in 2022 to over 1.25 million by 2027.
Recruitment firm Supersourcing said it has helped 35 AI startups and companies hire employees regularly. Mayank Pratap Singh, co-founder of Supersourcing, said remote hiring from India has increased by 50 per cent in Germany, the US, and Singapore, as it helps companies retain top talent at half the local cost.
