Artificial intelligence is beginning to reshape hiring patterns in India's technology sector, disrupting traditional roles such as coding and testing while creating demand for new skill sets, according to Ramani Dathi, Chief Financial Officer at TeamLease Services Ltd. Speaking to NDTV Profit, Dathi said companies are becoming more cautious in their hiring decisions amid global uncertainty, with many firms pausing permanent hiring and increasingly relying on contract staffing to meet short-term workforce needs.
"Whenever there is uncertainty and the market outlook is not very clear, companies typically put their permanent hiring on hold and rely more on contract staff," she said. This trend is already visible across sectors and is providing opportunities for staffing companies that specialise in flexible workforce solutions.
GCC Hiring Gains Momentum
Dathi said Global Capability Centres (GCCs) are emerging as a key driver of hiring demand in India, particularly those backed by European companies. According to her, a majority of TeamLease's hiring mandates in the past six months have come from European GCCs, aided by stronger economic engagement between India and Europe.
"There has been an increase in inbound inquiries from European GCCs, and many of them are looking to expand or set up operations in India," she said.
Importantly, these centres are no longer hiring only technology talent. Companies are also recruiting for a wider range of specialised roles including financial analysts, actuaries, legal professionals, HR specialists and finance professionals. This diversification in hiring demand is helping offset weakness in other segments.
AI Hits Traditional IT Roles
However, artificial intelligence is already beginning to disrupt traditional IT services roles, particularly in areas such as coding, testing and software development. Dathi said TeamLease has seen a 60-70% decline in headcount demand for these roles over the past two years, as companies increasingly deploy AI tools to automate repetitive tasks.
"There is definitely disruption happening in some roles. Coding, development and testing profiles have already been impacted," she said. The shift is also visible in hiring patterns at IT services firms, where net hiring has slowed sharply as companies focus on improving productivity through automation rather than adding new employees.
Despite the disruption, Dathi said AI is also creating demand for new job categories, particularly in areas such as AI data analysis and data annotation. TeamLease has already started shifting its hiring focus toward these emerging roles to align with changing market demand.
At the same time, the impact of AI on non-IT roles such as manufacturing, sales and entry-level jobs remains limited so far. Dathi noted that AI tools could actually improve productivity among fresh graduates by helping them become job-ready faster through training and digital assistance, potentially enhancing employability rather than reducing opportunities.
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