India's digital growth at risk amid skill gap in AI, cloud & cybersecurity

A report by TeamLease warns of a 25-60% talent deficit in AI, cloud, and cybersecurity, with GenAI roles worst hit, risking India's $1.2 trillion digital economy ambitions

Artificial intelligence (AI), cloud, and cybersecurity are key to reshaping India’s digital economy. However, enterprises are facing severe talent shortages in these domains, with gaps ranging from 25 per cent to over 50 per cent, according to TeamLease Digital’s Digital Skills and Salary Primer for the financial year 2025-26.

 

The report finds that AI and generative AI (GenAI) roles have the sharpest mismatch. For every 10 open GenAI positions, only one qualified engineer is available, pointing to a 53 per cent shortfall projected by 2026.

 

Similarly, cloud computing faces a demand–supply mismatch of 55-60 per cent, while cybersecurity has a deficit of 25-30 per cent at mid-to-senior levels. 

 

 

High salaries, thin talent pool

Even with shortages, AI roles are among the best paid. Senior AI talent can earn up to ₹60 lakh annually, while mid-level professionals in areas like prompt engineering, agent design, and orchestration draw salaries of ₹22-35 lakh.

 

Cybersecurity and data engineering salaries have also risen steadily, with senior pay crossing ₹30 lakh in several sectors.

However, the talent gap is forcing a rethink at the leadership level. New roles such as Chief AI Officer (CAIO), Chief Data Officer (CDO), and Chief Product Officer (CPO) are central to governing GenAI adoption and digital transformation.

 

In global capability centres (GCCs), compensation for these roles is among the highest in the market, at ₹2-2.5 crore.

 

GCCs expand beyond metros

India is home to over 1,760 GCCs employing 2.16 million people. This is projected to touch three million by 2030, with GCCs expected to generate up to a quarter of new white-collar tech jobs in 2025. 

Nearly 30-35 per cent of AI hiring is concentrated in GCCs, many of which are expanding into tier-II and tier-III cities such as Coimbatore, Indore, and Jaipur.

 

Non-tech sectors join the talent race

The shortage is not just confined to IT services. BFSI, healthcare, manufacturing, and retail are also aggressively recruiting for digital roles in cloud migration, cybersecurity, and analytics. 

In these areas, senior-level pay has reached ₹28-30 lakh, while legacy IT support and mainframe roles are stagnating at around ₹12 lakh.

 

Pay gaps narrowing across cities

Metro hubs such as Bengaluru, Hyderabad, and Mumbai continue to command a 15-20 per cent salary premium for senior roles. But the gap is narrowing as Pune, Gurgaon, and smaller hubs gain ground. Entry-level pay for freshers in AI, cloud, and cybersecurity has stabilised across tiers, at ₹6-8 lakh.

 

The report also highlights faster career transitions with non-tech professionals moving into AI or data science roles through short-term upskilling. With this movement, professionals have seen 25-45 per cent salary increases within a year.

Freshers are also entering the workforce with sharper digital skills, earning ₹7-8.5 lakh in AI, data engineering, and cybersecurity, signalling what TeamLease terms a “democratisation of India’s digital workforce”.

 

What's next for digital economy?

India’s digital economy contributes around 15 per cent of GDP and is projected to reach $1.2 trillion by 2030. But sustaining this growth will depend on closing the skills gap in AI, cloud, and cybersecurity.

 

“Thriving in this environment demands more than technical skills. Agility, continuous learning, and inclusion will define the workforce of the future,” said Neeti Sharma, CEO, TeamLease Digital.