Article: Shaping the future: How India’s HR landscape will evolve by 2025

Talent Acquisition

Shaping the future: How India’s HR landscape will evolve by 2025

As 2025 unfolds, India’s HR world evolves—tech innovation meets workforce aspirations, paving the way for smarter, inclusive workplaces.
Shaping the future: How India’s HR landscape will evolve by 2025
  • India’s tech sector hiring is projected to grow by 10–12% in 2025
  • IT spending is expected to rise by 11.2%, reaching USD 160 billion this year
  • With only 51.25% of youth employable, recruiters are focusing on skills over degrees

The HR function in India is undergoing a rapid transformation, driven by a confluence of factors such as persistent market and economic instability, evolving business demands, technological advancements, talent shortages, and shifting workforce dynamics. As we enter deeper into 2025, several key trends are shaping hiring outlooks, work models, recruitment strategies, and more.

Hiring activity is already on the rise. The tech sector is leading this growth, with demand projected to increase by 10–12% in the first half of 2025. Emerging technologies such as generative AI and quantum computing are expected to create nearly a million jobs by 2030. Global Capability Centres (GCCs) are also ramping up hiring, especially for specialised technology skills, and continue to offer competitive salaries compared to other financial services firms in India.

India Inc prioritises tech investments, including generative AI and automation

India Inc is actively investing in technology, with both tech companies and traditional sectors like banking, healthcare, and insurance adopting the mindset of a ‘tech company.’ Reskilling and upskilling initiatives are in full swing, aligning employees with these organisations' tech-driven aspirations.

India’s IT spending is projected to grow by 11.2% in 2025, reaching USD 160 billion, driven by substantial investments in generative AI (GenAI) and related technologies, according to Gartner.

The C-Suite is increasingly aware of AI’s transformative power and mandates generative AI and automation training to ensure successful adoption. Even companies yet to implement AI technologies are introducing similar programmes, as the pace of technological change accelerates.

Recruiters prioritise skills over formal education

Recruiters are continuing their shift towards a skills-first hiring approach. Traditional degrees are no longer the sole determinant of employability, as organisations seek competencies and hands-on knowledge to address modern workplace challenges.

India’s Economic Survey 2023–24 highlighted that only 51.25% of the youth workforce is deemed employable. This gap has driven the rise of short-term advanced courses and certifications that enable candidates to stay competitive and job-ready. Platforms like GitHub and other non-traditional sources are becoming key talent pools.

Gen Z expectations drive modernised hiring practices

Gen Z, which now forms a significant portion of the workforce, is reshaping recruitment practices. Employers are embracing mobile-friendly application processes, agile interview methods, and timely communication to cater to this tech-savvy generation.

A Greenhouse Candidate Experience Report revealed that over 60% of job seekers prefer a more streamlined recruiting experience, and companies are responding by implementing faster and more transparent hiring processes. This approach not only meets Gen Z’s expectations but also enhances overall hiring outcomes.

Diversity and inclusion efforts intensify

Diversity and inclusion (D&I) remain a top priority for organisations. Companies are actively working on creating more inclusive workplaces, introducing mentorship programmes, and addressing unconscious biases.

Indian firms have already witnessed a 33% rise in diversity hiring, and the trend continues to grow as organisations recognise the importance of a diverse workforce in fostering innovation and long-term success.

Generative AI experiments in recruitment increase

As generative AI continues to evolve, HR departments are exploring its potential in recruitment processes. AI offers solutions to challenges such as managing the overwhelming volume of applications and enhancing efficiency.  Recruitment teams are experimenting with AI use cases to identify areas where it can make the most impact, ensuring responsible and effective implementation.

Conclusion

In 2025, talent acquisition is becoming increasingly data-driven and intelligent, supported by automation and advanced HR technologies. These developments position recruitment teams to play a strategic role in achieving business growth and shaping organisational goals. Now is the time for companies to optimise their HR strategies and harness technology for better outcomes.

Read full story

Topics: Talent Acquisition, HR Technology, #Outlook2025, #Innovation

Did you find this story helpful?

Author

QUICK POLL

What will be the biggest impact of AI on HR in 2025?