The decline in India’s tech pay suggests a profound shift in the global tech economy, with traditional cost advantages in offshore roles diminishing. As the demand for high-value AI and cybersecurity positions increases globally, India ranks lowest among major tech markets, trailing behind the US and emerging markets like Brazil and Mexico. Analysts indicate that the trend towards more equity-based compensation is an attempt by Indian firms to retain talent amid falling base salaries. This is coupled with a structural reshaping of the workforce, where junior engineers, reflecting a shift from higher-paid roles, are becoming more prevalent. This situation signals that CIOs may need to expand their hiring strategies beyond traditional hubs to more promising markets like Argentina, Mexico, and Brazil.
Furthermore, the report highlights a transition towards an AI-first mindset in operations, signaling a departure from merely digital-first approaches. Enterprises are now likely to prioritize small, product-focused teams that emphasize full-stack capabilities and AI-enabled services over cost models linked to larger workforces. Much of this restructuring emphasizes capabilities and automation readiness, potentially redefining India’s place in the global tech landscape. CIOs must now prepare for this evolving environment as they adapt to new hiring and operational strategies, aiming for efficiency through innovation rather than just labor arbitrage.
👉 Pročitaj original: CIO Magazine
