IT Legacy Roles Stagnate as Demand for Cloud, AI, and Cybersecurity Skills Surges in India

As India’s digital economy continues to expand at an unprecedented pace, a significant transformation is underway in the landscape of Information Technology (IT) roles. The latest findings from the TeamLease Digital Skills and Salary Primer Report for FY2025-26 reveal a stark contrast between traditional IT positions and emerging roles driven by advancements in technology. While the digital economy surges forward, traditional roles such as IT support and legacy systems maintenance are experiencing stagnation in salary growth, highlighting a critical shift in industry priorities.

The report indicates that salaries for IT support roles have barely budged, with projections showing an increase from ₹10.5 lakh per annum (LPA) to just ₹11 LPA by FY2027. Similarly, the remuneration for legacy systems maintenance remains stagnant at ₹12 LPA. This lack of growth signals a broader trend: companies are increasingly pivoting towards cloud-native platforms, artificial intelligence (AI)-driven roles, and outsourced service models. The stagnation of these traditional roles raises questions about their future viability in a rapidly evolving digital landscape.

In stark contrast, high-demand areas such as Generative AI (GenAI), cloud computing, and cybersecurity are witnessing remarkable salary increases. Senior professionals specializing in GenAI engineering and MLOps can now command salaries ranging from ₹58 to ₹60 LPA, reflecting the premium placed on expertise in these cutting-edge fields. Cybersecurity experts, too, are seeing substantial pay rises, with expectations of salaries increasing from ₹28 LPA to ₹33.5 LPA by FY2027. This disparity underscores the growing importance of skills that align with the future of work, where innovation and security are paramount.

Neeti Sharma, CEO of TeamLease Digital, emphasizes the pivotal juncture at which India’s digital economy stands. “AI, cloud, and cybersecurity are redefining the future of work,” she states. “Global Capability Centres (GCCs) alone contribute 22–25% of net new white-collar tech jobs and account for 30–35% of AI hiring nationwide.” This shift is not merely a trend; it represents a fundamental change in how businesses operate and the skills they prioritize.

The report highlights that GCCs are poised to be major drivers of demand for tech talent, with projections indicating the addition of over 1.2 million new tech jobs by 2027. As India’s overall digital economy is expected to grow twice as fast as the rest of the economy, contributing nearly one-fifth of the country’s GDP by 2030, the implications for job seekers and current professionals are profound. The demand for skilled workers in emerging technologies is set to outpace supply, creating a competitive job market that favors those with the right qualifications.

However, this rapid evolution comes with its challenges. The widening talent gap is a pressing concern, particularly in the realm of GenAI. For every ten open GenAI roles, only one qualified engineer is available, underscoring the urgent need for large-scale upskilling initiatives. Without a concerted effort to bridge this gap, enterprises may struggle to meet their digital ambitions, potentially stalling progress in key areas of innovation.

The stagnation of legacy IT functions serves as a stark reminder of the changing priorities within India’s digital economy. Companies are increasingly investing in future-ready skills that align with their strategic goals, leaving behind roles that no longer add significant value. This shift is not merely a reflection of market trends; it is indicative of a broader cultural change within organizations as they adapt to the demands of a digital-first world.

As businesses embrace cloud technologies, AI, and cybersecurity measures, the skills required to thrive in this environment are evolving. Traditional IT roles, once considered the backbone of technology infrastructure, are being overshadowed by positions that require a deep understanding of data analytics, machine learning, and advanced security protocols. The ability to leverage these technologies effectively will be crucial for professionals seeking to remain relevant in the workforce.

Moreover, the rise of remote work and digital collaboration tools has further accelerated the demand for tech-savvy professionals. Organizations are increasingly looking for individuals who can navigate complex digital ecosystems, manage virtual teams, and implement innovative solutions that drive efficiency and productivity. This shift has created new opportunities for those willing to adapt and learn, but it also poses challenges for individuals entrenched in traditional IT roles.

To address these challenges, companies must prioritize upskilling and reskilling initiatives that equip their workforce with the necessary competencies to thrive in a digital economy. This includes investing in training programs, mentorship opportunities, and partnerships with educational institutions to cultivate a pipeline of talent that meets the evolving needs of the industry. By fostering a culture of continuous learning, organizations can empower their employees to embrace change and seize new opportunities.

Furthermore, collaboration between industry stakeholders, government agencies, and educational institutions will be essential in addressing the talent gap. Initiatives aimed at promoting STEM education, vocational training, and digital literacy can help prepare the next generation of workers for the demands of a technology-driven economy. By aligning educational curricula with industry needs, we can ensure that graduates possess the skills and knowledge required to succeed in emerging fields.

As we look to the future, it is clear that the digital economy will continue to shape the landscape of work in India. The transition from traditional IT roles to positions focused on AI, cloud computing, and cybersecurity is not just a trend; it is a fundamental shift that will redefine the nature of work itself. Professionals must be proactive in adapting to these changes, embracing lifelong learning, and cultivating the skills necessary to thrive in an increasingly competitive job market.

In conclusion, the findings from the TeamLease Digital Skills and Salary Primer Report serve as a wake-up call for both individuals and organizations. The stagnation of legacy IT roles amidst the rapid growth of the digital economy highlights the urgent need for a strategic focus on future-ready skills. As India positions itself as a global leader in technology and innovation, the ability to adapt and evolve will be paramount for success. By prioritizing upskilling, fostering collaboration, and embracing change, we can navigate the challenges ahead and unlock the full potential of India’s digital economy.