“AI is certainly affecting employment, especially within sectors like IT, BPO, education, media, and entertainment,” stated Ramani Dathi, Chief Financial Officer at Teamlease Services. This impact is most pronounced for individuals with zero to four years of experience, with companies reducing hiring and salary increases facing pressure.
However, the effects are not uniform across all sectors. There is significant growth in AI and machine learning roles. “In Global Capability Centres (GCCs), job growth related to AI has been extraordinarily high—ranging from 30% to 50%,” mentioned Pavan Goyal, Chief Business Officer at Naukri.com. The GCC sector itself has expanded by 10% over the past year, propelled by AI-focused positions.
Interestingly, BPO—commonly viewed as susceptible to automation—has remained resilient. “BPO positions in the sub-₹5 lakh range are still highly sought after, surpassing supply,” Goyal explained, defying the notion that automation would swiftly eliminate customer support roles.
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The job market is evolving into two distinct paths. Senior professionals and those with specialized skills such as AI, machine learning (ML), cloud computing, and cybersecurity are attracting higher salaries, while routine positions and entry-level hiring face scrutiny. “Possessing AI skills greatly increases your chances of securing a job,” Goyal noted, highlighting the considerable pay disparity between AI engineers and conventional software engineers.
The pressing question persists: Is AI generating more jobs or eliminating them? Goyal encapsulates it succinctly: “Will companies achieve more with fewer resources or more with increased resources?”
As some roles may diminish due to rising productivity, new opportunities are concurrently surfacing.
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So far, large IT companies have not declared any substantial cuts in campus hiring or layoffs related to AI. Many are focusing on upskilling their workforce to prepare for AI integration.
Nonetheless, both experts caution that entry-level hiring could continue to be sluggish in the near term, even if AI eventually fosters new roles over time.
TeamLease Services currently holds a market capitalisation of approximately ₹3,345 crore, with its shares declining nearly 33% over the past year. In comparison, Info Edge (India)—the parent company of Naukri.com—has a market cap of ₹97,003 crore, and its shares have appreciated by about 12% during the same timeframe.
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