Hyderabad IT sector nears 1 mn workforce as AI reshapes future jobs

Hyderabad: The global technology industry is undergoing a major transformation driven by artificial intelligence, changing skill requirements and the rapid expansion of digital infrastructure, HYSEA leaders Prashanth Nandella and Bipin Pendyala said, highlighting that the future workforce must be prepared to adapt to constant technological shifts.

Speaking to media, technology leaders said the world currently hosts around 12,000 data centres, and another 3,000 are expected to be built in the near future, signalling the scale of growth in digital infrastructure and the potential for new employment opportunities.

However, they noted that while data centres support the technology ecosystem, they may not directly generate large IT employment. Instead, the emerging technology landscape is expected to create new types of roles and skills.

One of the new roles being discussed is that of an “agent orchestrator”, a professional responsible for managing and coordinating multiple AI agents to achieve specific outcomes. Another emerging role is that of a coach who helps employees collaborate effectively with AI systems, integrating them as part of workplace teams.

Industry experts emphasised that the future remains uncertain, and organisations must focus on preparing employees to adapt to rapid technological change.

“We may not clearly know what the future holds, but the best approach is to prepare people for ambiguity and transformation. Continuous learning and the ability to adapt quickly will be critical,” Prashanth and Bipin said.

They added that companies are encouraging employees to understand how to use generative AI tools effectively and identify practical use cases rather than adopting technology merely for its novelty. Experts also stressed that domain expertise will become increasingly important in the AI era. For example, professionals such as editors, engineers, or designers who understand their fields deeply will benefit most from AI tools, using them to enhance productivity and improve outcomes.

“AI is like a partner. Those who understand how to use it effectively within their domain will succeed in the future,” they claimed.

Hybrid skills needed for future workforce

Industry leaders highlighted the need for hybrid education models combining core engineering disciplines with digital technologies such as AI and data science.

For instance, civil engineers who can leverage AI for design optimisation or structural analysis will be in high demand. They cautioned that the growing preference for purely software-oriented careers has led to declining interest in core engineering fields.

To address this gap, industry bodies are working with educational institutions to promote integrated learning approaches that combine engineering fundamentals with advanced technology skills.

Lifelong learning essential

Industry experts noted that the rapid pace of technological change requires professionals to continuously update their skills.

“The mindset should not just be about reskilling or upskilling. It is about new-skilling every day,” the speaker said, emphasising the importance of lifelong learning.

They added that India's strong talent base and ability to adapt quickly could position the country as a net creator of jobs in the evolving global technology ecosystem.

Hyderabad IT industry growth

Providing an update on the city’s technology sector, industry representatives said the Hyderabad IT ecosystem now employs close to one million people, with software exports estimated at around Rs3.2 lakh crore.

The city has also witnessed significant expansion of large technology campuses. Companies such as Infosys, Tata Consultancy Services, Wipro and Coforge operate some of their largest facilities in Hyderabad.

Growth is being driven by both traditional IT services firms and the rapid expansion of Global Capability Centres (GCCs) set up by multinational corporations.

Industry associations currently have around 420 member companies, representing nearly 90 per cent of the technology workforce in the region. However, experts noted that official employment and revenue figures may underestimate the sector’s true scale because thousands of startups and small technology firms are not always included in official data sources such as the Software Technology Parks of India statistics.

Startup ecosystem seen as key driver

HYSEA leaders emphasised the need to strengthen the startup ecosystem to generate future employment.

“If the state can produce several unicorn startups in the next three to five years, it will create significant jobs, talent and innovation,” they said.

Global markets and geopolitical risks

On the global front, industry representatives said the United States continues to account for nearly 60 per cent of revenue for many Indian technology companies, followed by Europe.

Markets in the Middle East—including Saudi Arabia, the UAE, Qatar and Bahrain—also contribute business, particularly through government and energy sector projects, though their share of overall revenue remains relatively small.While geopolitical developments such as regional conflicts may cause short-term uncertainty, industry leaders expressed confidence that the technology sector would adapt and continue to grow.

Expansion to Tier-2 cities

Regarding expansion beyond Hyderabad, experts said companies are exploring Tier-2 and Tier-3 cities, particularly for operational roles. However, attracting specialised talent in emerging technologies such as AI and cloud computing remains a challenge outside major metropolitan areas.

As a result, companies are increasingly adopting a “hub-and-spoke” model, where advanced technology roles are based in metro hubs while supporting teams operate from smaller cities.Industry leaders concluded that the biggest challenge ahead is not geopolitical uncertainty but building the right talent for the future technology economy.