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Why India is Running Out of Skilled Engineers
- India is facing a talent crisis in Engineering and R&D-focused (ER&D) companies, with significant talent gaps expected to intensify as baby boomers retire and new graduates lag behind.
- Hiring demand for AI and data professionals in India grew by 38% to 45% between March 2024 and March 2025.
- There is a 51% demand-supply gap for AI talent in India, emphasizing the need for investments in building future-ready capabilities.
- Skilled engineers are increasingly required to have expertise in areas like AI, ML, NLP, and other advanced domains by product companies.
- Many midcareer engineers are transitioning into nonengineering roles, further reducing the pool of experienced technical professionals.
- The preference for managerial roles over technical roles due to higher salaries and broader exposure is contributing to the scarcity of qualified engineers in technical positions.
- Younger professionals, including early-career engineers, are likely to switch jobs within the next six months, exacerbating the turnover challenge.
- Engineers in India are drawn to tech companies for faster career progression, while traditional engineering firms offer slower advancement opportunities.
- UiPath, a product company deeply involved in core engineering tasks, faces challenges in hiring and prefers technical focus before managerial roles.
- As AI tools support coding, developers' roles are evolving, with new responsibilities emerging, and coding agents complementing human developers in specific areas.
- The emergence of AI-based roles and categorization of employees' skills as mainstream or premium highlight the changing landscape of talent requirements in ER&D companies.
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