Indian IT sector offers Rs 1 crore salaries for AI and cloud experts amid layoffs

NEW DELHI: Despite widespread restructuring and workforce reductions across the Indian information technology sector, professionals possessing specialised capabilities in artificial intelligence, data engineering, cloud computing and cybersecurity are commanding substantial salary premiums. A recent industry report indicates that compensation for these niche roles frequently exceeds Rs 1 crore annually, highlighting a sharp divergence in talent valuation.

The Indian technology labour market is undergoing a significant transition, moving away from uniform compensation towards skill-differentiated pay structures. Neeti Sharma, CEO of TeamLease Digital, noted that the market has crossed a threshold where traditional job titles no longer reliably indicate capability or compensation. This shift is occurring even as major IT firms execute large-scale layoffs; for instance, industry data points to tens of thousands of job cuts in the sector over the past year due to skill mismatches and automation.

According to the TeamLease Digital report on Digital Skills and Salary Primer for FY2026-27, the highest premiums are concentrated in four core families: AI, Data, Cloud, and Cybersecurity. The median annual salary for AI Architects with over 15 years of experience stands at Rs 1.08 crore, while Industrial Data Architects and OT Security Architects command Rs 1.02 crore and Rs 95.8 lakh, respectively. Entry-level median pay for AI-core roles is Rs 13.2 lakh, significantly higher than the Rs 4.8-5.4 lakh for AI-support positions. Milind Shah, Managing Director of Randstad Digital India, observed that talent with niche technical skills typically commands a 10-25% salary premium based on expertise depth and business impact.

The disparity in compensation is primarily driven by a severe shortage of specialised talent and the direct business value these roles generate. Sharma pointed out that merely 16% of India’s IT workforce currently holds AI skills, creating a thin supply of professionals capable of scaling AI systems from pilot to production. This is not merely wage inflation, but a market pricing mechanism for roles where the output is the AI system itself, making them difficult to substitute. Consequently, routine and execution-led roles are facing salary stagnation, as companies automate these functions. Interestingly, geographical location is becoming less of a determinant for high pay; the report notes that a GenAI engineer in Indore can earn Rs 16.5 lakh, outpacing cybersecurity professionals in Bengaluru who earn Rs 14.4 lakh.

For IT professionals, the evolving landscape underscores the critical need for continuous reskilling. Industry experts suggest transitioning from traditional testing and maintenance roles into intelligent operations, decision intelligence, and platform governance to remain competitive. Pathways for mid-career professionals include moving into platform product management, ensuring they align with the new valuation metrics of the digital workforce.