India’s non-tech sector (banking, healthcare, retail), currently employing over 7.65 lakh tech professionals, is exhibiting a demand for more tech talent. Industry experts have pointed out that at a 7.53% CAGR, the sector is poised to touch 11.15 lakh in tech talent employment by FY 2027-28.
“Some traditional non-tech sectors are ramping up tech hiring because of the convergence of technology with business operations. The adoption of AI, IoT, cloud computing, data analytics, and automation is no longer limited to tech companies and is crucial for the growth and competitiveness in other industries,” said Neeti Sharma, CEO, of TeamLease Digital, adding that digital transformation, customer experience enhancement, and sustainability goals are key drivers of this demand.
Sectors like banking, financial services and insurance (BFSI), and retail are poised to grow and create around 2.75 lakh and 2.9 lakh tech jobs respectively, rising at 37.5 per cent and 56.76 per cent, from 2022.
Demand dip in IT to push non-tech opportunities
Sharma explained that in the short run, employment opportunities in the non-tech sectors will be advantageous to job seekers, who are unable to secure jobs with IT companies due to the low demand.
It also introduces greater competition for specialised skills like AI, data science, cloud computing, and cybersecurity. Non-tech sectors are ramping up digital transformation efforts and may offer attractive roles with competitive salaries and specialised opportunities that appeal to tech professionals, she noted, adding this could force IT/ITeS companies to rethink their recruitment strategies, compensation packages, and retention initiatives.
Further, Sundar Eshwar, Business Head, IT Staffing of Xpheno, a specialist staffing company, noted that the tech in non-tech companies in the Indian IT talent pyramid is a significant cohort, with its talent pool having grown from 3.5 lakh in FY2021 to a little under 5.5 lakh at present.
“The nearly 60% growth in headcount with almost 2 lakh net additions is significant given the sluggish market conditions over the last two years. The cohort has achieved net growth, after tackling attrition in the 14% - 18% range. The gross hiring activity, as a sum of replacement hiring and expansion, in the cohort is over 2.75 lakh over the last 3 years.”
He added the top non-tech sectors based on the talent count growth in the last three quarters are banking, healthcare, manufacturing, oil & gas, automotive, accounting & auditing, financial services, and investment management.
Absorbing talent from IT cos
Alongside, top non-tech sectors, apart from exchanging tech talent among themselves, have also absorbed talent from IT services, software products, tech start-ups, and IT consulting players, said Eshwar. “Nearly 45% of the tech talent absorbed by the non-tech sector comes from the IT services and software products’ cohorts.”
The roles tech talent is engaged in with non-tech sectors vary widely from system engineers to data scientists and CTOs at the other end. The popular roles are data analysts, system engineers/administrators, MIS executives, IT managers, data engineer, IT specialist and network engineer.
“It’s increasingly important to amalgamate technology in our fields. Clinically, the advent of robotics in surgery has become important. For example, at Sparsh hospitals, almost all joint replacements are done by robotics. Some surgical procedures like GI surgery, urology, and gynecology procedures are done by the Da Vinci Robot, so we must integrate technology for efficient patient outcomes,” said Joseph Pasangha, Group Chief Operating Officer, SPARSH Group of Hospitals.
He said hospitals now have CTOs, which was not heard of years ago. “We get these business intelligence and AI tools to predict business as well. Also, we don’t have people sitting and writing mundane excel sheets, so electronic medical records (EMRs) are driven by technology. We hire people from IT and software backgrounds to drive these technology initiatives.”
Exit of talent may put pressure on IT
Sharma also observed that as demand for tech talent in non-tech sectors is expected to grow by around 56 per cent by FY 2027, IT firms may face pressure to compete more aggressively for top talent.
“However, this trend is also an opportunity for IT/ITeS companies to position themselves as strategic digital transformation partners. By offering outsourced solutions, consulting, and managed services to sectors like BFSI and healthcare, they can create new revenue streams without expanding their tech workforce.”
Overall, while this hiring trend may ease immediate burdens, it also calls for IT firms to navigate increased competition and leverage new business models, she added.