AI anxiety spurs reskilling: Adaptability and creativity are Indian Tech’s new competitive edge
While the hiring spree continues, anxiety over AI-driven job losses persists. Over 80 percent of tech professionals worry about redundancy, yet more than half are already reskilling, according to an expert.
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Even as artificial intelligence automates more tasks across industries, Indian tech startups are far from cutting back on hiring. Instead, they are hiring smarter, prioritizing specialists over scale and depth over numbers.
The Shift from Headcount to Capability
“AI has become a defining force in reshaping India’s technology hiring landscape,” says Milind Shah, Managing Director, Randstad Digital India. The old formula of expanding headcount is giving way to capability-led workforce planning. Companies are building smaller, high-impact teams that blend technical expertise with adaptability and creativity.
Automation has eliminated many routine engineering roles, but it has simultaneously created a need for experts in AI integration, machine learning frameworks, data engineering, cloud transformation, and cybersecurity. In Shah’s view, hiring has become “more selective and aligned with business value.”
The shift is especially visible in how companies structure their teams. Permanent employees provide long-term stability, while contract-based professionals bring flexibility and niche expertise. “The larger industry direction today is less about scale and more about skill,” Shah adds. “AI has accelerated this shift, pushing companies to rethink talent structures, invest in internal academies, and prioritise continuous upskilling.”
AI Anxiety Meets the Learning Economy
While the hiring spree continues, anxiety over AI-driven job losses persists. Kapil Joshi, CEO of IT Staffing at Quess Corp, points out that over 80 percent of tech professionals worry about redundancy, yet more than half are already reskilling.
“To stay relevant amid accelerating AI adoption, Indian professionals need a blended strategy,” Joshi says. “Reskilling, specialization, and selective industry pivots are key.”
Training in generative AI, data analytics, cloud, and automation is no longer optional, it is essential. But the differentiators, Joshi insists, will be human-centric capabilities like problem-solving, adaptability, and leadership. “Those in vulnerable industries can pivot toward emerging sectors such as healthtech, fintech, and product engineering, where AI complements rather than replaces human roles,” he explains.
The most future-ready professionals, Joshi adds, are those who treat learning as a lifelong process, refreshing their skills every few months and maintaining a visible portfolio of applied work that blends technical and creative versatility.
Soft Skills 2.0: The New Competitive Edge
The AI era is redefining what counts as valuable. Beyond coding proficiency or AI fluency, it is soft skills such as curiosity, digital emotional intelligence, ethical judgment, and creativity that determine who thrives.
In surveys, over 80 percent of young professionals say empathy and communication will matter more than technical expertise. Yet, less than half of Indian graduates display strong creativity or learning agility. The result is a widening gap between technical proficiency and human capability.
Sachin Alug, CEO of NLB Services, said learning agility is often overlooked but increasingly valuable. In a market that prizes perfection and polished expertise, candidates with strong learning spirit stand out because they adapt faster than technology changes. Alongside it, digital emotional intelligence, human judgment, and creative problem-solving are becoming key differentiators. These skills help professionals work effectively with AI systems, interpret data responsibly, and find solutions where algorithms fall short. In the AI era, adaptability beats perfection.
Shah calls these traits “Soft Skills 2.0,” the adaptive human strengths that amplify what AI cannot replicate. Professionals who can interpret AI outputs responsibly, navigate hybrid teams, and make ethical decisions will increasingly define innovation in the coming decade.
India’s Advantage: From Cost to Capability
India’s edge in global tech hiring still rests on cost efficiency, with labor and operational expenses 30 to 60 percent lower than Western markets, but the bar has shifted. “The talent equation has evolved beyond low-cost execution toward high-quality delivery, niche expertise, and strategic capability,” says Joshi.
Demand for roles in AI, data science, cloud, and cybersecurity has surged 30 to 35 percent in the past year, with specialized professionals commanding 10 to 15 percent higher increments than generalists. This evolution reflects a maturing ecosystem where global firms now turn to India not just for scale but for innovation and value-driven collaboration.
The Contract Workforce Revolution
Parallel to this evolution is a quiet revolution in how tech talent is employed. Contract hiring has jumped sharply from 22 percent of all white-collar roles in 2020 to 35 percent in 2025, according to Sanketh Chengappa, Director and Business Head, Professional Staffing.
Startups and large enterprises alike are replacing full-time positions with six to twelve-month contracts, often extendable based on performance. “Companies prefer contract roles for several reasons: speed, flexibility, lower risk, and access to niche talent,” Chengappa says. Onboarding for such roles takes just 3 to 7 days compared to 30 to 60 for permanent hires.
For specialists, this model offers higher pay and creative freedom. For companies, it provides the agility to experiment with AI projects, scale teams quickly, and stay lean amid rapid technological change.
From Survival to Strategy
The fear that AI will hollow out jobs has not materialized the way many expected. Instead, it is forcing a quality-over-quantity rethink. Startups that once hired in bulk are now building compact, multi-skilled teams where technologists act as innovators and strategists alike.
As automation takes over repetitive tasks, India’s tech professionals, and the startups hiring them, are betting on something more enduring: the distinctly human capacity to learn, adapt, and lead in an age of intelligent machines.
