Industry News | 8/29/2025

AI and Cloud Boom Widen IT Salary Gap

A new TeamLease Digital report shows a sharp split in IT pay: legacy roles are stagnating around ₹12 LPA, while high-demand AI, cloud, and cybersecurity posts command far higher salaries. The gulf signals a broader shift in India's digital economy, underscoring the urgent need for upskilling and a realignment of the talent pipeline.

The IT salary split is widening

If you thought the tech industry was all about one steady paycheck, think again. A recent TeamLease Digital report lays out a striking divergence in compensation across IT roles, driven by a whirlwind shift toward cloud-native platforms, automation, and AI. Picture a house with two floors: the ground floor houses legacy systems maintenance and basic IT support, while the upper floors are occupied by Generative AI engineers, cloud architects, and cybersecurity specialists. The stairs are steep, and the ascent comes with a much fatter salary.

What the report found

  • Legacy systems maintenance salaries are frozen at about ₹12 lakh per annum, year after year. That’s not stagnation in theory; it’s a concrete ceiling that’s not budging as companies migrate to modern stacks.
  • IT support salaries barely budge, creeping from ₹10.5 LPA to around ₹11 LPA by FY2027. When you pair that with rising living costs, the real value of those roles is slipping.
  • In contrast, top-tier digital-skill roles are on a tear: senior Generative AI engineers, MLOps specialists, and data scientists are landing in the ₹58-60 LPA range. Cybersecurity chiefs can reach up to ₹55 LPA, and seasoned Cloud Architects are pulling ₹45 LPA or more.

Why this is happening

  • The industry is pivoting away from traditional IT infrastructure toward agile, intelligent, and secure digital frameworks. Think automation of repetitive tasks, cloud-native platforms, and outsourced service models that reduce the need for in-house maintenance.
  • The “digital skills gap” is real and painful. The report highlights a stubborn demand-supply mismatch: for every 10 open Generative AI roles, only one qualified engineer is available. A similar gap exists in cloud computing, with demand outstripping supply by 55-60%.
  • Global Capability Centers (GCCs) are leading the hiring surge, often offering salaries up to 20% higher than traditional IT service firms. They’re absorbing talent not just for tech hubs, but also for BFSI, manufacturing, and healthcare, making the competition for digital skills global rather than local.

The human angle

  • For workers, this isn’t just about money. It’s about career trajectories and the possibility of staying relevant in a rapidly changing landscape. The report notes that workers who upskill into AI or data-science paths can see salary bumps of 25-45% within a year.
  • For many already in legacy roles, there’s a choice: ride the old rails with stagnant pay or pivot toward the future and potentially unlock higher earnings. The path isn’t a straight line, but the potential rewards are clear.

Implications for businesses and policy

  • Companies are redesigning talent pipelines around the skills they need to compete in a digital economy. That means prioritizing reskilling, early-upskilling, and new-hire programs that tilt toward cloud, AI, and security.
  • GCCs—long a feature of multinational tech strategies—are proving to be engines of higher wages and more ambitious hiring. This dynamic could reshape where and how tech jobs are created in India and beyond.
  • Non-tech sectors are feeling the ripple effects. Banking, financial services, manufacturing, and healthcare are increasingly in the talent race for the same pool of AI and cloud experts, pushing organizations to rethink compensation, career paths, and remote-work policies.

The road ahead

  • The report’s bottom line is pragmatic: continuous learning isn’t optional anymore. It’s a job-safety measure. Transitioning into AI or data-science roles can meaningfully increase earnings and long-term career resilience.
  • Policymakers and industry leaders should coordinate large-scale skilling initiatives to bridge the talent gap. Without proactive investment in training and education, the promised growth of the digital economy risks becoming uneven, leaving behind workers who can’t easily switch tracks.

A practical takeaway

If you’re early in your IT career, or if you’re a manager thinking about long-term staffing, here’s a simple framework:

  1. Audit current skills against market demand. 2) Identify at least two AI/cloud/cybersecurity domains with strong salary signals. 3) Create a 6–12 month upskilling plan that includes hands-on projects, certifications, and mentorship. 4) Track progress with concrete milestones and adjust based on hiring demand signals.

In short, the era of uniform IT salaries is fading. The real payoffs lie in chasing the in-demand digital skills and staying adaptable as the tech landscape keeps evolving.