The demand for AI talent is outstripping supply as companies worldwide scramble to hire skilled engineers, data scientists, and machine-learning specialists. India, in particular, is feeling the effects of the talent shortage. The country has long been a source of affordable workers for the tech industry, but even India is now struggling to find the skilled talent it needs to fill critical roles.
According to the trade group Nasscom, there are currently about 416,000 people working in AI and data science in India, but demand for another 213,000 is projected. In a February report, Nasscom warned that the proportion of unfilled job roles is approximately 51% of the current installed talent base, which could hinder growth. “There’s a real shortage of data and AI talent,” said Aditya Chopra, a data-science specialist outside New Delhi.
The talent shortage is not limited to the tech industry. Companies in almost every other field, including healthcare, finance, and entertainment, are also staffing to avoid being blindsided by industry shifts. Rahul Shah, the co-founder of WalkWater Talent Advisors, a headhunter for top-level workers, said there’s an “insatiable need for talent.” He added, “AI can’t be outsourced; it’s core to the organization.”
Recruitment stories from India verge on the absurd. In one search by Shah’s firm, the new employer more than doubled a candidate’s pay. In another case, a rival suitor had offered an engineer a BMW motorcycle as a sign-on bonus. “That’s a line I’m not comfortable approaching,” said Freedom Dumlao, chief technology officer of Flexcar.
While tech giants like Google and Microsoft have set up their operations in India, hiring thousands of locals, the seemingly endless supply of affordable labor is running short in critical fields. According to Nasscom, Tata Consultancy Services Ltd. invented the model for modern outsourcing, employing over five million people in tech services in India. However, the rush for AI talent quickly depletes the talent pool, putting pressure on companies to offer top-notch packages to attract and retain talent.
