AI and Cloud Boom Creates Stark IT Salary Divide

A profound shift is underway in the information technology landscape, creating a stark economic divide between the architects of the future and the custodians of the past. A recent report from TeamLease Digital, a specialist staffing firm, reveals that while India's digital economy is surging, traditional IT roles are experiencing significant salary stagnation, creating a workforce in jeopardy of being left behind. The "Digital Skills and Salary Primer Report for FY2025-26" paints a clear picture: skills in high-demand areas such as Generative AI, cloud computing, and cybersecurity are commanding record-high salaries, while compensation for legacy system maintenance and IT support remains virtually flat. This growing disparity underscores a critical turning point for the IT industry, signaling an urgent need for widespread upskilling and a strategic realignment of the talent pipeline to meet the demands of a rapidly evolving digital ecosystem.

The core of the issue lies in a dramatic pivot away from traditional IT infrastructure and towards more agile, intelligent, and secure digital frameworks. According to the TeamLease Digital report, salaries for roles like legacy systems maintenance are completely stagnant, holding steady at around ₹12 lakh per annum (LPA).[1][2][3][4][5] Similarly, IT support roles show only marginal growth, with projected salaries inching from ₹10.5 LPA to just ₹11 LPA by fiscal year 2027.[1][3] This financial standstill is a direct consequence of the industry's shift towards cloud-native platforms and outsourced service models, which are rendering many traditional in-house support and maintenance functions obsolete.[1][4] The automation of repetitive tasks, a key driver of this change, further diminishes the value placed on manual oversight of older systems.[6][7] As companies aggressively pursue digital transformation to stay competitive, the budget and focus are overwhelmingly directed towards innovation and future-proofing, leaving the maintenance of outdated systems as a low-priority, low-compensation area of the IT job market.

In stark contrast to the stagnation in legacy fields, professionals equipped with new-age digital skills are experiencing a salary boom fueled by intense demand and a severe talent shortage. The report highlights that senior professionals in specialized fields like Generative AI engineering and Machine Learning Operations (MLOps) can now command salaries between ₹58-60 LPA.[1][8] Cybersecurity experts are also highly sought after, with senior roles fetching up to ₹55 lakh annually, while senior Cloud Architects can earn up to ₹45 lakh.[9][2] This surge in compensation is a direct market response to a critical skills gap.[10] The report reveals a staggering mismatch between demand and supply; for every 10 open Generative AI positions, only one qualified engineer is available.[9][8][3] This talent deficit is projected to worsen, with the AI talent gap potentially reaching 53% by 2026.[9][2][3] A similar chasm exists in cloud computing, which faces a projected demand-supply mismatch of 55-60%.[9][8][3] This scarcity forces companies to offer premium salaries to attract and retain the handful of experts who can build, secure, and scale the next generation of digital infrastructure.

The implications of this widening gap extend beyond individual paychecks, reshaping the very structure of the tech industry and the nature of employment. Global Capability Centers (GCCs) are emerging as major drivers of this digital hiring wave, projected to contribute over 22-25% of new white-collar tech jobs in 2025.[9][2] These centers are aggressively hiring for AI and cloud roles and are often offering salaries up to 20% higher than traditional IT service firms.[11] This trend is also influencing hiring in non-tech sectors like banking, financial services, and insurance (BFSI), manufacturing, and healthcare, which are increasingly competing for the same pool of digital talent to drive their own transformation initiatives.[9][3] For the workforce, the message is unequivocal: continuous learning and upskilling are no longer optional but essential for career survival and growth.[6] The report notes that professionals who transition into AI or data science roles through upskilling can see salary increases of 25-45% within a year, highlighting a clear pathway for those willing to adapt.[8][12]

In conclusion, the findings from the TeamLease Digital report serve as a critical barometer for the health and direction of the IT job market. The stagnation of legacy roles is not a temporary anomaly but a permanent feature of an industry being redefined by automation and artificial intelligence. The record salaries in GenAI, cloud, and cybersecurity are a clear indicator of where future value and opportunities lie. This bifurcation creates both a significant challenge and a massive opportunity. It threatens to create a disenfranchised class of IT professionals with outdated skills, while simultaneously offering immense rewards for those who can master the technologies of the digital economy. For businesses, policymakers, and individual professionals, the path forward requires a concerted and urgent focus on large-scale skilling initiatives to bridge the talent gap, ensuring that the growth of the digital economy is both robust and inclusive.