As AI adoption and advancement increase, IT companies are shifting focus from traditional roles like system and DevOps engineers to new-age roles that combine skills in AI, machine learning (ML), data analytics, and robotic process automation (RPA).
Krishna Vij, business head at TeamLease Digital, said, “The rise of AI and automation is reducing the demand for traditional system and DevOps engineers, but also creating new opportunities in AI-related fields”.
There has been a noticeable decline in the demand for system engineers, with a 29% drop from fiscal 2022 to fiscal 2023 and a further 64% drop from FY23 to FY24, according to Kapil Joshi, deputy CEO of Quess IT Staffing.
“This decrease primarily reflects a period of adjustment after significant hiring sprees in previous years and a temporary slowdown in certain sectors. However, demand for system engineers has been picking up in other areas as industries increasingly adopt digital transformation strategies.”
Infosys, which recorded an unprecedented hiring spree in 2022, is now grappling with delays in onboarding over 500 freshers, many of whom have been waiting for more than two years.
However, the IT company said that it is “honouring all the offers that it has made… As onboarding is always aligned with client requirements, we spread the joining dates of various batches to align with changes in project schedules and to ensure employees have access to the right training,” an Infosys spokesperson had told FE.
The traditional roles of system engineers are being transformed rather than entirely replaced by AI, experts said. “AI is not expected to fully replace system engineers; rather, it will transform their roles and create new opportunities. AI complements system engineers by automating routine tasks, allowing them to focus on strategic and innovative activities,” Vij said.
However, roles like data entry, customer service, technical support, traditional software developers, and network and system administrators are under greater threat from AI advancements.
Krish Ramineni, CEO and co-founder of Fireflies.ai, observes a significant shift in the hiring landscape. “From 2022 to 2024, there has been a more than 50% increase in job openings related to AI and machine learning. On the flip side, traditional engineering roles like frontend, mobile, and backend development have seen a decline of about 20%. Tools like GitHub Copilot, which are now writing 40% of code for engineers, are a testament to this shift,” he said.
The demand is currently strong for roles that combine traditional engineering skills with expertise in AI, ML, data analytics, and robotic process automation (RPA).
Milind Shah, managing director of Randstad Digital in India, said, “Companies are prioritising individuals with expertise in AI integration, knowledge of ML frameworks, understanding of data structures and algorithms, and other advanced system designs rather than those who are merely acquainted with conventional skill sets”.
Despite the decline in traditional roles, the need for skilled professionals who can leverage these technologies effectively continues to grow. Further, the role of software engineers, while evolving, remains secure for the foreseeable future.
In India, the demand for skilled software engineers remains strong, with 5.2 million professionals already active and this demand is projected to rise from 17% in 2023 to 22% in 2025, requiring nearly 1.1 million engineers by then, Vij said.
Further with IT firms like Infosys, Wipro, and LTIMindtree, along with mid-tier ones, reporting multi-year high utilisation rates during the April-June period, hiring of freshers is expected to gain pace in this fiscal year. Additionally, Global Capability Centres (GCCs) are also said to continue hiring freshers as well as senior-level staffers.
