Indian companies are increasingly turning to contract and outsourced hiring as AI related uncertainty has firms rethinking their workforce planning, a top executive at staffing firm TeamLease Services said on Thursday. Firms across sectors are slowing hiring and reassessing headcount needs as they experiment with AI-led automation, even as India remains a key global hiring market for multinational companies and global capability centres, Chief Financial Officer Ramani Dathi told Reuters in an interview. "Firms that cut staff (numbers) by 50% after adopting AI tools were coming back within months saying they still needed people to manage them," Dathi said, adding that the company was advising clients to keep 20%-30% of their workforce on outsourced or variable models. The comments highlight a broader shift in hiring, with companies pivoting to flexible staffing and AI-led workforce realignments even as demand grows for specialised tech talent and GCCs expand beyond IT roles. A report by job search portal Indeed and IT industry body Nasscom released on Thursday found nearly all organisations expect their 2026 workforce strategy to centre on AI-related or AI-supported roles, while 40% expect a major workforce rejig. Teamlease, which manages more than 340,000 associates and trainees, said it is currently able to fill only about 30% of open positions from clients because of mismatches on salary expectations, location preferences and required skills. Nearly one-third of TeamLease's GCC workforce are now in non-IT roles, Dathi said. The company is also seeing rising demand for cybersecurity professionals with AI specialization, with firms willing to pay 30%-40% salary premiums for such talent, she added. The trend mirrors broader industry demand, with the Indeed-Nasscom report showing nearly two thirds of employers across industries had increased hiring for AI-related roles over the past year, led by sectors such as banking, finance services, insurance and telecommunications. `
India hiring tilts toward contracts as AI prompts workforce rethink, TeamLease says
Indian firms are shifting to contract and outsourced hiring. This change comes as companies reassess their workforce needs due to AI automation. Many organizations expect AI-related roles to dominate their future strategies. Demand for specialized tech talent, especially in cybersecurity with AI skills, is growing. Companies are willing to pay more for these professionals.










