India’s AI talent fuels global hiring surge

India is emerging as a global AI talent hub, with countries like the US, UK, Germany, and Singapore hiring remote professionals at nearly half the local cost. Startups are driving this trend, with AI researchers, data scientists, and prompt engineers among the most in-demand roles.

Remote Indian workers earn nearly double the median local pay, and freelancing platforms like Upwork and Fiverr report a surge in AI-skilled professionals from India.

India is becoming a key hub for AI talent, attracting hiring interest from the US, UK, Singapore, Sweden, Germany, and Canada. These countries are leveraging India’s skilled workforce for full-time, contractual, and freelance roles at nearly half the cost, avoiding immigration hurdles.

A survey by global HR firm Deel revealed that 69% of global businesses already have employees outside India, with startups leading the trend at 88%. The US witnessed a 135% year-on-year increase in hiring from India in 2024. Bangalore has emerged as the fourth most hired-from city in the Asia-Pacific region.

“With the world’s third-largest startup ecosystem, India is at the center of this hiring boom,” said Sumit Sabharwal, Deel’s India country leader. He emphasized that AI startups with strong talent secure high early-stage valuations, as investors focus on future potential rather than immediate profitability. Deel projects India’s AI workforce to grow from 600,000 in 2022 to over 1.25 million by 2027.

Recruitment tech firm Supersourcing has assisted 35 AI startups and companies in filling positions. According to co-founder Mayank Pratap Singh, Germany, the US, and Singapore have increased remote hiring from India by 50% to retain top talent at lower costs.

AI researchers and data scientists with expertise in machine learning, natural language processing, computer vision, and model fine-tuning are in high demand. At junior levels, prompt engineers, AI artists, and video editors are the most sought after, while AI ethicists are serving as consultants.

Indian remote employees earn nearly double the median pay of local roles, with Deel reporting US$ 25,000 in annualized compensation compared to US$ 13,000 for non-remote jobs. EOR services enable businesses to hire globally without setting up local entities.

Freelancing platforms like Upwork, Appen, and Fiverr are experiencing a surge in demand for AI-skilled workers, with Indian professionals ranking among top-tier freelancers. “Independent professionals on Upwork, including those in India, often earn significantly more than local skilled labor averages—almost ten times in some cases—thanks to the ability to set their own rates,” said Ted Liu, an economics research manager at Upwork.

India’s combination of a vast talent pool, STEM expertise, and strong English proficiency makes it a preferred destination for global hiring. “Whilst this is also comparable with other low-cost nations like the Philippines, one underestimated advantage is the large talent pool, which provides benefits in terms of the quality and speed,” said Eric de Cavaignac, chief transformation officer at Appen.