Data Science Industry Report – How Global Recession is Impacting Indian Data Job Market

The global tech slowdown is undeniable, with its effects felt across all industries, including the IT sector. However, the situation is not set in stone. New data suggests India’s GDP will see an average of 7.3% growth between 2023-25 (as of July 2024), hinting at a stronger-than-expected market growth.

This begs the question: Could the data science market be one of the sectors that can rebound? Are data job roles recession-proof? What changes might we see shortly? How do you stay relevant during such slowdowns? What should emerging data professionals do to sail through?

Our latest Data Science Market Research Report answers all these persisting questions. Download the report for FREE. What you will learn?

• A comprehensive study of the present data landscape in India
• Understand how the ongoing recession is affecting hiring, upskilling, and salary fluctuations
• Detailed understanding of how hirings have changed from 2019 to 2024 and what the future looks like
• Learn how global pandemics and political situations are having a direct impact on jobs in India
• How to stay relevant and continue to upskill in the face of recession and a hiring freeze, and roadmap to build a lucrative career

Global Recession and Data Science Market Research Report 2024

This data science market research report, powered by AnalytixLabs, is a market study on how the global hiring slowdown affects the data domain . This market research goes deep into evaluating the pre- and post-COVID-19 pandemic hiring scenarios and draws concrete conclusions on what and how emerging and experienced data professionals should stay relevant. 

From insights from industry leaders associated with leading Fortune 500 companies to student testimonials on the changing landscape, this report presents a cohesive picture of whether the data science job market is immune to recession and why. 

The report will start by analyzing the present market scenario before tracing the changes in the past five years. 

P.S.  This report focuses specifically on the Indian data market. 

Data Science Market in India in 2024

• 8.4% growth rate in Q3 2024
• 8.2% GDP Y-o-Y

Tech hiring in India is slower than usual due to the funding slowdown, but the good news is that hiring managers are steadily (but cautiously) expanding their teams. 

The challenge is the impending skill gap. 

Although hiring is picking up, a broader skill gap is emerging as companies focus more on investing in AI and ML solutions. This may have sealed various white-collar jobs, but it has also paved the way for new roles amalgamating existing ones. As a result, it requires one professional to wear multiple hats. 

This is where the skill gap is emerging. For instance, a data scientist needs to expand their skills and take up responsibilities that might otherwise align with an analyst or data engineer. 

Despite these challenges, India’s data science and analytics market is experiencing staggering growth.

Innovation is backing the growth trajectory of India’s data science and analytics market. The country is home to leading global giants’ research and development centers that foster data innovations and leverage a huge talent pool.

• AI market $7.8 billion by 2025 clocking a 20.2% CAGR in the next five years

Is the Indian Data Science and Analytics Market Immune to Ongoing Recession?

The immediate reality checks that pushed companies into adjusting their budget and workforce include the following – 

• The global pandemic pushed users to become more digital, but businesses could not foresee economic interdependence and geopolitical unrest in several parts of the world. 
• Suddenly, certain products or services went out of demand, leading to declining consumer spending. 
• Various roles became redundant when the workforce moved to remote or hybrid work models. As a result, companies started seeing job roles that they could do without. For instance, when your entire team is remote, you don’t need an HR coordinator. Such roles that made sense in an office workspace started fading out. 
• The pandemic caused losses of billions and trillions. The losses were thousands or lakhs for smaller companies, but they were still there. As a result, companies started cutting down their budgets post-pandemic to make up for these losses. The bigger the loss, the larger the cutdown. 
• The shift to digital services remained permanent, quickly altering consumer behavior and demands. Companies were compelled to realign workforces to adjust to these changes.

Companies that are contributing to the growth and expansion of innovation-led ventures are also on the frontline when it comes to layoffs.

The answer is NO. No country or industry can escape the ripple effects of global events. Whether it is a pandemic or geopolitical unrest in other parts of the world, India, like all other countries, will be affected.

The Data Landscape in India in 2019-2024 – A Comparative Study

How Did India Recover? 

While the world went into a frenzy due to the pandemic, it became more digital than ever. Every aspect of the world was becoming contactless – the most prominent being payments and transactions. Even the smallest vendor started using UPI-based payment apps like Google Pay, PayTM, and PhonePe. 

The Changing Data Landscape in India: 2022-2024

According to our Data Science Salary 2023 Report insights, the data landscape has seen a major uphaul regarding salary. 

This is a major indicator of the seismic shifts in data science and analytics. Salary for data professionals are directly proportional to four core factors – 

1. Current market scenario
2. Location
3. Experience
4. Company Type

Putting this into perspective, we researched and reported the following changes in our Data Science Market Research Salary 2023 report – 

Career opportunities in data have grown exponentially. Research shows a 60% increase in the median salary from 2015 to 2023, indicating the demand for data professionals has increased. A recent report by IBM predicts almost 2.7 lakh new job openings for data professionals by the end of 2024, indicating a 28% rise in job opportunities. 

Data Science Job Demands: 

• Q2, 2021: 21,500 open job roles
• Q2, 2022: 32,400 open job roles
• Q2, 2023: 76,780 open job roles
• Q2, 2024: 98,000 open job roles

How is the Global Recession Impacting the Data Job Market?

The National Bureau of Economic Research (NBER) defines a recession as a significant drop in economic activity in a nation that can last more than a few months. Understanding the causes of recession will mean examining a nuanced assessment of the economy’s stature. 

• Going by the thumb rule, India entered a recession when the nation went into a lockdown to stop the spread of Coronavirus. During this time, India’s GDP hit rock bottom in two consecutive quarters. In the first half of 2020-21, the GDP contracted by 23.4% in April-June 2020 and 5.7% in July-September 2020. 
• However, India quickly bounced back and has been recovering ever since. According to the Commerce Ministry and Reserve Bank of India, India’s merchandise exports were 3.1% in January 2024, a leap from -12.7% in April 2023.

India is not immune to the global slowdown. Any global disruptions can directly impact the nation’s domestic economic activity.

For instance, merchandise exports have been fluctuating since June 2023. The Red Sea Crisis in October 2023 also affected India’s domestic economic activities since most of its imports and exports are exposed to the Red Sea route.

Economic inflation is not a one-day problem that will disappear quickly. Although India’s data domain has picked up well since the pandemic, the pace still needs to catch up. The primary causes are: 

1. Changes in the consumption and spending patterns in India
2. The widespread disruption and adoption of AI-driven solutions

 Does this mean AI is replacing various job roles?  No. 

Impact of Tech Slowdown on the Indian Data Field

The global economy is experiencing a slowdown across all industries. This pushes businesses to cut costs, and workforce reduction is one of the most effective measures. The seismic shift in consumer demands and preferences has forced companies to reevaluate their offerings and align their businesses with futuristic market predictions. 

Companies heavily invest in automation and technological developments, making several job roles redundant. This is more pronounced in the tech and finance domain, where companies are undergoing financial restructuring to strengthen their digital foothold. 

India is no exception to this trend. The global slowdown is a core factor in mass layoffs despite all domestic economic growth. Consequently, India is also considering a data—and AI-driven approach, which means new roles are opening up.

The salary fluctuations were hardly noticeable until 2020, when the COVID-19 pandemic hit, causing the world to lock down for months. 

Highlights from 2024 – 

• The median salary of a data analytics professional in 2024 is 15.1 LPA.
• The pharmaceutical and Healthcare industries show consistent growth, with salaries varying from 7.8 LPA to 19.8 LPA across all experience levels. 
• A notable jump is seen in the transition from entry-level (0-3 years) to mid-level (3-6 years), indicating that professionals gain skills quickly in a few years of experience. The transition to higher experience levels is more modest, especially between 6 and 12 years. Again, after 12 years, there is a significant jump in salary.
• Roles like data scientist and data architect, which require more command of advanced analytical skills and strategic data management, have higher median salaries, starting at 13.3 LPA and 12.5 LPA, respectively. 
• Startups offer lesser median salaries than established IT service providers, indicating the differences in resources and financial constraints. 

The median salary for data professionals decreased in 2023 but steadily picked up in 2024. As more organizations invest in data and AI-driven solutions, the median salary will continue to rise.

The Aftermath of Hiring Freeze and Layoffs

The hiring spree during the pandemic is now countered with mass layoffs and hiring freezes. This phase-down has allowed companies to cool off and realign their budget and company goals. The situation is temporary as companies slowly and cautiously lift the freeze. 

While it has impacted thousands of qualified data professionals, the brighter side is that new roles are opening up. As companies gear up to allocate more budget for AI and automation, the new roles will require specialists in the data domain to take control of how to leverage AI and automation. 

According to recent salary insights from Glassdoor, roles like AI Engineers, computer vision specialists, and Deep Learning engineers are taking a front seat, indicating a major shift in the roles that will become more popular and lucrative in the coming years. 

The big question is – what happens immediately after the hiring freeze and layoffs are over? 

According to the U.S. Bureau of Labor Statistics data from February 2023, it takes an average of 8.3 weeks to find a job after a layoff. The good news is that this timeline is decreasing with passing months, starting at 9.1 weeks in January 2023 and 8.9 weeks in February 2023. 

• Current Hiring Patterns in the Indian Job Market

The first half of 2024 saw a positive hiring sentiment, with over 92% of recruiters expecting either a new or replacement hiring in the first six months of 2024. 

The Hiring Outlook Survey by Naukri, a leading job search portal in India, recently quoted their Chief Business Officer Pawan Goyal – 

The recent hiring patterns indicate an optimistic approach for recruiters. Although there is still a lot of anticipation, the hiring trends seem stable and balanced. 

• Is this a warning sign for data professionals in India? 

It is hard to say that things are moving downhill in the data landscape. The low employment rate may look daunting initially, but there has also been a major shift in how professionals want to get employed. 

Our analysis shows two patterns in professionals who experienced layoffs –

1. Many professionals are taking a break to cope with the burnout they experienced in their full-time jobs, especially those associated with big tech firms known for their excellent benefits and high workloads. They are simply taking a break. 
2. Others are opting to use their severance package, savings, or other income sources to take a pause and not feel pressured to start immediately.

Despite the challenges in the IT sector, recruiters still expect IT roles to dominate the hiring landscape in 2024 and beyond. This is because of the numerous IT hirings in non-It sectors.

What Should You Do To Stay Prepared?

Companies are experiencing significant transformation. Most are now welcoming AI into their businesses to integrate predictive and generative AI capabilities. 

While many companies want to achieve the “right size” in their workforce, some are innovating and leveraging AI without letting go of their workforces.

Most companies need a backup strategy or resources to support their employees during these job cuts. 

However, the good news is that AI is improving efficiency, especially in the software and IT domains. Infact, a survey reveals that AI will have the most negligible impact on jobs that require human empathy and intuition, like healthcare, skilled trades, education, and creative professions.

As a result, everyone wants to know which jobs are safe and which are at risk. However, it is essential to understand (both for businesses and professionals) that Ai will emerge as a collaborator rather than a direct replacement.

We know it is easier said than done.

What to Learn and Where?

Download our Data Science Market Research Report for free and discover more insights into what is happening in the job market, how the recession is reshaping hiring trends, and what you can do to stay ahead of the competition.