5 Strategies to Outsmart Competitors and Hire Top Indian AI Talent Affordably

The global AI market size was USD 628.23 billion in 2024 and is expected to grow at a CAGR of 19.1% from 2024 to 2034, reaching a market size of around USD 3,680.47 billion. 

Fueling this growth is the revelation of the incredible potential of Generative AI (GenAI) to bring revolutionary shifts across industry verticals, from healthcare to entertainment and finance. To keep pace, tech giants like Baidu, Microsoft, Google, and Amazon are offering top-tier packages to hire the best talent and build their own AI engines. Other companies are not far behind, ensuring they aren’t blindsided by industry disruptions. 

Growing importance of India  

This growth frenzy has further increased the demand for AI talent, creating a significant gap in the global talent market. India exemplifies this shift better than most nations. With a population of 1.4 billion, India has long been the back office of the tech industry and a source of high-quality, affordable talent. According to NASSCOM, an estimated 5 million people are employed in India’s tech services sector. Indian tech talent has long been valued and prized globally. 

However, India’s role in the global value chain is evolving. In 2022 alone, 66 new tech innovation centers were added, bringing the total number of Global Capability Centers (GCCs) in India to 1,600. These centers, which once handled back-office functions, have now transformed into hubs for business-critical technologies like AI. 

Speaking of AI, India boasts the second-largest pool of AI talent, accounting for 16% of the global talent pool. It’s no surprise, then, that top MNCs look to hire developers from India to surge ahead. For example, Google (a part of Alphabet) started its Indian operations in 2004 with just five employees, and now employs nearly 10,000. 

Other industry giants like Amazon and Microsoft aren’t far behind. In the first quarter of 2023 alone, companies like Avis Budget Group Inc., Pratt & Whitney, and Warner Bros. Discovery Inc. established R&D centers in India, joining the ranks of Walmart Inc. and Goldman Sachs Group Inc. However, as stats show, even India seems to be falling short of the demand.  

Shortage of AI talents 

Currently, India has approximately 416,000 professionals working in data science and AI. However, according to NASSCOM estimates, there is a demand for an additional 213,000. Moreover, the demand for AI talent is expected to jump to 12,50,000 in 2027. And as basic economics teaches us, when demand outpaces supply, costs rise.  

This creates a significant disadvantage for small and medium businesses (SMBs). These businesses often face resource constraints and cannot afford the hefty salary packages that top AI talent commands—leaving them lagging behind in the AI race. But don’t despair. If you are looking at hiring Indian AI professionals, here are 5 strategies you can implement to hire top Indian tech talent affordably. 

Strategy 1: Offer competitive packages beyond salary 

While salary is a great motivator for attracting top talent, other factors can be just as effective. For instance, work-life balance is a priority for many Gen Z employees. By fostering a workplace that is fun, supportive, and offers significant growth potential, you can attract the best candidates. 

You can also offer benefits that appeal to Indian employees, such as health insurance, retirement plans, paid holidays, and periodic health checkups. Additionally, implementing a reward and recognition program that acknowledges top performers can motivate them to exceed expectations. 

By consistently offering these benefits, you can build a strong employer brand over the long term, which is crucial as employer branding is one of the top considerations for Indian employees when choosing where to work.  

Strategy 2: Partnering With an IT Outsourcing Company 

When hiring Indian AI professionals, one effective strategy is partnering with a local IT outsourcing company. This arrangement allows you to offload all concerns related to talent sourcing to the outsourcing partner. The partner handles skill assessments and employs various hiring strategies to onboard AI professionals and ensure your project gets completed. 

However, a major drawback of this approach is that you may lose control over the work being done. You can never be entirely sure who will be handling your project, and some outsourcing companies may charge exorbitant rates, potentially taking advantage of businesses unfamiliar with the process or insufficiently cautious.  

Strategy 3: Partnering With a Remote Staffing Organization 

One way to onboard top Indian tech talent without paying sky-high salaries or dealing with the hassles of recruitment, operations, and office administration is by partnering with a remote staffing organization. This cost-effective hiring strategy allows you to work with a remote workforce at a fraction of local hiring costs. 

The remote employees you hire through this method act as an extension of your in-house team. You can supervise their work regularly and scale up or down by hiring additional resources or downsizing as per business needs. For example, Remote Resource, a premier remote staffing organization, can manage AI talent recruitment for you and provide top-tier professionals. 

Strategy 4: Hiring Freelancers 

Another alternative strategy is to hire freelancers. You can often find talented freelancers at a fraction of the cost and vet their skills through ratings before hiring. However, unlike dedicated virtual employees, freelancers often juggle multiple projects simultaneously. 

As a result, they may not give your project their full attention or deliver the same quality as dedicated remote employees. Additionally, talent retention can be a challenge when working with freelancers. Many prefer short-term projects and often avoid long-term commitments, which can create issues for your business.  

Strategy 5: Hiring Remote Talents 

Another alternative could be to directly search for and hire a remote workforce. However, this can be challenging in a foreign country where your brand is mostly unknown, especially in a niche market like AI talent. But if you have a strong social media presence or solid brand traction in India, this strategy might be worth exploring.  

Final words 

The demand for Indian AI talent has skyrocketed in recent years, leading to a significant talent shortage and sky-high salary demands. This puts small and medium businesses at a disadvantage, as they struggle to attract top AI professionals. In this article, we have discussed five strategies to help SMBs overcome this challenge. 

Of all the strategies mentioned, partnering with a remote staffing organization, such as Remote Resource, seems to be the most effective. Want to learn more? Connect with us today. For more in-depth articles, keep following us.