Archive · 26 Jan 2026
AI Skills Drive IT Salaries and Mega Deals
In the IT world, people with special skills in artificial intelligence (AI) are getting much higher salaries than those in regular jobs.
Leaders with AI skills can earn 30-35% more, while beginners get about 8-10% more.
Some new jobs, like LLM & Gen AI Engineers, pay over 40% more than usual jobs.
Big cities pay more for these skills, but smaller cities pay less.
Companies are also changing how they pay people, focusing more on skills and role complexity.
Those without AI skills might find it harder to keep their jobs, as companies are letting go of employees who can't adapt to the AI age.
Infosys, Tech Mahindra, and TCS are some of the big companies making these changes.
Additionally, major IT companies are winning big contracts to help other companies use AI, but this also means they have to spend more money upfront, which can lower their profits for a while.
Employees with AI skills command 20–40% higher salaries than those in traditional IT roles, with leaders enjoying a 30–35% premium and entry-level talent receiving 8–10%.
New roles like LLM & Gen AI Engineers, Platform Engineers, and Risk Leads pay over 40% more than conventional roles, with senior professionals in AI and Cybersecurity earning ₹45–48 LPA in metro cities.
Companies like Infosys, TCS, Cognizant, and HCLTech are winning mega deals focused on AI transformation, with Infosys securing a $1.6 billion contract with the NHS and Cognizant clinching a $1 billion deal with Novartis.
The surge in mega deals follows a lull in 2024 and comes amid uncertainty over US tariffs and geopolitical tensions, with companies expecting a ramp-up in large automation deals and AI revenue growth.
Analysts flag concerns about profitability and margins, as IT vendors have to invest in talent, infrastructure, and IT hardware at the beginning of such projects, inflating one-time costs and reducing margins.
- Who
- IT professionals with AI skills, major IT companies like Infosys, TCS, Cognizant, and HCLTech
- What
- AI skills are driving higher salaries and mega deals in the IT sector, with companies focusing on AI transformation and consolidation deals
- When
- The trends are observed in the current job market, with projections for FY27 and recent mega deals in Q4
- Where
- The trends are particularly notable in India's Global Capability Centres (GCCs), product firms, and global consulting setups, with significant location-based salary differences
- Why
- The demand for AI skills is rising sharply, and companies are consolidating vendors and committing to multi-year AI transformation programs to reduce long-term software services costs
- Salary Premium for AI Skills
- 20–40% higher than traditional roles
- Premium for Leaders with AI Skills
- 30–35%
- Premium for Entry-Level AI Talent
- 8–10%
- Highest Paying AI Roles
- LLM & Gen AI Engineers, Platform Engineers, Risk Leads
- Salary for Senior Generative AI Roles (FY27)
- ₹33.5 LPA
- Salary for Senior Generative AI Roles (FY25)
- ₹28 LPA
- Salary in Metro Cities for AI and Cybersecurity
- ₹45–48 LPA
- Salary in Tier-1 Cities for AI and Cybersecurity
- 20–30% lower than metros
- Salary in Tier-2 Cities for AI and Cybersecurity
- 30–40% lower than metros
- Infosys Compensation Framework (2025)
- ₹10–21 LPA based on skillsets and role complexity
- TCS Associates with AI Skills (Q4)
- 2.17 lakh
- TCS Mega Deal (Q4)
- North American financial institution
- Cognizant Mega Deal (Q4)
- $1 billion from Novartis
- Infosys Mega Deal (Q4)
- $1.6 billion with NHS
- HCLTech Advanced AI Revenue (Q4)
- $146 million, up 19.9% sequentially
- TCS Annualised AI Revenue
- $1.8 billion
- TCS Gen AI Growth (Q4)
- 17.3% quarterly growth in constant currency
Sources
New Skills, New Stakes: AI reshapes IT salaries and job security
BFSI growth drove momentum for Indian IT in Q3FY26
Indian IT’s mega deals spike on AI push, but there’s not much to celebrate yet
AI to contribute approx $607 billion to India by 2035 across agri, health, energy, education and manufacturing: Report
How Budget 2026 can fix India’s Safe Harbour rules that missed the mark
