Whalesbook
India's AI Talent Shortage Drives Returnship Programs
India's growing tech sector faces a major AI talent shortage, with an estimated 82% of skilled professionals missing. This deficit is much larger than the global average. Demand for AI roles has soared, pushing salaries up by 200% to 400%. To cope, companies are looking for new ways to find talent. TeamLease Digital has launched its POWER (Professional Opportunity for Workforce Empowerment & Reboot) program. It aims to bring experienced professionals, particularly women on career breaks, back into AI and digital jobs. The program offers structured paths to tap into a large pool of skilled workers who aren't currently working.
Addressing the "Access Gap" for Skilled Workers
Neeti Sharma, CEO of TeamLease Digital, explains that India's problem isn't a lack of AI talent, but an "access gap." Many experienced professionals, especially women returning to work, have useful expertise and maturity that can be quickly put to work. The first group in the POWER program, the AI Career Accelerator: Returnship Edition, has already shown success, moving participants into roles where demand for AI talent still far exceeds supply. Studies show a 25-50% talent shortage in AI, Cloud, and Cybersecurity. There's also a major imbalance, with only one qualified engineer for every ten GenAI roles. This calls for effective hiring strategies that focus on workers who can be quickly deployed and deliver real business results. Structured returnship programs are therefore key for companies wanting to lead in the AI era.
Growing Female Participation in Tech
Data shows a broader trend of increasing female participation in India's tech sector. Women's involvement in STEM upskilling programs rose to 33% in 2023, and they now make up 36.2% of the country's tech workforce. This indicates a growing number of skilled women ready to return to their careers. TeamLease Digital reported in March 2025 that women's participation in India's tech contract workforce had nearly tripled between 2020 and 2024. Major global companies like IBM, Visa, and Intuit are also running their own returnship programs. This shows many companies now see hiring experienced talent on career breaks as essential for business, not just a diversity effort. For TeamLease Services Ltd., this program boosts its varied services, which are mainly general staffing (about 93% of revenue) and use a low-capital 'collect and pay' model. The company, with a market value of about ₹2,030 crore and significant cash reserves, is well-placed to support these vital talent pipelines.
Challenges and Risks for Returnships
However, the effectiveness and scalability of returnship programs face challenges. India's AI talent shortage is more than just numbers; there's a big lack of core AI engineers and model developers, with estimates suggesting only 4,000-5,000 truly specialized AI engineers are available. Returnships help re-integrate professionals but may find it hard to quickly close this gap in specialized skills. TeamLease Services Ltd. has also seen significant stock underperformance, with a one-year return of -36.10%, hinting at possible execution issues or doubts about its growth plans. The very competitive staffing industry and challenges in specialized staffing also pose risks. While large companies plan significant hiring increases, relying on these specialized programs means businesses need strong operations and good talent integration to truly fix the AI talent shortage in critical areas.
TeamLease's Strategic Outlook
TeamLease Digital's POWER program puts the company in a good spot to benefit from the growing formalization of India's staffing market and demand for specialized talent services. By addressing the critical "access gap" for AI talent, the initiative meets immediate industry needs and improves TeamLease's offer as a full HR solutions provider. As India continues its path toward becoming a global tech hub, programs that successfully bring in experienced, previously overlooked, talent will become very important. With 58% of firms planning to hire more staff in the first half of FY2026-27, driven by digital and AI roles, returnships offer a key strategy for companies and a potential growth area for flexible staffing firms.