India’s fast-growing digital economy is creating an urgent demand for cybersecurity professionals, but companies across the country are finding it increasingly difficult to hire people with the technical expertise required to secure modern systems.
A new study released by the Data Security Council of India and SANS Institute found that businesses are facing a serious shortage of skilled cybersecurity workers as technologies such as artificial intelligence, cloud computing, and API-driven infrastructure become more deeply integrated into daily operations.
According to the Indian Cyber Security Skilling Landscape Report 2025–26, nearly 73 per cent of enterprises and 68 per cent of service providers said there is a limited supply of qualified cybersecurity professionals in the country. The report suggests that organisations are struggling to build teams capable of handling increasingly advanced cyber risks at a time when companies are rapidly digitising services, storing more information online, and adopting AI-powered tools.
The hiring process itself is also becoming slower. Around 84 per cent of organisations surveyed said cybersecurity positions often remain vacant for one to six months before suitable candidates are found. This delay reflects a growing mismatch between industry expectations and the skills available in the job market.
Researchers noted that many applicants entering the cybersecurity workforce lack practical exposure to real-world security environments. Around 63 per cent of enterprises and 59 per cent of service providers said candidates often do not possess sufficient hands-on technical experience. Employers are no longer only looking for basic security knowledge. Companies increasingly require professionals who understand multiple areas at once, including cloud infrastructure, application security, digital identity systems, and access management technologies. Nearly 58 per cent of enterprises and 60 per cent of providers admitted they are struggling to find candidates with this type of cross-functional expertise.
The report connects this shortage to the changing structure of enterprise technology systems. Many organisations are moving away from traditional on-premise setups and shifting toward cloud-native environments, interconnected APIs, and AI-supported operations. As businesses automate more routine tasks, demand is gradually moving away from entry-level operational positions and toward specialised cybersecurity roles that require analytical thinking, threat detection capabilities, and advanced technical decision-making.
Artificial intelligence is now becoming one of the largest drivers of cybersecurity hiring demand. Around 83 per cent of organisations surveyed described AI and generative AI security skills as essential for future operations, while 78 per cent reported strong demand for AI security engineers. The findings also show that nearly 62 per cent of enterprises are already running active AI or generative AI projects, which experts say can create additional security risks if systems are not properly monitored and protected.
As companies deploy AI systems, the attack surface for cybercriminals also expands. Security teams are now expected to defend AI models, protect sensitive datasets, monitor automated systems for manipulation, and secure APIs connecting multiple digital services. Industry experts have repeatedly warned that many organisations are adopting AI tools faster than they are building security frameworks around them.
Some cybersecurity positions remain especially difficult to fill. The report found that almost half of service providers and nearly 40 per cent of enterprises are struggling to recruit security architects, professionals responsible for designing secure digital infrastructure and long-term defence strategies. Demand is also increasing for specialists in operational technology and industrial control system security, commonly known as OT/ICS security. These professionals help protect critical infrastructure such as manufacturing facilities, power systems, transportation networks, and industrial operations from cyberattacks.
At the same time, companies are facing growing retention problems. Around 70 per cent of service providers and 42 per cent of enterprises said employees are frequently leaving for competitors offering better salaries and career opportunities. Limited access to advanced training and upskilling programs is also contributing to workforce attrition across the sector.
The findings point to a larger issue facing the cybersecurity industry globally: technology is evolving faster than workforce development. Experts believe companies, educational institutions, and training organisations may need to work more closely together to create industry-focused learning pathways that prepare professionals for modern cyber threats instead of relying heavily on theoretical instruction alone.
With India continuing to expand digital public infrastructure, cloud adoption, fintech services, AI development, and connected industrial systems, cybersecurity professionals are expected to play a central role in protecting sensitive information, maintaining operational stability, and preserving trust in digital platforms.
A recent analysis of cybercrime data of last year (2025) disclosed that ransomware victims have risen rapidly by 45% in the previous year. But this is not important, as there exists something more dangerous. The passive dependence on hacked credentials as the primary entry point tactic is the main concern. Regardless of the platforms used, the accounts you are trying to protect, it is high time users start paying attention to password security.
India plans to change its financial landscape as the Reserve Bank of India (RBI) brings new security measures for all electronic payments. The new rules take effect on 1 April 2026. Every digital payment will be verified through a compulsory two-factor authentication process. The new rule aims to address the growing number of cybercrimes and phishing campaigns that have infiltrated India’s mobile wallets and UPI. Traditionally, security relied on text messages, but now, it has started adopting a versatile security model. The regulators are trying to stay ahead of threat actors and scammers.
The new directive mandates that at least one of the two authentication factors must be dynamic. The authentication has to be generated particularly for a single transaction and cannot be used twice. Fintech providers and banks can now freely choose from a variety of ways, such as hardware tokens, biometrics, and device binding. This shift highlights a departure from the traditional era, where OTPs via SMS were the main line of defence.
To make security convenient, banks will follow a risk-based approach.
Low-risk: Payments from authorized devices or standard small transactions will be quick and seamless.
High-risk: Big payments or transactions from new devices may prompt further authentication steps.
The framework with “RBI’s new digital payment security controls coming into force represent a significant recalibration of India’s authentication framework – from a prescriptive OTP-based regime to a more principle-driven, risk-based standard,” experts said.
The RBI no longer manages the particular technology used for verification. Currently, it focuses more on the security of the outcome.
The technology-neutral stance permits financial institutions to use sophisticated solutions like passkeys or facial recognition without requiring frequent regulatory notifications. The central bank will follow the principle-driven practice by boosting innovation while holding strict compliance. According to experts, “By recognising biometrics, device-binding and adaptive authentication, RBI has created interpretive flexibility for regulated entities, while retaining supervisory oversight through outcome-based compliance.”
The RBI has increased accountability standards, making banks and payment companies more accountable for maintaining safe systems.
Institutions may be obliged to reimburse users in situations when fraud results from system malfunctions or errors, which could expedite the resolution of grievances.
The goal of these regulations is to expedite the resolution of complaints pertaining to fraud.