India tech hiring demand falls 24% year-on-year at start of 2026, says Xpheno report
India’s technology sector began 2026 with weaker hiring intent, as active tech job openings fell sharply compared with the previous year, according to a January 2026 report by staffing firm Xpheno. The report points to continuing sluggishness after a muted 2025, with sharper declines in mid-senior and senior hiring even as some entry-level roles show resilience.
What the data shows
India’s technology job market entered 2026 with a notable drop in demand, with active tech job openings down 24% compared with the same period a year earlier, according to Xpheno’s Active Tech Jobs Outlook – India for January 2026. The report estimates active openings at around 103,000 roles, marking one of the weakest demand points since January 2021.
The report also suggests momentum remained soft through December 2025 and showed little early sign of a turnaround, with demand slipping marginally on a month-on-month basis. The broader hiring slowdown follows a period where companies across IT services, product firms and global capability centres have been recalibrating headcount plans.
Which roles are under pressure
The slowdown appears more pronounced for mid-senior and senior positions, reflecting tighter budgets and delayed decision-making for experienced lateral hires. At the same time, the report notes that some entry-level hiring has seen comparatively better support, suggesting firms may still be building cost-efficient pipelines even while trimming higher-cost layers.
Hiring intent in tech is closely tied to global demand cycles, deal pipelines, venture funding, and enterprise IT spending. When revenue visibility weakens, companies often postpone senior hiring and focus on internal redeployment, reskilling and automation-driven productivity improvements.
What to watch in the coming months
Recruiters and candidates will watch for signals from quarterly earnings commentary, deal wins, and macro indicators that influence IT budgets. A sustained rebound would likely show up first in hiring for revenue-linked functions, niche digital roles, and project-based requirements before broad-based lateral hiring resumes.
In the near term, the market may remain selective: demand is expected to concentrate around high-impact skills, while generalist hiring stays cautious until spending confidence improves.