India’s tech hiring demand drops sharply at start of 2026, survey finds
India’s technology sector has begun 2026 with weaker hiring intent, as active tech job openings fell year-on-year, according to a report by staffing firm Xpheno. Demand remains concentrated in major hubs like Bengaluru, Hyderabad and Delhi-NCR, but the report suggests the market is still far below its early-2022 peak, with mid-senior and senior roles under pressure.
Tech job openings fall at the beginning of 2026
India’s technology sector has started 2026 with a marked slowdown in hiring appetite, with active tech job openings falling 24% from a year earlier to around 1.03 lakh roles, according to staffing firm Xpheno’s Active Tech Jobs Outlook – India (January 2026). The report also indicated hiring demand slipped about 1% month-on-month, suggesting a soft start to the new year.
The contraction follows a period of sluggish hiring through much of 2025, with the report arguing that the sector’s contribution to overall job creation has weakened compared with the boom period seen earlier in the decade.
Where demand is still concentrated
Despite the slowdown, the report said hiring demand remains concentrated in large metro hubs—especially Bengaluru, Hyderabad and Delhi-NCR. However, the combined demand in these major centres also showed a steep year-on-year decline, reflecting broad-based caution rather than a shift to smaller cities at scale.
Functionally, core technology and engineering roles still made up the biggest share of demand. Yet the outlook suggested these roles were among the steepest decliners compared with the previous year, pointing to a reset in new project starts and replacement hiring.
IT services vs GCCs: uneven signals
The report highlighted that IT services firms—historically the largest consumers of tech talent—were still seeing a significant year-on-year drop in openings, which the analysis linked to weak global tech spending and uncertainty in key client markets. In contrast, global capability centres (GCCs) were described as a relative bright spot, with hiring demand showing a month-on-month increase.
How jobseekers can interpret the trend
- Entry-level opportunities may not fall as sharply as experienced hiring, depending on firm strategy and campus pipelines.
- Mid-senior and senior roles can be more exposed when companies pause expansion and focus on utilisation.
- GCC-linked roles may remain comparatively resilient where multinationals keep investing in India-based product, engineering and analytics teams.
Overall, the outlook points to a cautious first quarter for technology hiring, with demand still well below the peak levels seen in early 2022. Recruiters and candidates are likely to see longer timelines for closure and a stronger emphasis on niche skills, cost efficiency and immediate productivity.