India’s Tech Hiring Plummets 24% at the Dawn of 2026
India’s technology sector has entered 2026 on a somber note, with active hiring contracting by 24% compared to the same period last year.
According to the Active Tech Jobs Outlook report by staffing firm Xpheno, January 2026 recorded only 103,000 active roles, marking the second-lowest demand level in the last five years.
This sharp decline signals a prolonged “hiring winter” that has seen demand shrink by nearly 60% from the record peak of 260,000 roles witnessed in early 2022.
The slump reflects deep-seated caution among India’s IT giants as they grapple with weak global spending, particularly in the United States, and a fundamental shift toward AI-driven automation that is reshaping the traditional “headcount-led” growth model.
Hiring Experience Paradox: Freshers Rise While Seniors Sink
The data reveals a stark contrast in demand across different experience levels. Interestingly, entry-level openings for freshers (0-2 years) saw a 8% month-on-month increase, reaching approximately 14,000 roles.
However, this silver lining is overshadowed by a sharp contraction in mid-to-senior leadership positions.
- Mid-Senior Roles: Experienced the most significant monthly decline, as firms focused on “right-sizing” their expensive middle-management layers.
- Senior Executives: Hiring remained flat at historically low volumes, with companies preferring internal promotions or “job hugging” (where employees stay put due to market uncertainty) over expensive lateral hires.
Sectoral Shift: GCCs vs. IT Services
Traditionally the powerhouse of Indian recruitment, the IT Services sector reported only 41,000 active openings—an 18% year-on-year drop.
Global headwinds and the slowing pace of large-scale digital transformation deals have forced these firms to freeze or drastically reduce their intake.
In contrast, Global Capability Centres (GCCs) have emerged as a relative bright spot. Demand within GCCs rose 13% month-on-month, accounting for 17,000 active openings.
These captive units are moving away from back-office support and are instead aggressively hiring for specialized roles in GenAI, Cloud Architecture, and Cybersecurity.
The Geographic Redrawing of Tech Hubs
While Bengaluru, Hyderabad, and Delhi-NCR continue to hold two-thirds of the total tech demand, these “megacities” saw a staggering 49% year-on-year decline in active postings.
This is largely due to the high operational costs and the saturation of the talent market in these hubs.
Meanwhile, Tier-2 and Tier-3 cities recorded a 30% rise in demand.
Cities like Coimbatore, Indore, and Kochi are becoming “mini-hubs” for GCCs and specialized R&D centers, offering companies a 20-30% saving on operational costs while tapping into a stable, local talent pool.
The “Return to Office” Mandate
The report also highlights a major shift in work culture: 70% of all active tech openings now mandate a “Work from Office” (WFO) model.
Hybrid and remote roles continue to shrink as employers seek to improve productivity and foster collaborative AI development within physical office environments, further complicating the job hunt for those who transitioned to remote-first lifestyles during the pandemic.
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