India tech hiring demand drops 24% year-on-year at start of 2026; GCCs show relative resilience: Xpheno
India’s tech job market began 2026 with lower hiring intent, as active technology job openings fell 24% year-on-year to around 1.03 lakh roles, according to staffing firm Xpheno’s January 2026 outlook. While IT services firms saw weaker demand, global capability centres (GCCs) emerged as a relative bright spot, reporting growth in openings compared to both the prior month and the previous year.
A slower start to 2026 for tech recruitment
India’s technology sector entered 2026 with a sharper slowdown in hiring demand, with active tech job openings falling about 24% year-on-year to roughly 103,000 roles, according to Xpheno’s January 2026 report on active tech jobs. The report described the number as among the weakest levels of demand recorded since early 2021, extending the sluggish hiring environment seen through much of 2025.
On a month-on-month basis, demand also softened marginally, signalling that companies are still cautious about new headcount additions. The downturn is being watched closely because tech services and software hiring have historically played an outsized role in organised-sector employment sentiment in India.
Where the weakness is concentrated
The report indicated that IT services firms—traditionally the largest consumers of tech talent—were under pressure, reflecting weak global tech spending and uncertainty in large markets. It also noted that hiring reductions were steeper in core tech and engineering roles compared to earlier cycles, with mid-senior and senior hiring cohorts seeing notable declines.
Geographically, demand remained heavily concentrated in India’s main tech metros, including Bengaluru, Hyderabad and Delhi-NCR, but the same cities also registered a significant year-on-year drop in openings—suggesting that the slowdown is broad-based rather than limited to smaller markets.
The bright spot: GCCs hold up better
Global capability centres (GCCs) stood out as comparatively resilient in the Xpheno analysis, showing growth in active openings compared to both the previous month and the same period a year earlier. For jobseekers, that implies the mix of opportunities may continue shifting toward product engineering, captive centres, and specialised roles even as overall openings remain lower.
For employers, the slowdown can translate into greater selectivity and a stronger focus on role criticality, skills depth, and productivity-linked hiring. For candidates, it can mean longer hiring cycles, more competition for mid-to-senior positions, and increased emphasis on niche skills and demonstrable project impact.
- Active tech openings: ~103,000 (about 24% lower YoY)
- Hiring demand remained subdued into January 2026
- IT services demand weak; GCCs relatively stronger
- Major metros still dominate demand, but saw a sharp YoY decline