India’s tech hiring has entered 2026 at one of its weakest levels in recent years, with demand for technology roles continuing to soften. The trend was highlighted in India through the Active Tech Jobs Outlook – India report released by staffing firm Xpheno, as companies keep recruitment cautious amid muted recovery signals.
What changed in India’s tech hiring
The report estimates around 103,000 active technology job openings in January 2026. This reflects a 1% decline from December 2025. It also marks a 24% drop compared to January 2025.
Overall, India’s tech hiring has fallen close to 60% from its peak in early 2022. January 2026 now ranks as the second-lowest demand level recorded in the past five years.
Context behind India’s tech hiring slowdown
According to Xpheno, the sector has struggled to regain momentum since a sharp pullback in late 2022. Technology roles still account for 52% of all active job openings. However, this share crossed the 50% mark only for the second time in more than three years.
Despite this proportion, hiring volumes remain far below earlier cycles. Full-time positions continue to dominate demand, making up nearly three-quarters of active openings, even as overall numbers declined month-on-month.
Impact on roles, firms, and cities
The slowdown in India’s tech hiring has uneven effects across experience levels. Openings for professionals with up to two years of experience rose 8%. In contrast, demand for mid-senior and senior roles continued to contract.
IT services firms reported flat demand at about 41,000 openings. This figure reflects an 18% year-on-year decline. Meanwhile, global capability centres offered some relief, posting a 13% month-on-month increase and a 7% rise compared to last year.
Geographically, megacities still dominate hiring. Yet demand across major metros fell nearly 50% year-on-year. At the same time, Tier-2 and Tier-3 cities recorded a 30% annual increase, indicating a gradual shift in location preferences.
Supporting data and outlook signals
Xpheno noted that recovery prospects remain limited. A rebound in India’s tech hiring remains closely linked to the health of the IT services sector. Global technology spending trends, especially in the United States, continue to influence hiring decisions.
The report underscores that hiring conditions remain constrained as 2026 begins.
