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India’s IT recruitment slows as AI and global pressures weigh in
Across product companies, start-ups, global capability centres (GCCs) and non-tech organisations, active technology job openings crossed the one lakh mark.
Across product companies, start-ups, global capability centres (GCCs) and non-tech organisations, active technology job openings crossed the one lakh mark.
Hiring activity in India’s information technology (IT) sector has slowed, with companies increasingly directing resources towards artificial intelligence (AI) and grappling with global economic headwinds. The dip, estimated at 2–3 per cent, reflects both structural shifts and external pressures, including the impact of US President Donald Trump’s 50 per cent tariff on India.
According to data cited by The Economic Times, outsourcing companies reported a 10 per cent drop in overall hiring between July and August. Legacy technology jobs recorded a fall of 2–3 per cent in the current quarter, even as demand for specialised skills, AI-related positions and remote roles remained steady or saw growth.
Six major IT firms, including Tata Consultancy Services (TCS) and Infosys, hired just 3,800 employees during the quarter, marking a steep decline of nearly 72 per cent compared with the March quarter.
The downturn is also evident in available openings. By the end of August, there were only 43,000 advertised roles in technology—24 per cent lower than the same period in 2024 and down by 41 per cent compared with September 2022, according to data from staffing firm Xpheno reported by ET.
The contraction is not confined to IT service providers. Across product companies, start-ups, global capability centres (GCCs) and non-tech organisations, active technology job openings crossed the one lakh mark, but this represented a 1 per cent fall from August and a 24 per cent year-on-year decline.
Platforms tracking recruitment activity noted that overall hiring demand in the technology space has been weak for the last three months, falling by 49 per cent.
Industry watchers note that over the past two to three quarters, service providers have largely prioritised backfilling roles left vacant by attrition and sustaining already high utilisation levels, rather than pursuing fresh expansion.
The combination of tariff-related uncertainties, economic headwinds and the industry’s pivot towards AI-driven efficiencies suggests that hiring will remain subdued in the near term, even as the demand for niche skills continues to create selective opportunities.
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