India’s tech hiring slips to near five-year low as 2026 begins: Report

India’s technology sector has entered 2026 with one of its weakest hiring outlooks in recent years, as active demand for tech talent continues to remain subdued, according to the latest Active Tech Jobs Outlook – India report by staffing firm Xpheno.

The report estimates that January 2026 will see around 103,000 active tech job openings, marking a 1% decline from December 2025 and a sharp 24% drop compared to January last year. Overall, active tech hiring has fallen nearly 60% from its peak in early 2022, making January 2026 the second-lowest demand level recorded in the past five years.

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Xpheno noted that the tech sector, which once dominated India’s overall hiring landscape, has struggled to recover since a sharp rollback in late 2022. While tech roles now account for 52% of total active job openings, crossing the 50% mark only for the second time in more than three years, the volume of hiring remains significantly below historical levels.

Full-time roles continue to dominate demand, accounting for nearly three-quarters of all active openings, even as their overall volume declined month-on-month. Entry-level hiring showed limited improvement, with openings for professionals with up to two years of experience rising 8%, while mid-senior and senior roles saw continued contraction.

Among employer cohorts, IT services firms, traditionally the largest consumers of tech talent, reported stagnant demand at about 41,000 openings, down 18% year-on-year. In contrast, global capability centres (GCCs) emerged as a relative bright spot, posting a 13% month-on-month increase and a 7% rise over last year, the report said.

Geographically, hiring activity remains concentrated in major metros, though demand across megacities has fallen nearly 50% compared to a year ago. Tier-2 and Tier-3 cities, meanwhile, recorded a 30% year-on-year rise in tech job openings, reflecting a gradual shift in hiring patterns.

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Xpheno cautioned that prospects for a sharp rebound remain limited, with a meaningful recovery in tech hiring closely tied to the health of the IT services sector and global technology spending, particularly in key markets such as the United States.