India’s technology hiring market is entering 2026 with little sign of a strong recovery, as weak global demand, cautious corporate spending and rapid advances in artificial intelligence continue to reshape hiring patterns.
Active tech job openings in India stood at around 1.03 lakh in January 2026. This marks a 60 per cent drop from the peak seen in early 2022 and is the second lowest level in the past five years, according to the latest Active Tech Jobs Outlook by a staffing firm.
“The Indian tech sector, that once dominated the country’s overall talent action, seems to have caught a cold in late 2022 and continues to struggle with a low to no recovery trajectory,” said Kamal Karanth, co founder of the staffing firm, commenting on the prolonged slowdown.
After a strong post pandemic rebound, when demand crossed 2.60 lakh roles in early 2022, hiring volumes fell sharply within a year due to global headwinds. As of January 2026, tech hiring was still 24 per cent lower than a year earlier.
Technology has also lost its position as the main driver of hiring in India. While it still makes up 52 per cent of active job openings, non tech sectors have led overall hiring since 2022. A recovery in IT hiring now largely depends on the health of the IT services sector, which continues to face pressure from weak global spending, especially in the United States.
One clear exception is Global Capability Centres. Hiring by these centres rose 13 per cent month on month in January and was 7 per cent higher than a year ago. “Global Capability Centres are accelerating their recruitment of tech professionals much faster than traditional IT companies,” said Puneet Arora, Managing Partner at a staffing firm. He added that hiring has shifted “from mass hiring to value driven, niche talent acquisition with the right skills.”
Entry level hiring showed early signs of stabilising, rising 8 per cent month on month to about 14,000 roles, though it remained 18 per cent lower year on year. Mid senior roles still dominate demand but are also down compared to last year.
Artificial intelligence is reshaping skill demand rather than total headcount. TeamLease Digital estimates India’s AI talent pool will nearly double to 12.5 lakh by 2027. However, it warned of a “two speed workforce shift,” with strong growth in enterprise grade AI roles and slower demand for legacy roles.
Geographically, hiring in tier two and tier three cities rose 30 per cent year on year, even as demand in major metros declined. Staffing firms expect 2026 to be a year of selective and skills focused hiring, rather than a return to earlier highs.
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