A noticeable shift is emerging in India’s technology job market, as hiring activity declines amid growing adoption of artificial intelligence across organisations.
Active tech job openings dropped 8% to 110,000 in April from 119,000 in March, according to Xpheno. This marks a sharp fall compared to April 2022, when openings stood at 256,000 during the post-pandemic surge, with tech contributing 83% of total hiring. That share has now declined to 49%, ending 3 months of recovery and extending the slowdown to 4 consecutive quarters.
“Right now, the slowdown is much higher in IT services companies, where hiring has reduced to only essential roles or newer skill sets while focusing on AI-led efficiency,” said Neeti Sharma. “On the other hand, GCCs (global capability centres) continue to hire but much more selectively, slowing down only for low-value or support roles while continuing to invest in high-skill, strategic and digital capabilities.”
Despite the slowdown, hiring has not stopped entirely. “Global clients, especially from the US and Europe, are deferring hiring decisions rather than cancelling them outright,” said Sanketh Chengappa. “The slowdown is now being driven more by internal cost control. Organisations are prioritising productivity, leveraging AI to reduce incremental hiring, and focusing on margin expansion. This is a structural reset rather than a cyclical dip.”
Segment-wise, GCC job openings fell 21% month-on-month, IT services declined 7%, consulting roles dropped 33%, and mid-junior positions decreased 25%. Hiring delays in IT services are linked to budget reviews and fewer new projects, while GCCs are facing longer selection cycles for niche roles.
According to Pareekh Jain, “Larger GCCs are slowing hiring due to AI and macro conditions, while new GCCs continue to come up.” Out of a potential 5,000 global firms, only 1,700 have set up GCCs in India so far, leaving room for future growth.
Workforce strategies are also evolving. Full-time roles, which make up 77% of openings, fell 3%, while contract roles declined 17%. Companies are increasingly opting for flexible hiring models.
Geographically, metro cities saw a 29% drop in hiring year-on-year, while tier 2 and tier 3 locations recorded 10% growth, indicating a gradual shift beyond traditional hubs like Bengaluru, Hyderabad, and Delhi NCR.
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