India tech hiring demand drops 24% YoY at start of 2026, report flags weak mid-senior intake
India’s technology sector has entered 2026 with weaker hiring intent, with active tech job openings down 24% year-on-year to around 1.03 lakh roles, according to staffing firm Xpheno. The report suggests demand remains close to the lowest levels seen since early 2021, with entry-level hiring comparatively steadier while mid-senior and senior roles see sharper declines.
Hiring starts 2026 on a soft note
India’s technology job market has begun 2026 with a notable slowdown in demand, as active tech job openings fell 24% year-on-year to about 1,03,000 roles, according to Xpheno’s Active Tech Jobs Outlook – India (January 2026). The data indicates the sector is still struggling to regain momentum after a subdued 2025.
The report also notes that hiring demand remained sluggish into December 2025 and showed little sign of a turnaround in early January, with openings broadly flat to slightly lower month-on-month.
Where the pressure is highest
One key pattern highlighted is a sharper decline in mid-senior and senior hiring compared with entry-level positions. This suggests companies are being cautious on higher-cost talent while still keeping some intake at the fresher end to maintain delivery pipelines, campus commitments, and long-term workforce planning.
Xpheno’s tracking also frames the current demand as far below the early-2022 peak, when openings were significantly higher, underlining how quickly the post-pandemic hiring surge has normalised.
What this could mean for candidates and firms
For jobseekers, the trend may translate into longer hiring cycles, fewer lateral jumps at higher bands, and more emphasis on niche skills. For employers, it may allow more disciplined workforce planning and a reset in compensation pressure, but it also raises the risk of capability gaps if demand returns suddenly.
What to watch in the coming weeks
- Whether BFSI, GCCs and product companies offset softness in IT services hiring.
- Any rebound in mid-senior roles tied to AI, cybersecurity, data engineering and cloud optimisation.
- Impact of global macro signals on Indian tech budgets and deal pipelines.