India’s technology hiring market has stepped into 2026 with restrained momentum, as recruitment demand continues to fall short of earlier peaks and any meaningful rebound remains uncertain. According to Xpheno’s latest outlook, active job openings are still well below historic highs, underscoring the lingering impact of the slowdown that first surfaced in late 2022. While headline numbers point to stress, a closer reading of the data suggests the market is not frozen—rather, it is recalibrating, with demand becoming more targeted and uneven.
Kamal Karanth of Xpheno captures the sentiment clearly, saying the sector “caught a cold” in 2022 and has struggled to regain momentum. His assessment reflects a hiring ecosystem that has yet to fully recover its confidence. The report highlights divergent patterns across IT services firms, global capability centres (GCCs), and various experience levels. Certain specialised roles and skills continue to see movement, while broad-based hiring remains sluggish, leaving many professionals navigating a more competitive and cautious job market.
Instead of a uniform slowdown, the data reveals pockets of resilience. Hiring activity persists in niche technology areas and specific experience bands, suggesting that companies are prioritising critical capabilities over volume-driven recruitment. This selective approach points to a strategic shift, where organisations are balancing cost discipline with the need to sustain innovation and delivery.
Geographic and workplace trends are also evolving. Traditional megacities, long the centre of India’s tech workforce, are gradually losing share as tier 2 and tier 3 cities gain visibility in hiring data. This shift reflects both cost considerations and the growing availability of skilled talent beyond major urban hubs. At the same time, the report notes a decline in fully remote roles. Work-from-office continues to dominate, indicating that employers prefer controlled, location-based hiring models amid uncertainty.
Overall, the outlook for 2026 appears cautious rather than pessimistic. Growth expectations are muted, and widespread hiring surges seem unlikely in the near term. However, the continued presence of demand in specific roles, locations, and skill sets suggests that opportunities still exist beneath the surface. For job seekers and employers alike, the year ahead may be less about rapid expansion and more about precision—understanding where hiring is quietly holding firm and aligning strategies accordingly.
