The Collapse from Peak: Understanding the Historic Decline

From Boom to Bust: The 260,000-Role Peak

In early 2022, India’s tech hiring reached all-time highs, with more than 260,000 active job openings. This surge was primarily fueled by the global shift to remote work and an accelerated digital transformation across industries. The tech sector became a pivotal contributor to India’s overall job market, embodying the optimism of a post-pandemic world. However, the current hiring levels are a stark contrast, sitting 60% below this peak.

The Contraction Timeline

The sharp rollback in tech hiring began in late 2022, marking a significant shift in patterns. Despite the optimism of a rapid recovery, the tech sector has not seen a meaningful rebound in the following years. January 2026 highlighted this ongoing challenge, with only 103,000 active tech job openings—down from 136,000 the previous January and just slightly above the 102,000 recorded in January 2024.

Sector Dynamics: IT Services Under Pressure, GCCs Rising

IT Services Sector Stagnation

Traditional IT services firms are grappling with stagnant demand and limited visibility on large deals. Prolonged uncertainty has led companies to focus on automation and productivity investments rather than expanding their workforce. Core technology and engineering roles, which comprise 58% of the total active demand, have seen a 37% decline year-on-year, reflecting these strategic shifts. As one industry expert noted, “The prolonged slowdown shows continued uncertainty in the services sector, limited visibility on large deals, and a higher focus on automation and productivity.”

Global Capability Centers: A Bright Spot

Amid the broader contraction, Global Capability Centers (GCCs) offer a glimmer of hope. These centers, established by major multinational technology firms, continue to expand their India operations despite the slowdown. As a result, GCC hiring remains resilient, with approximately 17,000 active openings, accounting for 16% of total tech demand. Notably, GCC hiring increased by 13% from December to January and grew 7% year-on-year. “While GCCs continue to add roles, overall tech hiring remained under pressure at the start of 2026,” experts observed.

Tech Sector’s Shifting Market Share

The technology sector has lost its position as the dominant job contributor. Non-tech sectors now occupy a larger share of overall active job openings, although tech roles have recovered to represent 52% of total job openings as of January 2026. This marks only the second time in three years that the tech sector has crossed the 50% contribution mark.

Job Category Breakdown: Weakness Across All Levels

Entry-Level and Mid-Career Openings Decline

Hiring for fresh graduates and mid-career professionals has taken a significant hit this year. Entry-level roles show steeper declines than mid-senior positions, with openings down 18% year-on-year. Meanwhile, mid-senior roles declined by 12%, and senior-level openings fell by 22%. Opportunities for career progression and new entrants remain limited, highlighting the broader challenges within the sector.

Full-Time vs. Contract and Internship Roles

Full-time permanent positions remain the primary hiring vehicle, although their numbers are dwindling. Employers have increasingly favored flexible hiring arrangements, with contract, internship, and part-time opportunities being severely limited. Currently, there are approximately 79,000 full-time roles, marking a 5% decline from December and a 24% year-on-year drop.

What’s Driving the Slowdown: Root Causes and Constraints

External Market Factors

Global technology spending patterns have a significant impact on Indian tech hiring. The health of the US market and international IT services demand is critical. Without clear visibility on large deals, hiring confidence remains constrained. As one industry analyst put it, “Recovery prospects remain limited, with meaningful rebound closely tied to the health of the IT services sector and global technology spending, particularly in key markets such as the United States.”

Industry Response: Automation and Productivity Focus

In response to these challenges, companies are prioritizing automation investments over headcount expansion. There has been a noticeable shift toward productivity-focused initiatives, reflecting structural changes in how tech companies approach workforce planning.