India’s technology hiring market continues to lose momentum, with active job demand declining further in May 2026, reflecting sustained caution among employers and job seekers alike. According to the latest Active Tech Jobs Outlook by Xpheno, total active tech openings stood at 108,000, marking a 2% drop compared to April 2026.
The report highlights that the sector has entered a prolonged phase of moderation, reversing the gains seen earlier in the year. Active demand in May is now over 9% lower than the peak recorded in March 2026, underlining a broader slowdown that has persisted for multiple quarters.
Hiring sentiment remains cautious
The outlook suggests that both employers and employees are approaching the market conservatively. Companies are holding back on aggressive hiring due to global uncertainties and evolving business conditions, while candidates are becoming increasingly selective amid reduced recruiter outreach.
The report also points to external pressures such as geopolitical developments and market instability in key global regions, which continue to influence hiring strategies. Adding to this is the growing noise around artificial intelligence-led hiring narratives, contributing to a broader sense of uncertainty in the talent ecosystem.
Tech sector’s share remains subdued
The tech sector’s contribution to India’s total active job market currently stands at 47%, remaining below the 50% mark and significantly lower than its peak dominance of over 80% in previous years.
This structural shift indicates changing dynamics in India’s employment landscape, with long-term implications for talent supply, academic choices, and workforce aspirations.
Full-time roles dominate, but decline
Full-time roles continue to account for the bulk of hiring, contributing 80,000 openings (74% of total jobs). However, these roles declined 6% month-on-month, reflecting reduced long-term hiring commitments.
In contrast, contract roles remained stable, while internships and part-time roles rose 33%, albeit on a smaller base. Year-on-year, contract hiring has grown significantly by 67%, indicating a gradual shift toward flexible workforce models.
Pressure on entry-level and senior roles
Hiring declines were particularly visible at the entry and senior ends of the spectrum. Entry-level openings fell to 13,000, marking a 13% drop from April and a 19% decline year-on-year. Senior roles also saw a sharp contraction of 33% month-on-month.
Mid-senior roles continue to dominate hiring, accounting for nearly half of all openings, though they too declined by 12% compared to the previous month.
GCCs emerge as a bright spot
Global Capability Centres (GCCs) stood out as a key growth driver amid the slowdown. Hiring in this segment rose 20% month-on-month and 29% year-on-year, contributing 18,000 openings.
Meanwhile, traditional IT services firms—still the largest employers with 43,000 openings—reported flat monthly growth and a 17% year-on-year decline, indicating continued stress in the segment.
Metro dominance continues, but Tier 2 sees long-term growth
Major cities continue to dominate hiring, accounting for 65% of total demand, although their overall volumes have declined on a yearly basis.
Tier 2 and Tier 3 cities, while witnessing a 10% month-on-month dip, have nearly doubled their hiring volumes year-on-year, signaling a gradual geographic diversification of tech jobs.
Shift in work formats
Work-from-office roles remain the dominant format, making up over 70% of openings, while remote roles have sharply declined by 24% month-on-month. Hybrid roles, however, are gaining traction with a 13% monthly increase, reflecting evolving workplace preferences.
No immediate recovery in sight
The report concludes that there are no strong indicators of a near-term recovery, with hiring expected to remain steady but subdued through the current quarter.