India's technology sector is undergoing a significant recalibration, with active job openings falling to a 28-month low. Data from talent intelligence platform Xpheno indicates that only 93,000 tech jobs were available at the start of June, a stark decline from 119,000 in March. This represents a 14% month-on-month drop and a 17% decrease compared to June 2025.
Structural Reset in India's Tech Job Market
The slowdown signals a structural reset in the industry, moving away from the high-volume hiring cycles that characterized the post-pandemic boom. Companies are now adopting a more cautious, demand-driven approach to workforce planning, influenced by global macroeconomic uncertainties, the increasing use of AI to automate routine tasks, and a normalization of the market after surges in 2021 and 2022.
Kamal Karanth, co-founder of Xpheno, highlighted the sector's 'hyper-elasticity' to market uncertainties driven by geopolitical and geoeconomic events. This has led to a conservative overall hiring outlook, with major IT services firms increasingly acknowledging that revenue growth is less tied to headcount additions, especially as artificial intelligence integrates into software development and operations.
Entry-Level and Senior Roles See Steep Declines
The impact is particularly pronounced at both ends of the career spectrum. Entry-level openings have plummeted 44% year-on-year, while senior-level positions are down an even steeper 67%. Leading firms like Tata Consultancy Services (TCS) and Infosys are making significantly fewer fresher offers than in previous years, reflecting a broader industry shift.
Careernet, a talent solutions firm, attributes this moderation in direct campus hiring—which remains 30-35% below historical levels—to three primary factors:
- Global macroeconomic uncertainty delaying discretionary technology spending.
- Growing use of AI to automate routine tasks.
- Industry normalization after the hiring surge of 2021 and 2022.
Demand for AI and Specialized Skills Remains Strong
Despite the overall contraction, demand for specific, future-ready skills remains exceptionally strong. Recruiters report that AI and machine learning, cloud computing, and cybersecurity are among the most sought-after domains. Employers are struggling to find qualified talent in these emerging areas, with acute shortages particularly evident in cybersecurity.
Sashi Kumar, Managing Director of Indeed India, noted a transition from expansive hiring to a more disciplined phase focused on strategic capabilities. While hiring has slowed in traditional areas like IT systems and data analytics, demand for IT infrastructure, operations, and support roles has increased 20% year-on-year on Indeed's platform. This indicates a shift towards a skills-led tech labor market, driven by the need to deploy AI, modernize infrastructure, and deliver measurable business impact.
GCCs Show Resilience, H-1B Uncertainty Plays a Role
The impact of the slowdown is not uniform across all industry segments. While demand from IT services companies dropped 16% month-on-month, Global Capability Centers (GCCs) have shown relative resilience. GCCs, accounting for 18% of active demand, saw openings decline 6% month-on-month but still recorded a 31% increase compared to a year earlier.
Adding to the complexities, uncertainty surrounding the H-1B visa program in the United States is also influencing hiring plans in India. Kamal Karanth believes the fast-changing dynamics around H-1B are causing enterprises to pull jobs from the market, as the program is crucial for market access and project delivery.
Future Outlook: Targeted Recovery, Not Mass Recruitment
While recruiters do not expect the subdued hiring activity to last indefinitely, a return to the mass recruitment cycles that once characterized India's IT industry appears unlikely. Neelabh Shukla, Chief Business Officer at Careernet, anticipates pent-up demand for entry-level professionals, especially as concerns around AI spending and returns on investment evolve. A targeted recovery in hiring could be seen in the second half of the year, but the emphasis will remain on securing specialized talent capable of delivering immediate business impact through just-in-time workforce planning and AI-driven productivity gains.