India's tech hiring slows sharply as job openings fall to near five-year lows

India’s technology job market has entered 2026 quietly. For a long time, tech was the one sector that almost always promised work, growth, and steady hiring. That sense of assurance is no longer there.

Companies are moving carefully, and job creation has slowed across the board.This change has been building for months. Through much of 2025, hiring lost pace, and by the time the new year arrived, there was little sign of improvement. What many hoped was a short pause now looks more like a period of adjustment.

Hiring numbers tell the story

A recent report by staffing firm Xpheno shows how sharply demand has fallen. Active technology job openings dropped 24% compared to last year, falling to about 103,000 roles in January 2026.

This is one of the weakest hiring phases the sector has seen since early 2021. At its peak in early 2022, tech had more than 260,000 open positions. Today, demand is almost 60% lower.

The slowdown carried into the new year

The weakness did not end with 2025. Hiring stayed soft through December and dipped another 1% as January began. For many professionals, this matches their own experience. Interviews take longer, decisions are delayed, and some roles never move beyond early discussions.

A sharp shift from the boom years

Not long ago, the picture was very different. After the pandemic, tech companies hired aggressively to meet rising global demand for digital platforms, cloud services, and online tools. Skilled workers were hard to find, and offers came quickly.That phase has faded. As companies in the US and Europe reduce technology spending, Indian IT firms are also tightening their belts. Hiring plans are being trimmed, and teams are being asked to do more with fewer people.

Fewer jobs, tighter filters

Another clear change is how companies are hiring. Large-scale recruitment has given way to selective hiring. Most openings now are for specialised roles in areas such as artificial intelligence, data systems, cybersecurity, and cloud infrastructure. These jobs exist, but they are limited in number.

Jobseekers face a tougher market

For jobseekers, the impact is clear. Fresh graduates face cautious campus placements, while experienced professionals find it harder to switch roles.

Many candidates wait longer for feedback, and competition for open roles has increased.

Why the tech slowdown matters

The technology sector has been a major source of white-collar jobs in India for years. As hiring slows, it exposes how much the job market depends on tech alone. Other sectors will need to grow faster to fill this gap.What lies aheadThe current slowdown does not mean tech has lost its importance. Digital work remains central to modern businesses. What has changed is the speed of hiring. Growth is slower and more careful.