January 2026 dawns like a chilly winter breeze for tech hiring, signalling a slowdown that has been long in the making.
India’s Tech Job Market Hits Cold Snap – 60% Slide Since 2022 Peak
January 2026 begins on a bleak note for India’s tech workforce, with active tech jobs expected to drop 24% year-on-year, marking the second-lowest demand in the last five years. From a peak of 2,62,000 openings in January 2022, active positions have slid a massive 60% to 1,03,000, according to specialist staffing firm Xpheno. Bengaluru alone accounts for 24,000 openings, down 11% from December 2024 and 37% year-on-year.
“The Indian tech sector, that once dominated the country’s overall talent action, seems to have caught a cold in late 2022 and continues to struggle with a low-to-no recovery trajectory,” Xpheno Co-founder Kamal Karanth said. The sector had surged post-COVID lockdowns from early 2021 to late 2022, peaking at over 2,60,000 active openings and capturing 85% of overall active jobs. However, when headwinds hit in late 2022, the rollback was swift. Active demand fell by 50% to 1,33,000 in January 2023, and despite short-lived recoveries, the slide has continued with a discouraging outlook.
Selective Surge – Niche Tech Skills Drive India’s Hiring Focus
Among other segments, GCCs-Tech is expected to grow 13% month-on-month, with 17,000 openings, up 7% year-on-year. Overall, tech’s share of India’s active talent demand has reached 52%, surpassing the 50% mark for the second time in over three years. Puneet Arora, Managing Partner at Biz Staffing Comrade, noted that hiring will remain selective, focusing on deep technical skills, as some large IT firms adopt a cautious approach due to macroeconomic pressures and short-term revenue forecasts.
CIEL HR MD and CEO Aditya Narayan Mishra added, “Overall headcount growth may remain measured, but demand for specialised talent continues to gain momentum. Recruitment activity is expected to be led by sectors aligned with technology-driven transformation and essential services. Overall demand will focus more on niche skills than broad-based hiring.”
The tech hiring landscape may be frosty now, but careful cultivation of specialised talent could spark the next spring of growth.
Summary
India’s tech job market faces a 24% year-on-year drop in January 2026, with openings at 1,03,000, a 60% decline since January 2022. Bengaluru jobs fell 37% year-on-year. While GCCs-Tech shows modest growth, overall hiring will focus on specialised skills rather than volume. Experts predict a cautious, skills-first approach, reflecting macroeconomic pressures and selective recruitment strategies.
