India’s IT services industry is showing renewed hiring momentum after an extended period of subdued recruitment activity, with active demand for talent climbing to its strongest level in 18 months.
According to data from specialist staffing firm Xpheno, the IT services segment is expected to record 57,000 active job openings in September 2026, marking the highest level since February 2025. The increase signals a recovery in hiring appetite among technology services companies after several quarters of cautious workforce expansion.
The rebound has also lifted overall demand across India's broader technology employment market, bringing active hiring requirements close to levels seen earlier this year.
Recovery gathers pace across IT services
The latest figures indicate a notable improvement in recruitment activity among IT services firms, which remain the largest employers within India's technology ecosystem.
According to Xpheno, active demand across the IT services cohort has reached 57,000 roles, while total hiring demand across the wider technology sector stands at 117,000 openings, approaching the 119,000 roles recorded in March 2026.
Key hiring figures include:
- 57,000 active IT services openings in September 2026
- Highest level since February 2025
- 117,000 total technology sector openings
- Near the 119,000 peak recorded in March 2026
- Technology sector now accounts for 51% of India's active talent demand
Kamal Karanth, Co-founder of Xpheno, described the recovery as a significant development for the sector, noting that IT services remains the largest employer within India's technology industry.
He said the current improvement reflects a release of pent-up demand following a prolonged period of slower hiring activity.
Demand broadens across the technology ecosystem
Xpheno's technology cohort includes startups, software product companies, global capability centres (GCCs), Big Four firms, IT services companies and technology roles within non-technology industries.
Within this broader ecosystem, IT services remains the largest source of active hiring demand, followed by GCCs.
The software products segment currently accounts for approximately 19,000 openings, although demand in this category declined 17% month-on-month, highlighting differing hiring trends across technology sectors.
Karanth said a combination of global companies, Indian Tier-I firms and mid-sized IT services players has contributed to the stronger demand outlook for September.
Experienced professionals remain in focus
The recovery is being driven primarily by demand for professionals with established industry experience.
According to the Xpheno data, mid-senior and senior-level positions account for nearly 60% of active hiring demand, indicating that employers continue to prioritise execution-focused talent capable of delivering business outcomes.
The trend suggests organisations remain selective in workforce expansion, concentrating hiring efforts on specialised and experienced professionals rather than broad-based recruitment.
AI skills reshape hiring priorities
Alongside the recovery in hiring volumes, employers are increasingly seeking candidates with artificial intelligence and digital technology capabilities.
Sashi Kumar, Managing Director of Indeed India, said demand for AI-related skills has accelerated significantly over the past two years.
According to Kumar, job postings mentioning AI in software development roles increased 138% between the second quarter of 2024 and the second quarter of 2026, while overall software development hiring remained broadly stable.
The trend indicates employers are changing the type of talent they recruit rather than simply increasing headcount.
Kumar noted that organisations are placing a premium on candidates who can apply AI, cloud and digital technologies to immediate business requirements.
He added that entry-level opportunities remain available, although employers are increasingly prioritising job-ready digital capabilities and practical technology skills.
Technology sector strengthens its share of employment demand
The hiring recovery is also reflected in the technology sector's growing contribution to India's overall employment market.
According to Xpheno, technology's share of active talent demand has risen to 51%, representing an increase of three percentage points month-on-month and two percentage points year-on-year.
The figure marks the first time in FY27 that technology hiring has crossed the 50% threshold of overall active employment demand.
The development highlights the sector's continued importance to India's labour market despite recent hiring slowdowns and ongoing global economic uncertainty.
Outlook points to sustained momentum
The latest hiring data suggests India's IT services sector is entering a more active recruitment phase after an extended period of caution. Rising demand from major IT employers, continued expansion by GCCs and growing emphasis on AI-related skills are helping reshape hiring priorities across the industry.
While employers remain focused on experienced professionals and specialised digital capabilities, the return of stronger recruitment demand offers an encouraging signal for the broader technology sector. Whether the recovery evolves into a sustained hiring cycle will depend on business confidence, global technology spending and the pace at which companies continue investing in AI-driven transformation.