The Indian IT job market is going through a slower phase in 2026. According to India Today, active technology job openings have fallen to a 28-month low of around 93,000.
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At the same time, Deccan Herald reported a decline in entry-level hiring, showing that companies are giving preference to experienced professionals over fresh graduates and early-career employees.
Challenges Facing the IT Industry
One of the biggest challenges is the decline in hiring across IT services companies, startups, and product firms. The rise of AI tools and agents is changing the way software development work is done, reducing the need for some routine roles.
Another challenge is increased competition for jobs. India Today reported that Indian professionals returning from the US due to H-1B visa uncertainties could add pressure to the domestic job market.
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As more experienced professionals look for opportunities in India, competition for available positions may increase.
Freshers are also facing difficulties. Companies are increasingly looking for candidates with practical experience, project work, internships, and specialized skills rather than hiring large numbers of entry-level employees.
What Jobs Could Look Like in 2026-27
Hiring is expected to continue, but companies are likely to focus on specific skills rather than large-scale recruitment.
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Roles related to Artificial Intelligence (AI), Machine Learning (ML), cloud computing, cybersecurity, data analytics, and automation are expected to remain in demand.
Companies are also expected to continue hiring for Global Capability Centres (GCCs), which have become an important source of technology jobs in India.
For fresh graduates, having industry certifications, internship experience, and hands-on project work could become increasingly important in securing employment.
The overall job market may remain competitive, but opportunities are likely to be available for professionals with in-demand technical skills.
Compensation and Salary Hikes
Salary growth is expected to continue in 2026, although increases may not be uniform across all roles.
Industry surveys indicate that average salary increments in India could remain around 9%. However, technology companies are expected to take a more cautious approach compared to previous years.
Employees with skills in AI, cloud, cybersecurity, and digital transformation are likely to receive better salary increases than those in traditional technology roles. Companies are also expected to reward high performers more aggressively than average performers.
Global Capability Centres are projected to offer stronger salary growth than many traditional IT services companies.
Silver Lining
Despite slower hiring and fewer entry-level opportunities, the outlook for India’s technology sector remains positive.
The slowdown is largely affecting traditional IT roles, while demand continues to grow for skills in AI, cloud computing, cybersecurity, data engineering, and digital transformation.
Global Capability Centres (GCCs) are expanding their presence in India and remain an important source of new jobs. Companies are also willing to offer better pay for professionals with specialized and in-demand skills.
For job seekers, the market is becoming more competitive, but opportunities remain strong for those who invest in upskilling and industry-relevant experience.
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About the Author
Romesh Srivastava
Contributing Writer