Tech Salary Trends 2026: Deloitte Expects IT Wage Growth to Slow

According to a new report by Deloitte, salary in the IT services sector are likely to face downward pressure or stagnation in 2026, marking a departure from the high-growth wage cycles seen in previous years.

The AI Efficiency Dividend vs. Wage Growth

The primary driver behind this projected cooling is the rapid integration of Generative AI (GenAI) into software development and maintenance.

Deloitte’s analysis suggests that as AI tools automate routine coding, testing, and documentation tasks, the “effort-to-output” ratio is shifting.

For decades, the IT services model was built on “linear scaling”—hiring more people to increase revenue.

However, AI is decoupling headcount from growth. As productivity increases per employee, companies are recalibrating their cost structures.

Deloitte notes that firms are now prioritizing investments in AI infrastructure and high-level architecture roles over traditional entry-level and mid-level technical positions, leading to a surplus of talent in legacy skill sets.

Read Also: Infosys Joins Forces with Harness to Eliminate AI Bottlenecks

Tech Salary Trends 2026: Skill-Based Polarization

The report highlights a growing “salary divide” within the sector.

While average compensation across the industry may fall or remain flat, there is a fierce premium on specialized talent.

Roles focused on AI model tuning, data engineering, and cybersecurity continue to command high salaries.

Conversely, “commoditized” skills—such as basic application support and manual testing—are seeing a sharp decline in market value.

Deloitte suggests that the traditional 8–12% annual increments may be replaced by performance-linked bonuses or lower single-digit hikes for those who do not pivot to AI-centric workflows.

Outlook for 2026

The report concludes that 2026 will be a year of “structural realignment.”

Major IT hubs in India and Eastern Europe are expected to feel the impact most acutely as they transition from labor-intensive models to value-driven delivery.

Organizations are urged to invest in massive upskilling programs to prevent a talent mismatch that could further suppress regional wage averages.

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