Demand for talent returns in India's IT services sector after 3 months

Active tech job openings in India rose 14 per cent month-on-month in July, marking the first upward movement after three months of sustained declines, Xpheno said

What used to be a predictable talent absorption sector, India's IT services sector is becoming highly unpredictable. After hitting one of its lowest hiring months in June, the current month is seeing a 14 per cent month-on-month increase in active tech job openings, said a report.

 

The Indian tech sector's active talent demand outlook for July 2026 is set to match the levels seen in February 2026. July's demand outlook, rising by 14 per cent compared to the previous month, makes it the first month of upward movement after a quarter of sustained monthly drops, said Xpheno's Active Tech Jobs Outlook.

   

June was also hit hard due to migrant talent-related developments in the US.

 

"The Indian tech sector's active talent demand remains highly elastic and nearly unpredictable in short-term trends of loss and recovery. July's demand outlook, rising by 14 per cent compared to the previous month, makes it the first month of upward movement after a quarter of sustained monthly drops. July is set to record the biggest MoM recovery seen over the last 15 months," said Kamal Karanth, co-founder, Xpheno, a specialist staffing firm.

 

Karanth further said that the YoY drop of 8 per cent in demand is also moderate compared to the levels seen during the last quarter. "The active tech demand outlook for July 2026 is a significant 11 per cent lower than the high volume last recorded in March 2026. If current market conditions remain stable and supportive of the positive recovery, the new quarter opening July 2026 could be a welcome quarter for the sector and its talent alike," he added.

 

The volume of active openings in the sector has remained sluggish over the last five quarters.

 

The tech sector's current contribution to India's total active talent demand has moved up to 49 per cent, continuing below the 50 per cent mark for the fourth month in a row.

 

Meanwhile, active tech talent demand from the GCC cohort, at 18,000, accounts for 17 per cent of total active demand and has grown 6 per cent compared to the previous month. The overall movement in GCC demand volume has seen a significant 29 per cent YoY rise in active tech demand from the cohort.