India's major IT companies are signaling a shift in their recruitment strategies, moving away from widespread hiring freezes implemented in 2024 and embracing targeted recruitment for niche skills. This change reflects the industry's adaptation to technological disruptions, particularly the rise of artificial intelligence (AI), and the increasing prominence of global capability centers (GCCs).
In 2025, the top five Indian IT firms collectively added 2,505 employees, a modest increase compared to the net reduction of 2,500 employees in 2024. This indicates a move towards selective, skills-based hiring rather than mass recruitment. The $283 billion sector is experiencing a recalibration, with companies focusing on enhancing productivity and AI-driven transformations.
The demand for specific skill sets is rising, especially in areas like AI, machine learning, cloud computing, cybersecurity, data analytics, Python, cloud technologies, DevOps, and platform engineering. Roles in AI, data engineering, cloud modernization, and cybersecurity have seen substantial growth, increasing by nearly 45 percent. Simultaneously, the need for legacy technology skills is declining, accounting for less than 10 percent of the total demand.
Several factors are driving this shift. The external environment remains volatile, and projects now have shorter cycles. Companies are prioritizing agility, shareholder value, and alignment with financial estimates, leading them to favor hiring for specific skills over large-scale recruitment. As AI transitions from the pilot phase to mainstream adoption, organizations are prioritizing AI-skilled talent over general tech specialists.
Global Capability Centers (GCCs) are playing an increasingly significant role in the Indian IT landscape. In 2025, GCCs accounted for approximately 27 percent of total IT job demand, a sharp increase from around 15 percent in 2024. These centers are expanding their operations in India to support global technology, engineering, and digital functions, further fueling the demand for niche skills.
The shift in hiring strategies has implications for different levels of IT professionals. Mid-career professionals with four to ten years of experience are in high demand, filling 65 percent of roles in 2025. Entry-level hiring, however, has dropped as firms seek deployment-ready talent. Nevertheless, early signs of stabilization are emerging, with entry-level tech openings rising 8 percent month-on-month in January 2026. Campus intake has also improved as firms restart structured early-career programs.
Looking ahead, the Indian IT sector is poised for a measured hiring recovery in 2026, driven by niche digital skills. Overall tech hiring across permanent, temporary, and contractual roles is expected to increase by 12 to 15 percent, creating approximately 125,000 new jobs. This growth will be driven by sectors like BFSI, healthcare, manufacturing, and logistics. Industry leaders expect India IT hiring in 2026 to recover gradually, with a focus on value-driven, niche talent acquisition.
