India's IT software and services industry, long considered a powerhouse for employment, is experiencing a period of relative stabilization, while hiring levels remain below their previous peak. Data from the Indian job portal, Naukri, reveal that while the industry continues to add jobs at a steady pace, the level of monthly hiring has slowed down significantly since the highs of the first half of 2022. As shown by our chart, after a robust hiring spree in 2022, where employees hired monthly in India's IT sector frequently approached or surpassed 5,000, the trend has since settled into a more conservative range. The 12-month moving average for January 2026 stands at 3,437 hires, very close to the 3,441 recorded in January 2025.
According to industry analysts, several factors combined are influencing current recruitment strategies, including global economic uncertainty, automation and a trend toward upgrading workforce skills rather than rapid expansions. Overall, companies tend to adopt a more cautious approach, focusing on strategic hires and niche skill sets. Despite a slower recruitment pace than four years ago, the Indian IT sector remains a critical driver of employment in the country, adapting to new challenges while continuing to support India's reputation as a global tech hub.
