
India's IT services sector experienced a significant 14% month-on-month increase in active tech job openings in July 2026, marking the first upward movement after three months of sustained declines, according to Xpheno's Active Tech Jobs Outlook. This recovery brings the sector's talent demand outlook to levels last seen in February 2026, representing the biggest monthly recovery seen over the last 15 months. The Indian tech sector, which was previously a predictable talent absorption sector, is now characterized as highly unpredictable in short-term trends.
June 2026 was particularly challenging due to migrant talent-related developments in the US, which significantly impacted hiring activity across the sector. As reported by Xpheno, the current recovery represents a significant shift from the previous quarter's sustained monthly drops. Kamal Karanth, co-founder of Xpheno, noted that the 8% year-on-year drop in demand is moderate compared to the levels seen during the last quarter. The active tech demand outlook for July 2026 remains 11% lower than the high volume last recorded in March 2026.
The tech sector's current contribution to India's total active talent demand has moved up to 49%, continuing below the 50% mark for the fourth consecutive month, according to Xpheno's data. Meanwhile, active tech talent demand from the GCC cohort, at 18,000, accounts for 17% of total active demand and has grown 6% compared to the previous month. The overall movement in GCC demand volume has seen a significant 29% year-on-year rise in active tech demand from this cohort.
Karanth from Xpheno emphasized that the active tech demand outlook for July 2026 represents a significant recovery, stating that 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. The volume of active openings in the sector has remained sluggish over the last five quarters, making this recovery particularly noteworthy for the Indian IT services industry.