Roles that mention AI in software development have grown 138 per cent between Q2 2024 and Q2 2026.
India's information technology services sector is seeing an uptick in requirements after a prolonged period of muted hiring.
In September, the sector is heading towards one of its strongest hiring demand levels in the last 18 months.
Active talent demand across the 'IT services cohort' has risen to 57,000 roles for September, the highest since February 2025, when it stood at around 80,000, according to data from Xpheno, a specialist staffing firm.
The rebound has pushed overall hiring demand in the IT sector to 117,000 roles, close to the high of 119,000 recorded in March 2026.
Key Points
- IT services hiring reaches 57,000 active roles.
- AI-linked software roles jump 138 per cent in two years.
- Nearly 60 per cent demand is for experienced professionals.
- Tech sector now accounts for 51 per cent of active talent demand.
IT Services Hiring Rebounds
"As the largest employer in the Indian IT sector, the current recovery in the services cohort is definitely the sleeping giant waking up. A sustained momentum in the months ahead will be a welcome shift," said Kamal Karanth, cofounder, Xpheno.
Xpheno's definition of the technology cohort comprises startups, software product firms, global capability centres (GCCs), Big Four firms, IT services companies and technology roles in non-tech sectors.
Within this cohort, openings in IT services are the highest, followed by GCCs.
Though the software products segment has 19,000 openings, demand is down 17 per cent month-on-month (M-o-M).
Karanth said the cohort's talent acquisition is likely driven by a release of pent-up demand after a slow phase of hiring.
A mix of global and Indian Tier-I and midcap players in the IT services cohort have collectively lifted the demand outlook for September, he said.
Senior Roles Dominate Demand
Mid-senior and senior roles account for nearly 60 per cent of the active demand, highlighting the need for experienced talent with an execution focus.
Sashi Kumar, managing director of jobs web site Indeed India, said that demand for artificial intelligence skills has sharpened.
"Roles that mention AI in software development have grown 138 per cent between Q2 2024 and Q2 2026, even as overall software development postings stayed roughly flat.
"This means within IT services, employers are hiring differently rather than simply hiring more.
"The premium is on roles where AI, Cloud and digital skills can be applied quickly to real business needs," he said.
Entry-level opportunities continue, but "the bar is rising, with employers placing greater weight on job-ready digital capability over headcount alone," said Kumar.
Talent Demand Crosses 50 per cent
Another positive from the Xpheno report is the technology sector's share in the country's employment demand.
The sector's contribution to India's total active talent demand has risen to 51 per cent, up 3 percentage points M-o-M and 2 percentage points year-on-year, crossing the 50 per cent mark for the first time in FY27.
Feature Presentation: Ashish Narsale/Rediff
