India's IT Sector Sees Revenue Growth Amid Stagnant Hiring
Jobless growth in IT: Revenue grows, headcount stagnates
Image: The Economic Times
India's technology sector is experiencing revenue growth while headcount remains stable, with the six largest IT firms increasing revenue from $95.9 billion in FY23 to $103.1 billion in FY26. Job openings have significantly declined, reflecting a shift towards automation and selective hiring.
- 01The six largest IT firms in India have increased their revenue from $95.9 billion in FY23 to $103.1 billion in FY26, while maintaining a headcount of approximately 1.9 million.
- 02Active technology job openings fell to about 93,000 in June 2026, the lowest in over two years, with IT services openings dropping 31%.
- 03Entry-level job openings nearly halved from 18,000 to 10,000, indicating a shift in hiring practices.
- 04Companies are adopting a just-in-time hiring model, focusing on automation and productivity gains rather than large hiring pipelines.
- 05Revenue per employee for major firms increased from $49,400 in FY23 to $54,600 in FY26, reflecting enhanced productivity.
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India's technology sector is witnessing a paradoxical trend where revenue continues to grow while headcount remains stagnant. The six largest IT services firms have collectively increased their revenue from $95.9 billion in FY23 to $103.1 billion in FY26, yet their workforce holds steady at about 1.9 million employees. Job openings in the tech sector have significantly decreased, with active openings dropping to 93,000 in June 2026, the lowest level in over two years. This includes a 31% decline in IT services job openings and a near halving of entry-level positions. Industry experts attribute this to a shift towards automation and a selective hiring approach, moving away from traditional hiring models. Companies are now focusing on immediate needs rather than anticipating future growth, which reflects a broader trend of increasing productivity. For instance, revenue per employee has risen from $49,400 to $54,600 over the same period, indicating that firms are doing more with fewer resources.
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The stagnation in hiring despite revenue growth could lead to reduced job opportunities in the IT sector, affecting job seekers and the overall employment landscape.
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