India's technology sector commenced 2026 with a significant downturn in hiring activity, recording active tech job openings at nearly a five-year low in January. According to a report by specialist staffing firm Xpheno, active tech job demand in January 2026 saw a sharp 24% year-on-year decline, marking it as the second-lowest demand level observed in the last five years, or even six years by some accounts. The total number of active tech job openings for the month stood at approximately 103,000. This figure represents a massive 60% slide from the peak recorded in early 2022, when the sector witnessed over 260,000 active openings. The slowdown is attributed to continued caution in recruitment, particularly within traditional IT services firms, which reported stagnant demand and an 18% year-on-year drop in openings. In contrast, Global Capability Centres (GCCs) emerged as a relative bright spot, showing a 13% month-on-month and 7% year-on-year increase in tech hiring, reinforcing their role as a growth engine. The report highlights uneven trends across experience levels, with a limited improvement in entry-level hiring but continued contraction in demand for mid-senior and senior roles. Experts from Xpheno suggest that the Indian tech sector has struggled to recover since a sharp rollback in late 2022, and prospects for a strong rebound remain limited, with recovery closely tied to the health of the IT services sector and global technology spending. This prolonged slowdown signals a shift from a period of hyper-growth experienced in 2021-2022.