AI, cloud, and cybersecurity driving IT jobs demand, says foundit report

The hiring landscape in India’s information technology (IT) sector is shifting from volume-led recruitment to a value-led hiring cycle, with AI/ML, cloud, and cybersecurity now driving approximately 65% of all tech hiring demand, according to the latest foundit IT Trends report by jobs and talent platform foundit.

The sector is expected to expand by 6% year-on-year in 2026, with Global Capability Centres (GCCs) likely to create around 132,000 new jobs. Skill-based hiring is projected to surpass 70% adoption, while Tier II cities are anticipated to account for close to 40% of additional hiring activity.

India’s IT - software & services hiring grew 1% month-on-month and 3% year-on-year, signalling a market prioritising precision over volume.

"AI-first roles now account for over 30% of new tech demand, 71% of employers are prioritising skills over degrees, and gig tech hiring is set to grow 24%. Companies are no longer hiring to fill seats; they’re hiring to build competitive advantage. The rise of Tier II hubs and GCC dominance reinforces that this is a structural, not cyclical, shift," said Tarun Sharma, CPTO, foundit.

According to the report, while the headline growth of 3% YoY appears moderate, the underlying composition of hiring has shifted significantly, with demand concentrated in high-value, future-ready roles rather than broad-based volume hiring.

Over 60% of IT hiring demand is now concentrated across AI, data, and cloud-driven roles, reinforcing the industry’s pivot toward specialised, high-impact talent, the report says.

AI/ML engineers lead both in share (13%) and growth (28%), followed by data scientists (24% YoY growth) and DevOps engineers (19%), underlining the market’s appetite for talent that can build, deploy, and scale intelligent systems.

Generative AI / LLMs (26% YoY) and AI/ML (22% YoY) are the fastest-growing skill areas, while legacy functions such as QA/Test Automation (-2%) and IT Support/Helpdesk (-3%) face declining demand amid rising automation.

Skills with low automation risk and strong growth, such as AI/ML, cybersecurity, cloud, and generative AI, are commanding premium compensation and hiring priority, while roles vulnerable to AI-led automation are seeing both demand and salary contraction.

Delhi-NCR has emerged as the fastest-growing major IT hub with 28% YoY growth, driven by GCC expansion and startup activity, while Chennai (-5%), Mumbai (-6%), and Kolkata (-24%) have seen notable declines.

Tier II cities are fast becoming execution centres for India’s IT ecosystem, contributing nearly 40% of incremental hiring.

GCCs continue to expand their footprint in India, with their share of IT hiring rising from 41% in 2025 to 44% in 2026. Unlike traditional IT services hiring, GCC recruitment is increasingly focused on global product ownership, deep specialisation, and mid-to-senior talent.

IT sector GCCs alone account for 35% of all GCCs in India, contributing 42% of GCC-linked jobs and growing at 14% YoY, making them a defining force in the country’s tech hiring trajectory.