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

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.