`India’s tech hiring outlook for H2FY26 won’t be promising’

India’s tech hiring outlook for the second half of FY’26 seems “not so promising’’ with new signs of clear uncertainties emerging on the ground (including ‘No Kings’ protest) and the existing government shutdown which could hamper economic growth and create more uncertainty, in the sector’s largest customer market, ie; America, say industry observers.

The newer protests are happening even as the real impact of tariffs are expected to hit the market hard in the coming quarters. When overall economic conditions are not promising with a potential rise in debts, inflation, and negative consumer sentiments amidst trade tensions and geopolitical issues. All these are likely to lead to further cuts in customer budgets and that will eventually impact jobs in India, they cautioned.

“The U.S. administration has opened up a bundle of uncertainties for citizens, entrepreneurs, and Indian tech providers. Uncertainties are only increasing month after month. Now, with `No Kings’ protests, a clear and undoubtful uncertainty has emerged on the ground with over seven million citizens trying to push back Mr. Trump’s reforms, including Tariffs,’’ observed B.S. Murthy, CEO, Leadership Capital, a CXO advisory firm.

This citizen anger may lead to newer disruptions, all these may adversely impact end-customer sentiments and economic growth in the U.S and would subsequently impact IT budget of enterprises and therefore tech jobs in India, according to Mr. Murthy.

Avinash Vashistha, Global Chairman & CEO and also formerly Chairman & MD of Accenture India told The Hindu, “U.S. macroeconomic headwinds, including tariff and debt uncertainties, etc already has the potential to shrink discretionary IT budgets in H2 FY26, impacting tech hiring in India.’’

According to Equirus Securities, a financial services firm that also tracks the IT sector, the demand commentary, for the upcoming quarters, may remain cautious (unless some certainty relating to tariff related issues emerges).

The Q2 of FY’26 saw a mild uptick in hiring by Infosys, Wipro and HCLTech. TechM said it added 5,817 people (YoY) in the Business Process Services (BPS) segment. However, the quarter witnessed, TCS, the tech bellwether, cutting close to 20,000 jobs.

In the second quarter, on a YoY basis, despite a rise in attrition rates, 3 out of the 5 Tier 1 service firms have still recorded a YoY net headcount addition, noted  Kamal Karanth, Co-founder of Xpheno, a people solutions firm. adding, “A rise in attrition rate along with net headcount growth, indicates an active hiring funnel and a headcount optimisation process in play’’

Sachin Alug, CEO, NLB Services. a U.S-based talent solutions provider, opined that “Hiring during Q2 FY26 indicated a renewed wave of confidence across the IT sector, with firms accelerating investments in AI-driven transformation and digital innovation.’’

Mr.  Vashistha further said hiring would witness a critical shift as AI reinvention was the top most growth priority for enterprises. “Firms adept at delivering AI-first solutions will see a significant uptick, fuelling demand for specialised AI/ML skills,’’ he observed.

According to him, this paradigm necessitates a talent pivot, with 67% of engineers feeling their roles are changing and over 85% turning to upskilling. “For AI-First partners like Tholons, this transition offers a major opportunity to drive client transformation and offset macro weakness,’’ Mr. Vashistha added.