India’s Tech Sector Sees Slowdown in Job Openings, Except for GCCs
India's tech demand fell 27% year-on-year in October. While GCCs showed growth, entry- and mid-level job openings declined sharply.
India’s tech sector saw a slowdown in job openings in October, and the sector’s contribution to total talent demand dropped to 48% from 84% in 2022, according to a report by Xpheno.
The report highlights that active job opening projections in the tech sector declined 27% year-on-year (y-o-y) in October. Among the various segments, IT services saw a 24% y-o-y decline in demand, while software products declined 22%. However, funded tech startups and Global Capability Centres (GCCs) bucked the trend, with a 13% and 2% increase in demand, respectively.
GCCs Shine Amidst Slowdown
GCCs now account for around 10% of the total tech talent demand, with 11,000 new openings in October. This growth is a positive sign for the sector, which has been a significant contributor to India’s tech industry.
Kamal Karanth, Co-founder of Xpheno, attributed the slowdown in the tech sector to “challenges with discretionary tech spending and sustained headwinds in IT.” However, he noted that GCCs have shown positive signs, and the sector may see a recovery in the future.
Entry-Level Jobs Hit Hard
The report also highlights the decline in entry-level job openings, with a 19% y-o-y decline. Mid-junior level openings saw the sharpest decline at 28%, followed by mid-senior level openings, which were down 10%.
Despite the slowdown in mega cities, tier 2 and tier 3 locations saw a 41% month-on-month increase and a 2% y-o-y increase in job openings, with 24,000 openings.
The report suggests that while the tech sector faces challenges, GCCs and tier 2 and tier 3 cities may be potential growth drivers for the industry.
