According to industry body Nasscom, the sector will also continue to generate employment, adding approximately 1.35 lakh new jobs in FY26. This will bring the total number of direct employees in the industry to 59.5 lakh, up from 58.15 lakh at the end of FY25.
The announcement was made in Mumbai, highlighting the resilience of India’s IT and digital services ecosystem even as global demand patterns evolve.
However, the pace of hiring is expected to remain subdued. Net job additions will increase by only about 2,000 compared to FY25, when the industry added 1.33 lakh employees — making this one of the slowest employment growth periods in recent years.
Industry experts attribute the cautious hiring outlook to automation, AI-driven productivity gains, and uncertain global economic conditions, which are prompting companies to optimize workforce expansion while continuing to invest in high-value digital capabilities.