
India's IT-BPM sector expects net hiring to drop over 26% in H1 FY27, driven by AI automation and a shift to flexible talent models, an industry report said.
India's IT-BPM sector is heading for a sharp hiring slowdown. Net workforce additions in the first half of fiscal 2027 are projected to drop more than 26% from the same period a year earlier, according to a new industry report.
The report, prepared by a leading staffing industry group, points to two drivers. Companies are leaning harder on AI-powered automation to handle routine tasks, reducing the need for entry-level headcount. At the same time, a shift toward flexible talent models – contractors, gig workers, and short-term project hires – is replacing permanent additions. Global capability centers (GCCs), which had been a bright spot for recruitment, are now expected to trim their hiring plans as well.
Macroeconomic uncertainty and regional conflicts are reinforcing the caution. Clients in the U.S. and Europe, still working through higher interest rates and uneven demand, are pressing service providers for tighter cost controls. That pressure flows directly into staffing budgets.
Some segments of the IT-BPM sector will fare worse than others. The report flags a steeper decline in business process outsourcing roles, where automation is more easily applied, versus niche technology services where specialized skills remain in demand.
The projection covers the six months ending September 2026. A final tally will depend on whether global demand picks up in the second half of the calendar year, the report said.
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