India’s IT-BPM hiring may fall 26 per cent in H1 FY27: Report

Bengaluru:India’s IT-BPM sector is bracing for one of its weakest hiring phases in years, with net workforce additions expected to fall below 70,000 in the first half of FY27, down more than 26 per cent from an estimated 95,000 additions in the same period last year.

The slowdown comes as companies shift away from traditional headcount-led growth and focus instead on AI-driven productivity, leaner operating models and flexible talent. The trend points to a broader reset in how the 5.95-million-strong industry plans its workforce.

According to technology consulting and talent advisory firm HAN Digital’s India IT-BPM Workforce Outlook Report 2027, hiring between April and September is expected to become increasingly selective. Companies are likely to prioritise high-value capabilities and AI-specific roles, while using contract and flexible workers to manage attrition and project requirements.

Global capability centres are expected to remain the biggest hiring engine, but their pace of expansion is also set to moderate. GCCs are projected to add 30,000-32,000 employees in H1 FY27, compared with 45,000 during the corresponding period last year.

Hiring at GCCs is expected to centre on AI and machine learning engineering, platform capabilities, cybersecurity and specialised domain roles rather than broad-based delivery positions.

IT services, consulting, Big Four and product engineering firms are expected to add 22,000-25,000 employees during the six-month period, down from 35,000 a year earlier.

Pure-play BPOs, MLOps companies and technology startups are likely to add another 8,000-10,000 employees, compared with 15,000 in H1 FY26.

The projections are based on reported first-quarter financial results and insights gathered from a survey of more than 350 companies.

The hiring slowdown is also being shaped by wider economic uncertainty. Ongoing conflicts in West Asia have added to concerns around global demand, while companies are tightening spending and reassessing discretionary investments.

Customers in sectors such as retail, travel and manufacturing are delaying discretionary spending and slowing technology investments, adding to pressure on technology companies to keep costs under control.

The shift towards flexible staffing is consequently gaining momentum, with businesses increasingly using contract talent for project-based requirements rather than expanding permanent headcount.

For India’s IT-BPM industry, FY27 is shaping up as a year of selective hiring rather than broad-based expansion. AI and specialised skills are likely to account for a growing share of new roles, while flexible workforce models could become a more permanent feature of the sector’s hiring strategy.