New Delhi, May 4 -- Global capability centres (GCCs) are emerging as a rare bright spot in India's otherwise subdued tech hiring market, even as overall demand continues to weaken.

Hiring by GCCs rose 20% month-on-month in May, accounting for 16% of total active tech job openings, according to staffing firm Xpheno's latest Active Tech Jobs Outlook published on Monday. The segment has also posted a strong 29% year-on-year increase, underlining its growing role as a key driver of incremental demand.

The gains come even as the broader market remains under pressure. Indian tech sector's active talent demand is on another downward slope, with May's outlook dropping 2% compared to the previous month-signalling continued caution at the start of the new fiscal year.

Active job openings stood at about 108,000 in May, reflecting near stagnation after fluctuating demand in the previous quarter. While demand is 5% higher than a year ago, the overall trajectory remains subdued, with hiring activity showing little momentum for a sharp recovery.

"The moderated start to the new fiscal year seems to continue into the first quarter, with all tech cohorts remaining sluggish and conservative on their active hiring," said Kamal Karanth, co-founder, Xpheno.

The sector's contribution to overall talent demand has slipped to 47%, falling below the 50% mark for the second time since December 2025, reflecting a structural cooling in tech hiring.

Among key segments, IT services-the largest employer-continues to face pressure. Hiring remained flat month-on-month at around 43,000 openings and is down 17% year-on-year, indicating persistent weakness in client demand and discretionary spending.

Geographically, hiring trends remain uneven. Demand in megacities rose modestly by 3% over April, while tier-2 and tier-3 locations saw a sharper 10% decline, suggesting that the slowdown is more pronounced beyond core urban hubs.

The report also points to shifts in job formats. Full-time roles, which make up the bulk of openings, declined 6% sequentially, while remote roles fell sharply by 24%. Hybrid roles, however, saw an uptick, reflecting evolving workplace preferences.

Overall, the tech hiring market remains on a soft footing, with demand staying sluggish for more than four quarters. With no clear triggers for a near-term recovery, hiring sentiment across the sector continues to be marked by caution-even as GCCs stand out as one of the few pockets of resilience.

Published by HT Digital Content Services with permission from TechCircle.