The Indian IT sector is at a critical juncture. With Indian working hours extended, shift allowances removed, and US tech hiring on pause, professionals are facing extreme pressure. On top of that, rising unemployment, global economic slowdown, and the rapid growth of AI are transforming the job landscape.
In this article, we break down how these events are connected and what lies ahead.
US Tech Hiring Freezes and Its Impact on India
The slowdown in the US tech market isn’t just affecting American workers — it’s having a domino effect globally.
Many US-based companies have:
- Frozen offshore hiring
- Delayed onboarding
- Cut back on outsourcing deals
As a result, Indian IT workers are seeing fewer overseas job opportunities and slower project pipelines. Those working abroad are returning, only to face a saturated job market back home.
Indian Working Hours Extended Without Compensation
To make up for the loss of international business, many Indian firms are quietly increasing employee working hours.
Now, developers and support staff are expected to log in during US shifts — often from 6 PM to 3 AM — and stay available beyond normal hours. Despite this, companies are no longer offering night shift allowances or additional pay.
“We work late nights on US time but get no extra benefit,” shares a software engineer from Hyderabad.
Clearly, Indian working hours have extended, but employee benefits have shrunk.
Returning Professionals Face Fewer Opportunities
As more Indian tech workers come back from the US, they find a job market that’s already struggling.
The number of open positions has dropped significantly. Furthermore, salaries have decreased, and companies are prioritizing younger, lower-cost talent over experienced professionals.
Consequently, returnees often have to accept roles beneath their qualifications just to stay employed.
The Disappearance of Shift Allowances
Previously, companies paid extra for night shifts, provided cabs, and offered meal support. Today, many of these perks are gone.
Cost-cutting has become the new mantra, and shift allowances have quietly vanished. This has resulted in a silent reduction in monthly income, especially for employees working late hours.
Moreover, those who complain about it risk being marked as “non-cooperative” or even losing their projects.
Unemployment Is Rising, Especially for Freshers
The slowdown has also affected campus placements and entry-level hiring.
Fresh graduates are:
- Waiting months for joining dates
- Stuck in limbo after receiving offer letters
- Struggling to get interviews, even with good academic records
In addition, many experienced workers remain on the bench with no active assignments, leading to rising anxiety and financial pressure.
AI Accelerates Job Disruption
While economic conditions worsen, AI adoption is speeding up.
Tools like ChatGPT, GitHub Copilot, and automation platforms are helping companies:
- Write code faster
- Automate customer service
- Generate content and reports
This shift allows businesses to reduce their reliance on human staff, especially for repetitive tasks. As a result, job roles are changing faster than workers can adapt — unless they’re actively reskilling.
Indian IT Workers Are Making Sacrifices
Despite all these challenges, Indian tech professionals continue to push through.
They’re working late into the night, accepting lower salaries, and taking jobs outside their core expertise. Why? To support their families, to stay relevant, and to keep food on the table.
In fact, many are choosing stability over career growth — a mindset that reflects the seriousness of the current situation.
Everything Is Interconnected
Let’s take a step back and look at the bigger picture:
- Indian working hours extended → Due to falling international project loads
- Shift allowances removed → As companies cut costs
- US hiring freeze → Leading to return migration
- AI adoption → Shrinking the need for large teams
- Economic slowdown → Creating job scarcity across all levels
Each factor feeds into the next, making recovery more difficult without systemic change.
What Lies Ahead: Two Possible Futures
The Indian tech sector now faces two possible outcomes.
1. Collapse and Burnout
If companies continue to overwork employees without fair compensation, morale will crash. Burnout, mental health issues, and attrition will rise sharply.
2. Adaptation and Growth
Alternatively, this crisis could serve as a wake-up call.
By investing in upskilling, offering flexible working models, and leveraging AI responsibly, companies can create a more resilient and balanced ecosystem.
The choice, however, must be made quickly.
Final Thoughts
This is more than just a wave — it’s a transformation.
Indian working hours have extended, shift allowances are gone, and job security is weaker than ever. AI is changing the rules, and only those who adapt will survive.
Nevertheless, Indian tech workers have always been known for their resilience. With the right support and timely reform, the industry can bounce back stronger than before.
But it must act — before it’s too late.
What’s your take on this crisis?
Drop your thoughts in the comments or share this with someone who needs to read it.
Also read : Top IT Companies in Pune for Freshers
