Employee compensation in IT services is expected to decline in 2026 owing to global market volatility and the AI shift, said Deloitte in a recent talent outlook report.
“The technology sector bears the maximum impact of volatility in global markets including the changes that are happening with regard to the AI shifts. The industry has also seen some moderation in growth rates – all of this is being reflected in the compensation cost budgets,” said Anandorup Ghose, Partner, Deloitte India.
The growth rate for the IT services segment, which was around 7.6 per cent in 2025, is expected to decline to 6.9 per cent in 2026. In comparison, the GCC increment is expected to rise from 9 per cent in 2025 to 8.8 per cent in 2026. IT services, in fact, are anticipated to have the lowest growth among all sectors considered by Deloitte.
The technology sector is taking a cautious stance, with both product and service companies reducing their projections by 10–70 basis points compared to last year.
Meanwhile, GCCs appear as the saving grace in the sector, offering 20-25 per cent higher remuneration than the IT sector, where remuneration lies in the 12-15 LPA range.
Performance dip
The IT services industry has a very sharp performance curve, i.e., fewer top performers and greater concentration in the middle of the curve or the right tail. Promotion rates in the segment continue at 11-12 per cent. However, GCCs remain a growth sector overall. The nature of performance differentiation has not yet become as sharp, said Deloitte.
Published on April 8, 2026