As 2025, a year marked by global volatility, concludes, attention turns to the evolving landscape of Indian corporations in 2026. Experts predict three dominant trends will define the year for employers and employees alike: a strategic pivot in hiring towards smaller cities and towns, the accelerated expansion of the gig workforce, and the deepening integration of artificial intelligence, which continues to reshape roles and responsibilities.
The Rise of Hinterland Hiring
Companies are increasingly looking beyond major metropolitan areas to tap into talent pools in India's smaller cities and towns. This shift is driven by a compelling economic rationale. Aditya Narayan Mishra, MD and CEO of CIEL HR, explains that the total cost of hiring and retaining an employee is typically 5-10% lower in the longer run when sourcing from non-metro regions. Employees who migrate for work tend to stay with companies longer compared to those already based in large cities with abundant local opportunities.
Recruitment firms are already setting up hubs to facilitate this trend. For instance, CIEL HR established a hiring centre in Patna about 18 months ago, with 25 recruiters scouting talent from neighbouring states like Chhattisgarh and Odisha, as well as smaller towns in Bihar. A similar hub was earlier launched in Mysuru, Karnataka, to access IT talent. Companies are adopting a blended workforce model, with a significant portion hired locally, 20-25% from nearby towns, and the remainder from other states, particularly in temporary staffing roles.
Gig Workforce Set for Exponential Growth
The gig economy in India is poised for a significant leap forward in 2026. Cost pressures on companies will fuel gig hiring across a wider spectrum of skills, moving beyond seasonal spikes. A key catalyst is the implementation of new labour codes, which cement social security benefits for gig and platform workers.
Under the new reforms announced by the ministry of labour and employment in November 2025, online food delivery, e-commerce, and quick-commerce firms must allocate up to 2% of their annual turnover for the welfare of these workers. Benefits now include retirement savings through provident funds, ESIC coverage, and other insurance and social security measures. This safety net is expected to attract a larger number of informal workers into the gig fold.
Lohit Bhatia, CEO-designate for Quess Corp, notes that gig roles will scale up across both blue-collar and white-collar sectors. Projections from the Press Information Bureau underscore this growth, estimating the country's gig workforce will swell from 10 million in 2024-25 to 23.5 million by 2029-30.
AI's Deepening Impact on the Workplace
The disruption caused by artificial intelligence, which led to layoffs at major firms like Amazon, Tata Consultancy Services, Google, Microsoft, and Meta in 2025, is far from over. According to Rohini Lakshane, a technologist and researcher, 2026 will see a deepening of the corporate restructuring process around AI systems.
Lakshane warns that jobs may not vanish in waves but will be "hollowed out," with fewer people doing more work assisted and monitored by AI. Tasks will be automated, recombined, or shifted, creating insecurity if not communicated transparently. Workers who can design, audit, or manage AI systems will remain in high demand, but expectations and pressure on employees are likely to rise sharply, with thinner margins for error.
Ironically, India Inc is among the swiftest adopters of AI. An EY report surveying 50 employers and 800 employees found that about 62% use Generative AI regularly at work. An overwhelming majority—90% of employers and 86% of employees—believe AI positively impacts productivity. Furthermore, 75% of employees and 72% of employers feel GenAI enhances decision-making.
As the Year of the Fire Horse approaches, symbolizing bold decisions and ambition, India's corporate sector is bracing for a transformative year defined by geographic redistribution of talent, the formalization of flexible work, and an irreversible tech-driven evolution of the workplace.
