WFO openings rise as AI changes nature of IT work

AI-led changes in the way knowledge workers operate is bringing Indian techies back to the office. And companies in the IT sector are also seeking more work-from-office staff. Monthly job openings that are full time Work From Office (WFO) have seen a steady spike over the past 12 months, according to data from specialist staffing firm Xpheno.

September 2026 saw 92,000 WFO roles, up 26 per cent from the 72,000 roles in the same month last year. On the other hand, full time remote or Work From Home (WFH) roles declined by 21 per cent on a year-on-year basis from 14,000 to 11,000.

Hybrid roles also declined by 7 per cent to 14,000 openings. Speaking to businessline, HR executives suggest that the collaborative nature of IT work alongside the erosion in the cost advantages of remote work has led to companies returning to the older in-office format.

Anil Ethanur, Co-founder, Xpheno suggests that in the immediate period after the pandemic multiple IT/ITeS & BPM industries saw remote and hybrid models delivering a spike in productivity & profitability. “But these gains were difficult to sustain.

Benefits of a low overhead costs model eventually eroded and brought the focus back to sustainable productivity over the long term,” he said. The shift has been accelerated with firms integrating AI and automation into their projects requiring tighter coordination between employees and quicker integration between multiple teams.

Neelabh Shukla, Chief Business Officer, Careernet suggests that most remote work that was voluminous and routine in nature in the period immediately after Covid, has now been automated. “Today, with AI reshaping how work is designed, especially for early-career talent, companies believe that hands-on learning, and direct exposure to experienced teams can make a difference,” he said.

The emergence of specialist talent like FDEs, which require domain specific and client facing work, is also playing a role. “The current phase and stage of AI evolution needs people on the seats till it crosses a certain critical milestone of proven autonomous efficiency.

WFO mode will continue to dominate the talent demand mix for this phase of the AI wave,” Ethanur said. Neeti Sharma, CEO, Teamlease believes that the multiple AI-upskilling initiatives are also requiring employees to show up at work.

“With flatter teams and fewer layers of managers, companies are using the office more deliberately as a place for learning,” she said.