Indian IT industry revenues to touch $254B with 3.8% growth in FY24: Nasscom
Indian IT industry’s trade body Nasscom in its annual review noted that there was around a 50% slide in tech spending and a 6% decline in tech contracts in 2023 globally.
The information technology (IT) industry in India is projected to grow by 3.8% only for FY24 to take the total revenues to $253.9 billion, a report said, adding that it is largely due to the challenging economic environment.
Indian IT industry’s trade body Nasscom in its annual review noted that there was around a 50% slide in tech spending and a 6% decline in tech contracts in 2023 globally. “The technology industry in India, similar to global markets, is currently navigating a tough terrain,” it said.
This downcast environment had its bearing on the employee intake by the industry for the current fiscal as only 60,000 net jobs were added to take the total headcount to 5.43 million. Based on the cautionary demand environment, companies have been focusing on enhancing utilisation and shifting to a more just-in-time hiring model.
India poised to surpass US as largest GitHub developer community by 2027: Satya Nadella
Nasscom Chairperson Rajesh Nambiar said, “While headwinds like global economic slowdown, inflation, recessionary fears, and geopolitical conflicts continue to pose challenges, we are confident that the industry will bounce back."
"With digital tech spending expected to grow in 2024, we will also witness the emergence of alternative demand sources, customer retention, and faster go-to-market strategies in newer markets for enterprises,” he added.
According to the review, segments such as global capability centres (GCC) and Engineering R&D emerged as growth hotspots as the addressable market expanded with digital capabilities and global ER&D sourcing.
GCCs continue to invest in India, expanding their service portfolios, and at the same time, new ones are setting up operations. The industry saw an addition of 53 new GCCs in 2023.
The technology services export revenue is expected to be $199 billion for FY24.
Nasscom President Debjani Ghosh said, “We do see FY2025 as the year of capability building as the new normal. Navigating the current challenges will require the industry to focus on 4Rs—reshape, reskill, rewire and R&D investments.”
Edited by Suman Singh