Indian Tech Industry Forecasts $254 Billion Revenue, 60K New Hires by FY24
According to a report by Nasscom, the technology sector in India saw its revenue climb to $253.9 billion in FY2024, marking an estimated $9.3 billion increase from the previous fiscal year, representing a growth rate of 3.8 percent. During the same period, the industry added approximately 60,000 new employees, bringing the total workforce to 5.43 million. The report highlights a persistent emphasis on digital competencies, with AI, Cloud computing, data analysis, and cybersecurity standing out as the most sought-after skills in the sector.
The anticipated revenue from Indian tech services exports (excluding hardware) is poised to reach $199 billion in reported currency, indicating a 3.3 percent increase compared to FY2023. “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 the 4Rs Reshape - accelerate transition to AI-first companies; reskill - make talent the biggest competitive advantage; rewire growth and raise IP creation and R&D investments", said Debjani Ghosh, President, Nasscom.
In FY2024, the engineering research and development (ER&D) sector accounted for 48 percent of the overall increase in export revenue. Global Capability Centers (GCCs) persist in their investments in India, broadening their service offerings, while concurrently, new GCCs are initiating operations in the country.
The industry saw an addition of 53 new GCCs in 2023, the report 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", said Rajesh Nambiar, Chairperson, Nasscom. With digital tech spending expected to grow in 2024, “We will also witness the emergence of alternative demand source, customer retention, faster go-to-market strategies in newer markets for enterprises", Nambiar added.
As a result of sustained investments from both the government and enterprises in emerging technologies, India's domestic sector emerged as a significant driving force. The report highlights key drivers of this growth, including an emphasis on application development, automation, verticalized products, software-as-a-service (SaaS), and data migration for AI and Cloud enterprise spending. “The industry is committing 60-100 hours per year per employee on upskilling", the findings showed.
