NASSCOM issues the annual strategic review of India’s technology sector, which experienced a massive boom in the last 10 years. The executive summary of progress titled “Think Digital, Think India, From Resilience to Resurgence” has a constructive foreword from the President of NASSCOM, Debjani Ghosh, highlighting the performance of India’s technology sector in 2021 and 2022 with predictions for 2023.
In FY2022, the technology industry in India reached $227 Billion in total revenue, exceeding the pre-pandemic FY2019 revenue level by more than double. Importantly, the sector added its most recent $100 billion in ten years, but the first $100 billion took thirty! The industry added a record-breaking 445,000 net new jobs in FY2021, surpassing the 5 million mark in total employment. The market-defining growth was paved by an unwavering focus on customer centricity, domain-specific solutions, go-to-market agility, a digital-first talent pool, and a laser-like concentration on delivering future-ready solutions.
Global and India growth predictions remain optimistic for FY2023. The International Monetary Fund (IMF) forecasts that the global economy will expand by 4.4% in 2019, outpacing the projected 3.0% expansion. According to NASSCOM’s Enterprise CXO Survey 2022, Indian CXO opinion is net positive on overall growth and bullish on technology spending. Sixty percent of organizations estimate a 6% increase in technology spending in FY2022, despite balancing the competing demands of employee safety and wellness and organizational digital transformation. Over seventy-five percent of CEOs have expressed confidence in reaching double-digit revenue growth, and R&D expenditure is back in the spotlight.
According to the report, the IMF projected a 5.9% global GDP growth rate for 2021. However, this does not account for geographical differences, particularly in developing nations that struggled to get the vaccine and the cash to purchase and distribute it. The need to keep businesses operating even during lockdown times encouraged them to view technology as a cure; consumers also spent extensively on online platforms, including gaming, digital entertainment, social networking, and e-commerce. These factors boosted global technology expenditures (excluding hardware) to over $1.7 trillion in 2021, a nearly 9% year-over-year increase, and they are projected to reach $1.8 trillion at a 6.5% growth rate in 2022. In addition, the worldwide sourcing market experienced a growth rate of 12-14%, reaching $238-243 billion by 2021.
In the overview of 2022, the report explains how India’s technology industry experienced explosive development when the world economy and many industries continued to cope with the problems posed by the prolonged pandemic in FY2022. Technology became the pivot that enabled organizations to keep the lights on and speed their journey to become future-ready, agile, and resilient. FY2022 is anticipated to be a watershed year for India’s technology industry, with overall industry sales reaching $227 billion (15.5% y-o-y increase) FY2022. If the sector surpassed $100 billion in 2012, it has doubled in size during the past decade.
NASSCOM’s research suggests that six major global megatrends will refocus policies, strategies, and investments on a global scale over the next 5-8 years and beyond. Development in Global Talent Pool Transformation, Global Supply Chain Replanning, Global Big Tech Regulation, ESG-Led Business Models, Formalization of Circular Economy, and Tech4Good @Pace and Scale are shaping the landscape since the onset of the pandemic with collective impact on businesses, employees, and citizens.
Among dominating themes for FY2022, the review observes how Indian tech startups started to scale up, grew as a digital talent nation, led in hybrid work models, drove platformization in tech adoption, and 0+0 shift in eCommerce. To further study, analyze, and support India’s digital transformation imperatives, NASSCOM has assessed the top technology-driven initiatives companies across 18 of India’s core sectors should prioritize in the next 3, 5, and 10 years through its maturity model available here.
First, thank you for your precious time reading the stories (without paywalls) I publish on Startups to Enterprises covering the EU, China, the US, and India. Second, I request you to contribute financially (any amount) to help me sustain this as an independent digital business news media.
If I receive a request for a sponsored post, I ensure I see merit that is meaningful for erudite and informed readers like you. In the bargain, I lose out on sponsorships wherein I need funds to sustain this effort. Your contribution helps me stay afloat.
Please note that your contribution is treated as revenue generated and not a donation; hence, there are no 80G or other donation certificates. In fact, as I am eligible to pay for the revenue generated, I will pay taxes on the same.
You deserve to know that I abide by journalistic ethics and practices to ensure I tell the stories as is, unbiased. You can follow us on Facebook, Linkedin, and Twitter, bookmark us on Google News, and finally, PayPal us here.