NASSCOM releases the annual strategic review of India’s tech sector, which has seen a massive boom over the past 10 years. The Executive Summary of Progress titled “Think Digital, Think India, From Resilience to Resurgence” has a constructive foreword from NASSCOM Chairman Debjani Ghosh highlighting the performance of India’s tech sector in 2021 and 2022 with forecasts for 2023 .
In FY2022, the tech industry in India reached $227 billion in total revenue, more than doubling the pre-pandemic revenue level of FY2019. Importantly, the sector added its The most recent $100 billion in ten years, but the first $100 billion took thirty! The industry created a record 445,000 net new jobs in fiscal 2021, surpassing the 5 million total job mark. The market’s defining growth has been paved by an unwavering focus on customer centricity, domain-specific solutions, go-to-market agility, a digital-focused talent pool, and a laser-like focus on delivering future-ready solutions.
Global and Indian growth forecasts remain optimistic for FY2023. The International Monetary Fund (IMF) predicts that the global economy will expand by 4.4% in 2019, beating the projected expansion of 3.0%. According to NASSCOM’s Enterprise CXO Survey 2022, the sentiment of Indian CXOs is net positive on overall growth and optimistic on technology spending. Sixty percent of organizations estimate a 6% increase in technology spending in fiscal year 2022, despite balancing the competing demands of employee safety and wellbeing and organizational digital transformation. More than seventy-five percent of CEOs expressed confidence in achieving double-digit revenue growth, and R&D spending is back in the spotlight.
According to the report, the IMF has projected a global GDP growth rate of 5.9% for 2021. However, this does not take into account geographical differences, especially in developing countries which have struggled to obtain the vaccine. and the money to buy it and distribute it. The need to keep businesses going even during lockdowns has encouraged them to look to technology as a cure; consumers also spent heavily on online platforms, including games, digital entertainment, social media and e-commerce. These factors pushed global technology spending (non-hardware) to more than $1.7 trillion in 2021, an increase of nearly 9% year-over-year, and is expected to reach $1.8 trillion. at a growth rate of 6.5% in 2022. The supply market has grown at a rate of 12-14%, reaching $238-243 billion by 2021.
In the 2022 snapshot, the report explains how India’s tech industry has witnessed explosive development as the global economy and many industries continued to grapple with the challenges posed by the protracted pandemic in fiscal year 2022. Technology has become the linchpin that has allowed organizations to keep the lights on and accelerate their journey to becoming future-ready, agile and resilient. Fiscal 2022 is expected to be a pivotal year for India’s tech industry, with overall industry sales reaching $227 billion (15.5% YoY increase) in fiscal 2022. While the sector has surpassed $100 billion in 2012, it has doubled in size over the past decade.
NASSCOM research suggests that six major global megatrends will refocus policies, strategies and investments globally over the next 5-8 years and beyond. Development in the transformation of the global talent pool, the replanning of the global supply chain, the global regulation of big technologies, ESG-driven business models, the formalization of the circular economy and Tech4Good @Pace and Scale have shaped the landscape since the start of the pandemic with a collective impact on businesses, employees and citizens.
Among the dominant themes for FY2022, the review observes how Indian tech startups began to scale, grew as a nation of digital talent, led to hybrid work models, drove platformization in technology adoption and 0+0 change in e-commerce. To further investigate, analyze and support India’s digital transformation imperatives, NASSCOM assessed the key technology-driven initiatives that companies across 18 of India’s major industries should prioritize over the next 3, 5 and 10 years through to its available maturity model here.
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