Synopsis Nasscom president Debjani Ghosh said it will be difficult to make a prediction for revenue growth in FY24, but pointed to a chief executives' survey which said they are "cautiously optimistic" about the new fiscal. ETtech The top-five companies have a strong deal pipeline of $18 billion, but there are a slew of headwinds the sector is staring at (Illustration: Rahul Awasthi) The country’s technology industry is expected to grow double digits in constant currency terms in FY2023E, industry body Nasscom revealed on Wednesday. On Wednesday, Nasscom released the Strategic Review 2023 – Priming for a ‘No Normal’ Future, on the sidelines of the Nasscom Technology & Leadership Forum (NTLF) 2023.
The report showcases the key trends that defined 2022 and the ones for 2023. Despite the global headwinds, the technology industry in India is set to witness a steady growth in FY2023E. Nasscom estimates the Indian tech industry revenue to grow by $245 billion, in reported currency with a cross-currency impact of 2%.
This reflects an incremental net revenue addition estimated at $19 billion during the year. The growth has been across segments of IT services, BPM, software products, ER&D and domestic market. Mirroring the trend, the Indian service export revenue is expected to touch $194 billion in reported currency, a growth of 9.
4% compared to FY2022. Growth in exports is seen across all the major markets. The USA growing at 10.
4% and APAC at 10. 1% continue to be the major market. FY2023E recorded growth across core sectors - BFSI, manufacturing, and telecom/HiTech.
“FY23 has been another growth year for the industry creating impact for the country and all our stakeholders. Despite global headwinds and some moderation in demand, the value proposition of a transformation partner for global enterprises enabled the industry to strengthen its leadership,” said Krishnan Ramanujam, Nasscom chairperson. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories According to the report, India’s massive digital infrastructure played a key role in driving India’s domestic tech adoption.
With continued investments by the government and enterprises in emerging technologies, India’s domestic sector emerged as the great propeller. Domestic revenue is growing 13% from FY22 in rupee terms, with a significant uptick in digital spending amongst Indian enterprises. The industry continues to be the net employer with over 5.
4 million workforce, creating 290,000 new jobs in FY2023. With a 36% digitally skilled workforce, the industry remains on the top in terms of AI skills penetration, the second largest in terms of AI/ML BDA talent pool, globally and third globally, in terms of installed supply of Cloud professionals. With a total of two million women employees, the industry showcases a deep focus on bringing diversity to the workplace reporting a net addition of over 140,000 women employees during the year.
Debjani Ghosh, president of Nasscom, said, “In a no-normal environment that we are living in today, the industry focus continues to be on investing for growth. Propelled by forward-looking policies, strong governance, talent and digital trust to ensure accessibility, privacy, security, and reliability, the tech industry in India is on track to accelerate growth to $500 billion n by 2030. ” In recent years, India has emerged as a global powerhouse for deeptech innovation capabilities & R&D and is steadfastly committed to ushering future growth and innovation for global enterprises.
Global Capability Centres (GCCs) have had a huge impact in making India a destination of choice for Engineering R&D. 40% of global GCCs are present in the country today which demonstrates a tremendous opportunity for the country to scale up. India added more than 65 new GCCs in the year taking the total to more than 1570.
Sub-sectors such as ER&D also witnessed an accelerated double growth at 11. 1% The proportion of digital tech in the overall technology services revenue has been increasing year after year. From only around 26-28% in FY2020, to leapfrogging to over 32-34% in FY2023, there has been increasing penetration of digital tech in the industry.
Within this, Analytics, Cloud, and Cybersecurity are emerging as the fastest growing segments wherein the share of Cloud deals was reportedly four times of pre-pandemic levels. Interestingly, since 2010, 60% of the total 266,000 tech patents filed in India are within emerging technologies; emerging tech patents accounted for 73% of all tech patents in 2022. Rising above the uncertainties, the Indian tech startups in FY2023E focused on strengthening business fundamentals and governance.
India added more than 1,300 new startups and 23 new unicorns in 2022. The country has also emerged as a hotbed for deeptech startups in India, reaching a total of more than 3,000 in FY23 wherein more than 485 inventive deeptech startups are developing innovative solutions. Despite global headwinds, the industry is expected to showcase strength and resilience.
According to McKinsey CIO survey, 75% of CIOs expect spending on digital to continue with evolving priorities as per changing macroeconomic environment. Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. click here! Wednesday, 01 Mar, 2023 Experience Your Economic Times Newspaper, The Digital Way! Read Complete Print Edition » Front Page Pure Politics Companies Brands & Companies More Economy Grows at a Slower Pace of 4.
4% in Dec qtr The Indian economy grew at a slower-than-expected 4. 4% in the December quarter compared with 6. 3% in the preceding three-month period, weighed down by base normalisation and weakness in consumption.
Hope It Doesn’t Take a Second Pandemic to Build Right Tools The world needs to build more tools and global institutions to tackle any future pandemic, Bill Gates, cofounder of Microsoft and co-chair of the Bill & Melinda Gates Foundation, said in an interview to ET’s Deborshi Chaki. SAP to Double India Investment in 5yrs India is “a winner” and “a bright spot” in a world that’s in turmoil, says Christian Klein, chief executive at SAP SE. The German software giant aims to double its investments in India over the next five years.
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