India’s technology services industry’s growth can reach $300-350 billion in annual revenues in next five years on the back of emerging technologies including AI and cloud, a report by Nasscom said.
The industry can accelerate by 2-4 per cent in the same period.
The report was conducted by McKinsey & Company Knowledge Partners.
The enterprises are catering to the ever-growing needs of the consumers by their continuous innovation, leading to a shifting global marketplace and 10 per cent annual growth in the IT services sector, generating high returns for shareholders and investors in the last decade, the report said.
The sector is one of the significant contributors to economic growth worldwide.
In India the industry produces about 27 per cent of the nation’s exports and provides livelihoods to about 4.4 million people.
“…India’s technology services industry could accelerate growth by 2-4 per cent over the next five years, reaching $300-350 billion in annual revenues if it can win in the cloud, AI, cybersecurity, and other emerging technologies. This will require closer collaboration among stakeholders across the private sector, academia, and the government,” it said.
The industry is a prime driver of India’s digital dream with a contribution of 8 per cent to the overall economy, the report said.
“The Indian Technology services sector can utilise the potential of deep technologies like cloud, AI, ML, IoT, etc, through effective transformational practices, thereby contributing to the overall economy in the coming decade.
The government needs to encourage and support digital literacy and skilling to ensure its talent, energy, imagination, knowledge, and unmatched commitment unites to address the customers’ surging needs,” Nasscom President Debjani Ghosh said. As the competition intensifies, scale and specialisation will be critical to succeed in the next decade of technology services, the report said.
Talent will also be a key differentiator, and the war for acquiring and retaining the next-gen talent will aggravate in the future.