MUMBAI: In spite of subdued sentiment and longer decision-making cycles that have led to pronounced cost-optimization measures, India's IT exports are anticipated to grow faster than the Indian economy in the financial year 2022-23. It is anticipated that India's GDP will expand by 7% this year.
India's export revenue in the information technology sector is anticipated to rise by 11.4% to $194 billion in constant currency terms, according to Nasscom on Wednesday. It expanded by 9.4% in reported terms, with a 2% cross-currency impact. In total, the tech industry in India is expected to make $245 billion in the fiscal year 2022-23, adding $19 billion in incremental revenue during that time.
The United States, which is still a major market, grew at 10.4%, while APAC grew at 10.1%. Europe, on the other hand, saw 7.3% slower growth for the industry. The following core industries saw growth: Business segments include BFSI, manufacturing, telecom/hitech, ER&D, IT services, BPM, and products.
However, the sector added $30 billion in additional revenue last year as the industry expanded by 15.5% to $227 billion.
Nasscom-McKinsey predicted two years ago that India's technology services industry would generate $300-$350 billion in annual revenue by leveraging cloud, artificial intelligence, cybersecurity, and other new technologies. According to Nasscom, the industry is expected to reach $500 billion in 2030.
According to Debjani Ghosh, the president of Nasscom, "If you look back, 2022 was a year of resilience, a year of focus on building strong resilience that will allow us to adapt and grow leading to strong, stable revenue growth as well as business growth across sectors."
“The industry continues to focus on investing for growth in the non-normal environment that we are living in today. She stated this on Wednesday at the Nasscom Strategic Review 2023 — Priming for a No Normal Future in Mumbai, "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 by 2030."
According to Nasscom Chair Krishnan Ramanujam, the IT business landscape has undergone significant shifts. "Let's get the belts tightened, cost structures right, and be as efficient as we can," is the industry's position. The majority of customers want to be prepared. Priority is being given to cost and optimization initiatives, he stated.
When asked about the outlook for the fiscal year 2023–24, Ghosh stated that Nasscom is receiving cautious optimism from CEOs. While we are aware that spending on technology will rise, we are also aware of the severe obstacles. She stated, "Our members are saying that the financial year 2023-24 appears to be similar, but we will not go beyond this."
The industry added 2.9 lakh new jobs, bringing the total number of workers to 5.4 million. The Indian IT industry has a formidable talent pool, ranking third in terms of cloud professionals' installed base and second in terms of AI/ML talent, with a workforce that is digitally skilled at 36%. The sector saw an increase of 1.4 lakh women employees last year, to over 2 million.
India added 65 new global capability centers (GCCs) last year, bringing the total number of GCCs in the country to 1,570. These GCCs have made India a popular destination for engineering R&D. Subsectors like ER&D also saw an 11.1% acceleration in double growth. There are 27,000 startups in India, and the country added 1,300 new ones and 23 unicorns last year.
She stated that the industry's strength and resilience in spite of global headwinds have once more been highlighted by insights from CIO conversations. 75% of CIOs polled by McKinsey CIO anticipate that spending on digital will continue in the face of shifting priorities and a shifting macroeconomic environment.