17 February 2024 – In a comprehensive annual review, Nasscom, the leading trade body representing the Indian IT industry, projects a steady growth of 3.8% for the Indian information technology sector in the fiscal year 2024, anticipating a total revenue of $253.9 billion. Despite facing a challenging economic climate marked by a 50% reduction in global tech spending and a 6% decline in tech contracts in 2023, Nasscom remains optimistic about the industry’s resilience.
The Indian IT sector is poised for incremental growth in FY24, as Nasscom releases its annual forecast, navigating through a tough global economic landscape. The report acknowledges the industry’s ability to weather challenges while foreseeing positive indicators for the upcoming fiscal year.
Nasscom’s Annual Review:
In its annual review, Nasscom sheds light on the significant hurdles faced by the technology industry, both in India and on the global stage. Despite a substantial drop in global tech spending and a decline in tech contracts, the Indian IT sector is expected to achieve a commendable 3.8% growth, underscoring its adaptability and strategic resilience.
Despite economic headwinds, the industry managed to add 60,000 net jobs in the current fiscal year, bringing the total headcount to 5.43 million. Companies, in response to the cautionary demand environment, have been focusing on enhancing utilization and adopting a more just-in-time hiring model. Key segments such as global capability centers (GCC) and Engineering R&D have emerged as growth drivers, leveraging digital capabilities and global ER&D sourcing.
Nasscom’s Outlook:
Nasscom Chairperson Rajesh Nambiar acknowledges the prevailing challenges but expresses confidence in the industry’s ability to rebound. With digital tech spending expected to grow in 2024, Nambiar anticipates alternative demand sources, customer retention, and faster go-to-market strategies in newer markets for enterprises.
Capability Building for FY2025:
Nasscom President Debjani Ghosh emphasizes the significance of capability building in FY2025, outlining the need for the industry to focus on the 4Rs—reshape, reskill, rewire, and R&D investments. Navigating the current challenges sets the stage for a strategic approach to ensure sustained growth and competitiveness.
Conclusion:
Nasscom’s foresight into the Indian IT sector’s trajectory in FY24 reflects a resilient industry that, despite global economic uncertainties, continues to adapt and innovate. The projected growth signifies not only recovery but an industry poised for strategic transformations and advancements in the digital landscape.
