According to a collaborative report by Nasscom and Avasant, India continues to be the preferred outsourcing destination for businesses aiming to build and expand their digital services portfolio amid the global economic headwinds.
According to the report, about 45 per cent of high-technology (tech) and travel and transportation companies, 41-43 per cent telecom, discrete manufacturing, and construction firms, opted to nearshore to India in 2023, underscoring country’s growing appeal as a global hub for digital services outsourcing.
Traditional sectors such as energy and utilities, construction, and engineering, demonstrated substantial growth in their digital talent base, reflecting a broad-based commitment across industries to deepen their digital capabilities.
The report also mentioned that generative artificial intelligence (GenAl) emerged as a prominent technology in 2023, attracting targeted investment from nearly 70 per cent of global enterprises.
This led to sectors including banking, financial services, and insurance (BFSI), high- tech, discrete manufacturing, telecom, media and entertainment, as well as energy, utilities, and alternatives significantly expanding their digital services contracts.
GenAl is poised to receive heightened investment in 2024, with 73 per cent of firms that allocated budgets to GenAl in 2023 deeming it essential to increase spending, especially in talent development.
According to the report, 71 per cent of enterprises spent over 20 per cent of their tech spend on digital last year.
Further, nearly 90 per cent of firms plan to boost investments in key digital technology areas this year, including artificial intelligence/machine learning (AI/ML), big data analytics, cloud computing, cybersecurity, and intelligent automation.
