In a recent report, Nasscom projects a modest 3.8% growth for India’s IT industry in FY24, driven by a challenging economic landscape. Despite a 50% decline in global tech spending and a 6% drop in contracts in 2023, Nasscom remains optimistic about the industry’s resilience.
The report highlights a cautious approach to hiring, with only 60,000 net jobs added in the current fiscal year, bringing the total headcount to 5.43 million. Companies are prioritizing utilization optimization and adopting a just-in-time hiring model in response to uncertain demand.
Chairperson Rajesh Nambiar acknowledges the prevailing headwinds but expresses confidence in the industry’s ability to rebound. He anticipates growth in digital tech spending in 2024, along with the emergence of alternative demand sources and accelerated go-to-market strategies.
The review identifies global capability centers (GCC) and Engineering R&D as growth drivers, fueled by expanding digital capabilities and global sourcing. The addition of 53 new GCCs in 2023 underscores the sector’s robust expansion.
Despite the challenges, the technology services export revenue is expected to reach $199 billion in FY24. Nasscom President Debjani Ghosh emphasizes the need for capability building in the “new normal,” advocating for a focus on reshaping, reskilling, rewiring, and R&D investments to navigate the current landscape.
As India’s IT industry continues to evolve amidst global uncertainties, Nasscom remains committed to fostering growth and innovation in the sector.
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