NASSCOM Forecasts $245B Revenue and 2.9 Lakh Jobs for Indian Tech Industry in FY23
- ByStartupStory | March 2, 2023
As per NASSCOM’s strategic review, the Indian technology industry is expected to generate a revenue of $245 billion by the end of the current fiscal year, while creating 290,000 new job opportunities. Despite the economic downturn in major markets such as North America and Europe, the technology industry has achieved a growth of $19 billion in incremental revenue in FY23 in comparison to FY22.
NASSCOM reports that the technology industry’s export segment, which is its primary source of revenue, is projected to achieve a growth of 9.4% and generate $194 billion in revenue by the end of the current fiscal year. Despite macro-political and economic challenges, the industry is said to be prepared for a future characterized by constant change and uncertainty.
Krishnan Ramanujam, the Chairperson of NASSCOM, stated that despite facing global challenges and a slight slowdown in demand, the technology industry’s value proposition of being a dependable partner for global enterprises and possessing qualities of agility, resilience, and transformation has allowed the industry to reinforce its leadership in both established and emerging areas.
NASSCOM has reported that the technology industry has experienced growth in various segments including IT services, BPM, software products, and ER&D, as well as in the domestic market. The industry, which has a workforce of over 5.4 million, continues to be a significant net employer, with 290,000 new jobs being created in FY23. The industry is also a global leader in AI skills penetration, ranking second in terms of AI/ML BDA talent pool and third in terms of installed supply of cloud professionals, with a digitally skilled workforce of 36%.
According to NASSCOM, approximately two million women are currently employed in the technology industry, and during the fiscal year, 140,000 new female employees were added to the workforce. NASSCOM President Debjani Ghosh stated that the industry is poised for rapid growth to reach a revenue of $500 billion by 2030, thanks to progressive policies, effective governance, a talented workforce, and a commitment to digital trust, which includes ensuring accessibility, privacy, security, and reliability.
The proportion of digital technology in the technology services revenue is steadily increasing, rising from 26-28% in FY20 to a projected 32-34% in FY23. This reflects a growing adoption of digital technology in the industry. A CIO survey conducted by McKinsey found that 75% of CIOs anticipate ongoing investment in digital technology, with priorities shifting in response to changes in the macroeconomic environment.
As buyer preferences continue to evolve, tech service providers are shifting towards becoming transformational partners rather than vendors. This allows them to provide domain specialisation and impact-driven commercial arrangements.
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