According to a recent report by Nasscom, India remains the prime location for businesses aiming to enhance their digital services offerings. The report, released on Monday, indicates a robust inclination among companies to increase their investments in advanced digital technologies such as AI, data analytics, and cybersecurity throughout 2024.
The findings of the Nasscom survey reveal that 71 per cent of enterprises in India allocated over 20 per cent of their technology budgets to digital initiatives in 2023. Looking ahead, approximately 90 per cent of these companies are preparing to escalate their investments in critical areas of digital technology next year. This includes focusing on artificial intelligence (AI) and machine learning (ML), big data analytics, cloud computing, cybersecurity, and intelligent automation.
The report underscores a shifting focus towards cybersecurity by the first half of 2025. This pivot is largely in response to the growing adoption of generative AI (gen AI), which gained prominence in 2023. Rapid advancements in gen AI have highlighted the need for enhanced security measures and driven a surge in demand for digital talent. Indeed, Nasscom noted that 83 per cent of enterprises reported that over 6 per cent of their total workforce is now engaged in digital roles.
Moreover, the report detailed how certain sectors notably expanded their digital services contracts. Industries such as BFSI (banking, financial services, and insurance), high-tech, discrete manufacturing, telecom, media and entertainment, energy, utilities, and alternatives are broadening their digital footprint.
Furthermore, Nasscom’s findings emphasise India’s continued role as the top outsourcing destination for global businesses looking to develop and extend their digital services. More than 50 per cent of organisations in sectors such as travel and transportation, telecom, media and entertainment, and construction and engineering prioritise India as a preference for their outsourcing needs. Additionally, around 47-49 per cent of firms in sectors, including telecom, media and entertainment, discrete manufacturing, and energy and utilities, have chosen to outsource their digital services to their capability centres in India.
These trends showcase India’s strategic importance and its burgeoning role as a central hub for digital services and technology investment on a global scale.
