Tech sector to grow 3.8% to $253.9 bn, to generate 60K jobs in FY24: Nasscom

The industry will create 60,000 new jobs in FY24, taking the total number of employees to 5.43 million.
Representative Image.
Representative Image.

BENGALURU : Technology industry has crossed $250 billion revenue with an addition of $9.3 billion incremental revenue in the current fiscal and it is growing at 3.8%, according to nasscom, which released the key findings of the ‘Strategic Review 2024: Rewiring Growth in the Changing Tech Landscape’ on Friday.

The industry will create 60,000 new jobs in FY24, taking the total number of employees to 5.43 million.

It said with nearly 50% slide in tech spending and 6% fall in tech contracts in 2023 globally, the industry in India, similar to global markets, is currently navigating a tough terrain.

However, sub-sectors such as GCC (global capability centres) and ER&D (Engineering, Research and Development) emerged as growth hotspots.

The ER&D sector alone contributed 48% to the total export revenue addition in FY2024, nasscom said. GCCs continue to invest in India, and the industry saw an addition of 53 new GCCs in 2023.

Rajesh Nambiar, Chairperson, nasscom, said, “While headwinds like global economic slowdown, inflation, recessionary fears, and geopolitical conflicts continue to pose challenges, we are confident the industry will bounce back. With digital tech spending expected to grow in 2024, we will witness emergence of alternative demand sources, customer retention, faster go-to-market strategies in newer markets for enterprises.”

CEOs expect technology spending to rise in 2024. Industries like Hi-Tech, BFSI and TMT (technology, media and telecom) that underperformed in 2023 will likely improve in 2024, the report said.

With the advent of Generative AI, firms are expanding their portfolios, and CY23 saw 2.7X growth over CY22 in AI-related activity. Between 2023 and 2024, over 6.5 lakh employees are being trained in Gen AI skills.

Over two-third of respondents expect better revenue growth in FY25, driven by factors such as strong deal pipelines leading to project implementation, expansion in GCCs, AI accelerating from proof of concept to production and increasing discretionary spending.

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