Indian Technology sector grew 2.3 percent in 2020 at the back of acceleration in digital transformation and tech adoption, says National Association of Software & Services Companies (NASSCOM).
Indian tech contributed ~8 percent relative share to the national GDP, with 52 percent relative share in services exports, and 50 percent share in total FDI (Based on FDI inflows for the period April to September 2020).
The tech industry is expected to add over 138,000 net new hires in FY2020-21, taking total employee base to 4.47 million in FY2020-21. Digital talent pool is expected to cross 1.17 million, growing at 32 percent over last year.
Investing in digital continues to rise as an imperative for the industry, with organisations building their capabilities and aligning business models to digital practices – up to 28 percent-30 percent of the industry revenues was recorded for digital.
The Indian domestic market, driven by hardware led demand continued to show resilience, growing at 3.4 percent in the year. With an increased focus on innovation, India witnessed more than 115,000 tech patents filed by companies in India in the last 5 years.
UB Pravin Rao, chairman of NASSCOM said, “Digital transformation is the topmost priority for global corporations and in a highly connected world that will remain largely contactless for an extended period, there are shifts in business models, customer experience, operations, and employee experience.”
CEO survey for 2021 indicates that almost 70 percent companies expect investment in global technology higher than the previous year.
Enterprises are re-balancing their technology spends to prioritize digitization. The industry saw an overall shift of 10 percent in outcome-based pricing; offshore witnessed more than 4 percent shift in 2020 and attrition rate dropped by 50 percent in H2 2020 compared to H1 2020.
The industry witnessed 146 M&A deals in 2020, 90 percent of which were digitally focused. Companies saw a significant rise of 80 percent in cloud adoption during H1 FY2021 Vs H2 FY2020. Further, Continental Europe, APAC emerged as one of the strongest growth geographies in FY2021. BFSI & Healthcare were key growth verticals during the year.