India well poised on digitalization journey with consistent growth
On the sidelines of the special edition of the NASSCOM India Leadership Forum, in conjunction with the World Congress on Information Technology, the National Association of Software & Services Companies (NASSCOM) today announced the key trends of the industry performance for the year 2017-18.
As digital technologies reshape businesses, government and consumers, NASSCOM reiterated the need to capture the value and impact across all components of the digital economy in the country. The stated vision to build a trillion dollar digital economy by 2022 would require growth across all sectors, established and new age companies, technology service companies and product companies, consumer internet as well as the increased adoption of digital across enterprise, government and MSME in India.
The year 2017-18 began on a muted note, but driven by a better growth in the second half of the year is expected to clock revenues of USD 167 billion, representing a growth of 7.8% for export revenues and 10% in domestic revenues. E-commerce sector is expected to grow by 17 % in GMV terms.
NASSCOM stated that the industry continues to grow steadily and establish itself as a “Digital Partner” for the world. Key themes for the year included solutions across AI, IoT, RPA, Blockchain and Digital transformation. Indian SaaS companies were also a growth driver with growth in vertical and horizontal SaaS. The year also saw domestic technology services grow at 10%+ driven by enterprise digital adoption and increased focus on customer experience initiatives.
NASSCOM expects that the future of the industry will lie in ‘Digital at Scale’ as global digital spending is growing at 20% annually. India’s digital revenues grew at 30% in FY 2018, demonstrating the base for a solid foundation in digital capabilities built by the sector.
Sharing his views, Mr. Raman Roy, Chairman, NASSCOM, said, “It’s a great milestone for the software and services industry to cross USD 150 billion – tripling in size in less than a decade. The growth of the B2B startup sector also represents a unique opportunity for India to build innovative solutions for India and the world. However what lies ahead is even more exciting. From small digital pilots, to POCs with product players, we are witnessing industrialization of digital as the wave ahead”.
Mr. R Chandrashekhar, President, NASSCOM, said, “While 2017 started on the backdrop of uncertainties across Protectionism, Brexit, slowdown in technology spend decision making, the current outlook is one of cautious optimism. There is still some turbulence and it is not clear how some of the known uncertainties will play out, however FY 2019 is likely to be a better year, based on our current assessment”.
As per the outlook, the industry will further expand its digital footprint, with growth of 7-9% for Technology Services, 10-12% for Domestic Technology and New age digital to grow 1.5-2X of industry growth. Hiring is expected to be similar to FY 2018 with technology jobs in non-technology sectors expected to grow faster. Growth of the Indian economy, rapid technology adoption and progressive policies are key to accelerate job creation in the country.