The IT industry of India has a growth to $226 billion in 2022, making it’s best in a decade at 15.5%.
The Indian IT exports are set to grow by 9.4% to $194 billion on a reported currency basis, and would have grown by 11.4% if not for the currency impact.
In 2023, India’s technology sector growth slightly slowed down to 8.4% to $245 billion due to global challenges such as the Russian aggression against Ukraine.
Geopolitical worries are leading to delays in decision making at companies to make IT contracts and there is also a demand contraction in some markets.
There are a strong demand with the top 5 companies reporting a deal case of $18 billion, a 10% growth in overall client base reported by select tech companies and companies’ ability to increase utilisation by 6-7%, which will help profits.
Employability gap has its roots in the education system, where the industry is not getting fresh graduates with the right skill sets and has to invest a lot of resources to make them ready to serve client needs.
The increase in employees is lower than the 4.5 lakh jobs added in 2022, but the last two years were an exception.
Generative artificial intelligence platforms impact on jobs will be limited to doing away with routine work done by employees, but stressed that AI will be a creator of jobs.
India presently takes care of 57-58% of the global sourcing requirements and the tech sector is all set to be $500 billion in size by 2030.
The domestic revenues are set to jump by a surprising 13% to Rs 4.12 lakh crore on continued investments by government and local governments enterprises.
The situation in IT sector had turned into a big trouble in the recent past because of the high demand for talent on the back of handsome revenue growth. It has downed to 21.8% as of December quarter as against 25.7% at the end of June quarter.