India’s IT Industry Crosses $200 Bn Revenue Mark in FY-2022: Nasscom
The Indian IT industry crossed the $200 billion revenue mark, reaching $227 billion revenue in FY22, witnessing a $30 billion incremental revenue in the year with an overall growth rate of 15.5% – the highest ever growth since 2011, according to the recent Nasscom Strategic Review. The industry body predicted that the IT sector can achieve the ambitious target of being a $350 billion by FY26 growing at a rate of 11-14%.
The industry added 450,000 new hires in FY22, with the country emerging as a global hub for digital talent with over 5 million tech workforce. With 1 out of 3 employees already digitally skilled, the digital tech talent pool is at 1.6 million, growing at a CAGR of 25%.
With a massive focus on reskilling and upskilling, the Indian tech industry re-skilled approximately 280,000 employees in FY22. With over 36% of women employees, the Indian tech industry is one of the largest private-sector women employer in India with over 1.8 million women in the workforce.
Rekha M Menon, chairperson, Nasscom said, “Fiscal 2022 has been a breakthrough year for the Indian technology industry. We’ve posted solid, broad-based growth, massively increased jobs, and are proud that we continue to be an engine for India’s economic growth, and a beacon for inclusion and diversity. We are excited about the opportunities in the Techade as we enter an era of exponential transformation and technology becomes indispensable to progress. We remain committed to catalysing the trillion-dollar digital economy with our focus on talent, technology, collaboration, and innovation.”
Despite headwinds like geopolitics, macroeconomic fluctuations, supply chain disruptions, and the after-effects of the pandemic, the industry will continue to display grit, resilience and agility, said Nasscom.
According to the Nasscom Tech CEO Survey 2022, over 70% CXOs believe that FY23 is poised to be another growth year for the industry. The current demand trends on technology spending and economic growth point to a positive outlook on technology spending and hiring.
The Indian technology industry has emerged as a digital tech hotbed with 30-32% revenues emanating from the digital stream and over 66% of deals largely digital. The industry also undertook over 290 M&As with their primary focus as digital.
India continues to be the third largest start-up hub in the world with over 25,000+ tech start-ups and witnessing 42 new unicorns and 11 IPOs in the year 2021. Over 2250 tech start-ups were founded in 2021 and a total highest-ever funding of $24 billion was raised in 2021. The industry also witnessed maturity in the software products segment with the presence of over 2000 software product companies and 1000 SaaS companies in India. Indian SaaS-based companies also secured $4.5 billion funding in 2021.
With a massive focus on IP Creation, India ranked 46th in Global Innovation Index. The tech industry filed over 138K tech patents in India during 2015-2021 and increased its investments in R&D by nearly 1.5X across the spectrum. Indian Tech industry has emerged as the leader in seamlessly transforming to hybrid work models. With over 70% of tech organizations looking at adopting hybrid work models, industry has set global standards on Virtual screening, recruitment, on-boarding, and training making it a business-as-usual norm.
Debjani Ghosh, president, Nasscom, said, “2021 has been a great run for the year with our combined revenue crossing $200 billion. While exports did play a large part in this growth, domestic market emerged as a great propeller, nearing a total of $50 billion owing to India’s tech adoption with public digital platforms like Aadhaar, UPI and CoWIN playing a large part in delivering citizen services. FY-2022 will be a milestone growth year for the industry.”
According to the industry body, innovation and Partnerships across the ecosystem will accelerate digital capabilities leading to higher investment in R&D, building products and platforms. While Cloud, Cybersecurity, Data and AI will continue to be top tech priorities for the industry, Centres of Excellence will be set up in emerging areas like quantum technologies.
Positive revenue growth will be driven by strong deal pipelines with the industry witnessing larger proportion of smaller deals for niche differentiated products, enhanced digital demand and high tech spends in Pharma/Healthcare, BFSI, Manufacturing, Retail/eCommerce verticals in 2022.
Further the Nasscom noted that the IT industry will continue with its ‘Employee First’ approach, aggressively working on priorities like attracting and retaining talent, ramping up hiring for skill and scale especially for digital, campus and non-engineering talent. Hybrid models of working will continue to stay depending on individual company policies and job role requirements.