India Retains Dominance as Global Digital Services Hub

New Delhi: Amidst global economic challenges, India remains the top choice for businesses looking to expand their digital services, as per a recent report released on Monday. The report, by Nasscom in partnership with Avasant, highlights India’s increasing appeal as a hub for digital outsourcing. In 2023, around 45% of high-tech and travel companies, as well as 41-43% of telecom, manufacturing, and construction firms, chose to “nearshore” to India.

Various sectors, including energy, utilities, construction, and engineering, witnessed significant growth in their digital talent pools, indicating a widespread commitment to enhancing digital capabilities across industries.

The report also identifies GenAI as a leading technology, attracting investment from nearly 70% of global enterprises last year.

GenAI is expected to continue receiving substantial investment in 2024, with 73% of firms planning to increase spending, particularly on talent development. Additionally, the report reveals that 71% of enterprises allocated over 20% of their tech budgets to digital initiatives last year. Looking ahead, almost 90% of firms intend to ramp up investments in key digital technologies such as AI/ML, big data analytics, cloud computing, cybersecurity, and intelligent automation.