May 18, 2022
The technology sector contributes 8% of the country’s GDP
India’s Tier-one tech firms are earning multi-billion-dollar contracts and have accounted for more than a third of all managed services contracts issued globally in 2021
Digital expenditure, transformation of pricing structures, and the oncoming midcap IT businesses will be the three significant drivers of the industry’s growth
The sector has employed over 5 million staff in India
Indian tech sector could achieve a US$ 350 billion to US$ 400 billion turnover by FY26, according to Nitin Bhatt, Managing Partner, Erst & Young (EY).
At Microsoft’s Future Ready Industry event, Bhatt stated that India’s technology sector is currently valued at US$ 225 billion and that it remains a crucial pillar of the Indian economy, contributing 8% of GDP and providing employment to over 5 million people.
Tier-one tech firms from the country are earning multibillion-dollar contracts and have accounted for more than a third of all managed services contracts issued globally in 2021. He further mentioned that over the next year, the majority of these businesses expect double-digit growth.
Digital expenditure across industries, the transformation of pricing structures, and the coming of age of midcap IT businesses are three significant drivers of growth in the industry.
He further stated that primary conversation points around digital expenditure include cloud computing, cost reduction, supply chain transformation, data, AI customer experience, and a focus on using trusted technologies to develop security, privacy, compliance, and ethical tech ecosystems. He added that a lot of co-innovation is being sprung among customers in areas like digital twins, robots, and now the metaverse.