As per the recently published Strategic Review Report 2022 by the NASSCOM (National Association of Software and Services Companies), the Indian technology market has surpassed the $200 billion revenue mark in the financial year 2022. With this, it has touched a record of $227 billion in revenue.
The major drivers behind this growth were the increased cloud adoption post the pandemic and increasing dependence on digital infrastructure. The tech industry was able to clock in 1.2 times growth in the domestic revenues over the financial year 2019 to about $50 billion.
“This has been a watershed year for the technology industry thanks to the persistent focus on customer centricity… The industry has added $100 billion in the last 10 years; the first $100 billion took 30 years,” said Debjani Ghosh, President, NASSCOM.
“FY2022 will be a milestone growth year for the industry. NASSCOM will continue to focus on priorities and play its role in catalyzing the trillion-dollar digital economy through accelerated industry growth and building thought leadership. Leading the industry transformation narrative of Think Digital Think India, the industry will maximize tech innovation and impact and build on future-readiness with the Digital Next priority of the industry.” – she added further.
A phenomenal growth rate of 15%
During the past year, the Indian tech industry secured $30 billion as incremental revenues with a phenomenal growth rate of 15.5% – the fastest since the year 2011.
Talking about the sub-sectors, the industry recorded double-digit growth. Exports too increased by 17.2% to touch the revenue of $178 billion.
Towards a Digital Talent Hub
In terms of talent and skills acquisition, the Indian tech industry is emerging as the global hub for digital talent – and recorded the highest ever hiring of more than five million tech workers. The digital talent stood at 1.6 million – with one out of three employees already skilled in digital technologies.
This is expected to further increase with a CAGR of 25%.
The report further highlighted that the tech industry is majorly focusing on reskilling and upskilling – with data suggesting the reskilling of around 280,000 employees in the FY22.
Among the total workforce employed in the Indian software services industry, 1.8 million are women – accounting for 36% of the total workforce. With this, the software services sector is one of the largest private-sector employers for women in India.
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 catalyzing the trillion-dollar digital economy with our focus on talent, technology, collaboration, and innovation.”
The report also highlighted the growth of startups in India. With over 25,000 tech startups, India continues to be the third-largest startup hub in the world. In 2021, India witnessed 42 new unicorns and 11 IPOs (initial public offerings) with total highest-ever funding raised of $24 billion.
The software products segment recorded the presence of 2,000+ software products and 1,000 SaaS companies.
The industry outlook for 2022-23
The report also highlighted the key trends and growth imperatives to look forward to in 2022. This includes a strong focus on talents and skills; ease of doing business; R&D and innovation; emerging tech regulations; and building a global brand.
According to the NASSCOM Tech CEO Survey 2022, more than 70% CXOs believe that FY2023 is set to be another growth year for the industry. The current trends in FY21-22 point towards greater adoption of technology going forward and the creation of digital talent.
The industry further aims to touch $350 billion revenues within the next 4 years i.e., by FY26 at an annual growth rate of 11-14%, as per the report.
Cloud, cybersecurity, artificial intelligence, and data will be the top priorities for the tech industry. The tech industry will continue focusing on creating, hiring, and retaining talent – with an ‘employee-first’ approach. The hybrid model of working will continue to be the norm.