A Hub for Digital Services Outsourcing
India remains a top destination for global businesses seeking to expand their digital services portfolio, according to a recent study by Nasscom-Avasant. Over half of companies in sectors like travel, transportation, telecom, media, and construction expressed their preference for outsourcing digital services to India.
This trend is further supported by the rise of nearshoring, where companies choose to outsource tasks to nearby countries like India instead of distant offshore locations. Around 45% of high-tech, travel, and transportation companies, along with 41-43% of telecom, manufacturing, and construction firms opted for nearshoring to India in 2023.
The report also highlights a significant increase in investments in digital services by global firms. Around 90% of companies plan to boost investments in key digital technology areas like AI, machine learning, big data analytics, cloud computing, cybersecurity, and intelligent automation in 2024.
With the growing adoption of Generative AI and the increasing focus on cybersecurity, the digital landscape is expected to evolve rapidly. The report suggests that the industry's focus will shift towards cybersecurity by the first half of 2025.
The study also indicates a rise in the number of firms with dedicated digital workforces. In 2023, 83% of enterprises reported that over 6% of their total workforce was dedicated to digital roles, a significant increase from 66% in 2022. This surge is attributed to advancements in Generative AI, which has led to a heightened focus on cloud computing and data-related skills.
Overall, the report paints a positive picture of India's position as a leading hub for digital services outsourcing. With its skilled workforce, robust infrastructure, and government support, India is well-positioned to capitalize on the growing demand for digital solutions in the years to come.