Published by Nasscom in collaboration with BCG, the research “AI-Powered Tech Services: A Roadmap for Future Ready Firms; AI & GenAI’s Role in Turbocharging the Industry” stated that India’s AI market is projected to expand at a compound annual growth rate of 25–35% and reach 17 billion USD by 2027. On the fringes of the Nasscom Technology & Leadership Forum 2024, the report was issued.
The research claims that a number of factors, including rising enterprise technology spending, India’s expanding pool of AI expertise, and a notable increase in AI investments, are driving the surge. According to the analysis, worldwide AI investments have grown at a 24% CAGR since 2019, and by 2023, close to 83 billion USD will have been invested. The paper claims that substantial expenditures were made in ML platforms and algorithms, as well as data analytics and generative AI.
Notably, the survey states that supply chain, digital content, and data analytics account for about 93% of expenditures made by Indian tech services and made-in-India product companies. According to the research, technology service providers are expanding their offerings beyond standard IT services by developing a wide range of cutting-edge AI-powered services and solutions in response to the spike in enterprise tech spending. According to the research, it involves the creation of tailored AI apps, data analytics solutions, automation tools, and proprietary and generative AI platforms for specific industry verticals like healthcare, banking & finance, and retail.
With 420,000 workers performing AI-related jobs, India has the second-highest installed skill base, according to the survey. With three times more talent with AI skills than other nations, India also has the highest skills penetration rate. According to the report, the nation is among the top five countries in the world with a 14-fold increase in AI-skilled persons over the last seven years.
According to the Nasscom-BCG report, as AI investments rise quickly, so too will be the demand for AI talent in India, which is predicted to grow at a 15% CAGR through 2027. It also noted that over the previous 12 months, the tech sector in India has already seen a rise in AI/ML jobs of over 15%, with positions such as AI engineers rising at a rate of 67% annually.
Leading companies have made significant investments in reskilling and upskilling their staff in AI and associated technologies as they recognise the importance of human capital in the AI journey. Some corporations have committed USD 1 billion to upskilling over the next three years.
Debjani Ghosh, president of Nasscom, stated, “Indian tech companies, with the advent of Generative AI, are expanding their portfolios beyond traditional IT and business process management to include AI-driven analytics, intelligent automation, and personalised customer interactions”.
She went on to say that these businesses are doing more than just implementing AI; they are also reinventing their service offerings, adding value for their customers, and establishing new benchmarks for the sector.
A fundamental shift towards a human-centered strategy that prioritises transparency and human oversight, as well as large-scale investments in AI skilling, secure and ethical AI development practises, governance frameworks, and human oversight are all need to accelerate this journey, according to Ghosh.
