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techsuch May 9, 2021 0 Comments

IT industry to post $194 billion revenue in FY21Led by a strong recovery, the Indian IT industry is set to post $194 billionrevenue in financial year 2021, a 2.3 per cent increase from $190 billionrecorded during the previous fiscal.While exports will contribute $150 billion to the overall revenue, up from$147 billion last year, the domestic IT sector would account for $45 billion($43 billion in FY2020), according to a strategic review by IT industry bodythe National Association of Software and Services Companies (Nasscom).The review – New World: The Future is Virtual – attributed the growth indomestic market, which grew 1.8 times more than exports, to hardware-leddemand.Indian IT industry was the among the first sectors to recover from thepandemic crisis and post-growth, despite headwinds such as a 3.2 per cent dipin technology spends across the world on a 3.5 per cent contraction in theworld GDP, Nasscom President Debjani Ghosh said.“We have emerged more resilient and more relevant from the crisis,” she added.## Industry growthThe resilient growth was led by IT services ($99 billion), business processmanagement ($38 billion), engineering and R&D ($31 billion) and hardware ($16billion) among others. While most of the verticals grew during the year underreview, engineering and R&D posted a negative 0.2 per cent growth.The industry continued to be a net hirer — adding 138,000 new employees,taking the total workforce to 4.47 million. It was also the third largest techstart-up hub in the world with about 12,500 tech start-ups and 1,600 newadditions in 2020, which was the highest in past three years. The industry had12 new Unicorns, while the funding during the second half of 2020 was similarto the first six months of 2019, it said.Nasscom Chairman U.B. Pravin Rao said: “Digital transformation is the top-mostpriority for global corporations and in a highly-connected world that willremain largely contactless for an extended period, there are shifts inbusiness models, customer experience, operations, and employee experience. OurCEO survey for 2021 indicates that almost 70 per cent companies expectinvestment in global technology higher than the previous year.”.“In this hyper-digital economy, trust with the four cornerstones ofcompetence, reliability, integrity, and empathy, will be the single-most-important currency, leading the industry growth towards a better normal,” headded.According to the numbers disclosed by listed companies, the overall dealpipeline for the industry stood at $15 billion.Enterprises are re-balancing their technology spends to prioritisedigitisation. The industry saw an overall shift of 10 per cent in outcome-based pricing; offshore witnessed more than four per cent shift in 2020, andattrition rate dropped by 50 per cent in second-half of 2020, compared to H12020.The industry witnessed 146 M&A deals in 2020, 90 per cent of which weredigitally focused. Companies saw a significant rise of 80 per cent in cloudadoption during H1 FY2021 v/s H2 FY2020. Further, Continental Europe and APACemerged as one of the strongest growth geographies, while BFSI and healthcarewere key growth verticals in FY2021.

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