India top choice for digital activities; cos to boost AI investments: report
The study found that 71 percent of enterprises in India would spend more than 20 percent of their technology spend on digital by 2023. Photo: Bloomberg
India remains the top choice for companies looking to expand their digital services portfolio and companies are expected to increase their spending on AI, data analytics and cybersecurity, industry body Nasscom said in a report on Monday.
The report, Digital Enterprise Maturity 5.0: Digital Readiness in the Era of AI, is based on a survey of 550 enterprises across 11 major industries and seven major geographic regions.
The study shows that 71 percent of companies in India will spend more than 20 percent of their technology spend on digital by 2023.
“Nearly 90 percent of companies have signaled plans to drive investment in key digital technology areas by 2024, including artificial intelligence (AI)/machine learning (AI/ML), big data analytics, cloud computing, cybersecurity and intelligent automation.” it said.
The report further states that the focus is expected to be more on cybersecurity in the first half of 2025, in response to the increased adoption of generative AI (gen AI), which has emerged as a prominent technology in 2023.
Advances in AI generation led to a greater emphasis on digital talent, Nasscom said. 83 percent of companies reported that more than 6 percent of their total workforce was engaged in digital functions.
The report noted that sectors such as BFSI (banking, financial services and insurance), high-tech, discrete manufacturing, telecoms, media and entertainment, as well as energy, utilities and alternatives are expanding their digital services contracts.
According to the report, India remains the preferred outsourcing destination for companies looking to build and expand their digital services portfolio, with more than “50 percent of companies in the travel and transportation, telecom, media and entertainment, and construction and engineering sectors choosing to outsourcing needs”.
At least 47 to 49 percent of companies in sectors such as telecom, media and entertainment, discrete manufacturing, energy and utilities that outsource digital services operate in their own capacity centers in India, the report said.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)
First print: April 15, 2024 | 6:33 PM IST