India’s Tech Industry – A True Beacon Of Resilience

The enormity of disruptions faced by the global technology industry in the past few years are well known. But it was technology that equipped businesses to brave the challenges, push the envelope and thrive. The Indian technology industry not only showed tremendous resilience but was quick to improvise and innovate, optimising human potential.

India’s tech industry witnessed a breakthrough in 2022 as technology empowered businesses to accelerate their journey of becoming agile, future-ready, and resilient. Investments in cloud, security, artificial intelligence (AI) and automation will continue to increase. According to an IDC report, India’s IT spending growth will remain resilient despite global headwinds. IT spending by Indian companies has been estimated to grow 13.8 per cent in 2022 and the expenditure on digital transformation has likely risen by 19.6 per cent during the year.

The technology industry in India is also leading sustainability transitions. Tech companies are leveraging green technology and human capabilities to tackle the Environment, Social and Governance (ESG) challenges. Not just that, they are helping other sectors reach their net-zero goals with the promise of a sustainable future.

Growth outlook

The pandemic has reset the way we do businesses. Rapid technological changes and a digital-first approach have marked the beginning of a solid growth trajectory for the industry. This is set to gain momentum in 2023. A NASSCOM report showed that FY2023 growth estimates for India’s tech industry reflect the optimism of FY2022 with 70 per cent technology CEOs indicating FY2023 tech spend to be in line with FY2022.

Tech startups have also contributed to the industry’s growth. India became the third-largest tech startup hub in the world in 2022. New-age technologies such as AI, 5G, machine learning (ML), Internet of Things (IoT), blockchain technology, and more will continue to create opportunities for tech startups. However, innovation will be key to survival.

The last mile & tech

Governments across the world understand that technology is imperative to collective growth. India too has evolved and embraced technological advances that improve work efficiency and reduce unnecessary costs. This has also helped the government invest more in people-centric policies and enhance citizen experience till the last mile.

The Unified Payments Interface (UPI) is a valuable example of digital transformation. By creating a new network beyond the traditional banking system, technology has enabled hassle-free consumer-to-consumer transaction, reduced human intervention, and reshaped the payments landscape. India is ready for its next big leap, with the government now offering to export its UPI technology to 30 countries.

The CoWin platform is another instance of how the government has embedded technology to ensure transparency and maximum information sharing. The platform became the digital backbone of India’s massive vaccination campaign and a one-stop aggregator for all information and solutions pertaining to the pandemic.

The roadmap for the future of work

India’s technology companies are constantly reinventing their culture and leadership for a sustainable and smart hybrid workplace. In recent Gartner surveys, CEOs rated culture as their biggest concern when it came to in-office and work-from-home policies and HR leaders found that cultural shift was the most challenging aspect of the hybrid strategy.

Future workplaces will be characterised by people-first and an equitable approach. Tech companies will continue to make strides in aligning employee goals with larger enterprise ambitions. Creation of opportunities for internal mobility and growth will be crucial to employee retention and building organisational credibility.

A diverse workforce with a sense of inclusion has greater potential to drive success. Tech companies are going beyond the traditional definition of diversity and inclusion, and actively working towards bringing gig workers, retired professionals, and returning mothers into the mainstream workforce. By adopting a remote work model, tech companies are also helping women, who are technically qualified but challenged by mobility to work professionally.

New-age Technology – one giant leap for humankind

Emerging technologies including AI, ML, IoT, 5G and edge computing are laying the foundation for India’s digital future. As businesses focus on balancing efficiency, profitability and sustainability, new-age technologies will help deliver innovative products and services.

For instance, the manufacturing industry, which has been facing immense competition and is pressurised by shrinking margins, can truly benefit from 5G networks by building smart factories. 5G will also support automation, AI, augmented reality for troubleshooting, and boost IoT capabilities for the manufacturing sector. 5G and edge computing will fast-track innovation in healthcare and life sciences by converging the physical and digital and creating

personalised experiences based on real-time data. Quantum technologies and synthetic biology will help faster drug discovery.

New-age technologies will also back the metaverse, which envisages to create a new market, business, and employment opportunities. A recent Deloitte report showed that digital payments and gaming are two key sectors that will facilitate India’s entry into the metaverse.

With the expansion of the digital payments network, comes higher security risks. Technology companies play a vital role in providing next-generation blockchain architecture that enhances security, speed, and operational efficiency for financial institutions in several business areas such as payments, asset management, loyalty, and loans. Recently, the Reserve Bank of India launched blockchain-based digital rupee or Central Bank Digital Currency (CBDC) with the aim to reduce cash transactions and become a cashless economy.

The tech industry will remain at the helm of transformations across industries. And the power and resilience of technology will help India realise its dream of a truly digital, inclusive, and sustainable economy.