India's Rising Role in Global Digital Services: Insights from Nasscom-Avasant Study

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India's Rising Role in Global Digital Services: Insights from Nasscom-Avasant Study

Team Finance Saathi

16/Apr/2024

Key Points:

Preferred Destination: A recent study by Nasscom-Avasant highlights India's sustained appeal as the top choice for global businesses looking to enhance their digital services portfolio.
Nearshoring Trends: The study reveals a significant uptick in nearshoring to India, with a notable percentage of firms across various sectors opting for this practice.
Digital Investment Surge: The report underscores a robust intention among global firms to increase investments in key digital technology areas, driven by a strategic shift towards prioritizing advanced technologies.

In the ever-evolving landscape of global business, India emerges as a beacon of digital prowess, attracting the attention of enterprises worldwide. A recent study conducted by Nasscom-Avasant sheds light on India's sustained appeal as the preferred destination for companies seeking to bolster their digital services portfolio and harness the power of advanced technologies.

The Preferred Destination for Digital Services

India's reputation as a global hub for digital services remains unwavering, with over half of the companies surveyed expressing a preference for outsourcing digital services to the country. Sectors such as travel and transportation, telecom, media and entertainment, and construction and engineering stand out as key proponents of India's digital capabilities, leveraging its expertise to drive innovation and efficiency in their operations.

The Rise of Nearshoring

A notable trend that emerges from the study is the growing traction of nearshoring to India. In 2023, 41-43% of firms in sectors like telecom, discrete manufacturing, and construction opted for nearshoring practices, signaling a shift towards leveraging nearby countries for outsourcing tasks. This trend underscores India's geographical advantage and its ability to provide cost-effective and high-quality digital services in close proximity to key markets.
Also read : Report Shows 3.6% Growth in Flexi Staffing Industry During December Quarter of FY24

A Surge in Digital Investments

The study paints a picture of optimism and growth, with 90% of respondents indicating their intention to ramp up investments in key digital technology areas in 2024. This surge in digital investment reflects a strategic shift among global firms towards prioritizing technologies such as artificial intelligence, machine learning, big data analytics, cloud computing, cybersecurity, and intelligent automation. These technologies are seen as critical enablers for driving innovation, enhancing operational efficiency, and gaining a competitive edge in today's digital economy.

Fostering Digital Talent for Future Success

As companies embark on their digital transformation journey, the importance of fostering digital talent within organizations cannot be overstated. The report emphasizes the need for a strategic framework to accelerate digital adoption, highlighting the role of upskilling and reskilling initiatives in empowering employees to harness the full potential of advanced technologies. In an era where AI and skills are paramount, investing in talent development emerges as a strategic imperative for businesses looking to thrive in the digital age.

Conclusion:

India's ascent as a global powerhouse in digital services is undeniable, fueled by its technological expertise, skilled workforce, and strategic partnerships with businesses worldwide. As the digital revolution continues to unfold, India's role in shaping the future of global business will only grow stronger. By embracing innovation, fostering digital talent, and leveraging its unique strengths, India is poised to lead the way in driving digital transformation and unlocking new opportunities for growth and prosperity on a global scale.

Also read : Government Backs Vodafone Idea FPO; Finance Secretary Somanathan Emphasizes Importance of Competitio

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India's Rising Role in Global Digital Services: Insights from Nasscom-Avasant Study

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