In the GenAI age, India is the world’s most popular location for digital services: Report

A recent survey released on Monday revealed that, despite the challenges facing the global economy, companies looking to develop and broaden their offering of digital services continue to choose India as their outsourcing location.

According to a report by Nasscom and Avasant, approximately 45% of high-tech, travel, and transportation companies, along with 41–43% of telecom, discrete manufacturing, and construction firms, chose to “nearshore” to India in 2023. This indicates the nation’s increasing appeal as a global hub for digital service outsourcing.

An industry-wide commitment to strengthening digital skills is seen in the significant rise in the digital talent base of traditional industries like energy and utilities, as well as construction and engineering.

The study claims that last year, approximately 70% of international businesses made targeted investments in GenAI, which made it a major technology.

As a result, a number of industries saw a large expansion in the number of digital services contracts they had, including BFSI, high-tech, discrete manufacturing, telecom, media and entertainment, energy, utilities, and alternatives.

“A strategy framework for firms looking to accelerate digital adoption in a world where skills and artificial intelligence are critical,” said Nasscom Chief Strategy Officer and Senior Vice President Sangeeta Gupta.

2024 will see more investment in generative AI, as 73% of companies that allotted funds for the technology in 2023 felt that investing more was necessary, particularly in the area of talent development.

71% of businesses, according to the research, spent more than 20% of their IT budget on digital last year.

Furthermore, almost 90% of businesses want to increase their spending this year in critical digital technology domains, including artificial intelligence (AI/ML), machine learning, big data analytics, cloud computing, cybersecurity, and intelligent automation.

Businesses are leading the charge in the significant shift of the digital world. According to Akshay Khanna, managing partner of Avasant, “the commitment to digital maturity is no longer just about streamlining costs but about boldly shaping the future.”