The Indian tech industry is poised to add 1.25 lakh new jobs in the 2024-25 financial year, bringing the total workforce to 58 lakh. This growth, highlighted in the National Association of Software and Service Companies (Nasscom) Annual Strategic Review report released on February 24, signals a recovery from a slowdown that lasted over 1.5 years, triggered by macroeconomic challenges in key markets like the United States and Europe.
Indian Tech Industry Set for Strong Growth Driven by AI and GCCs
Revenue projections are also strong, with the industry set to reach $300 billion by the end of FY26, representing a 5.1% growth in FY25. By the end of FY25, industry revenue is expected to surpass $282.6 billion. The report notes that hardware and software together contributed $13.8 billion in incremental revenue.
A significant driver of this growth is the rise of artificial intelligence (AI) and the evolving role of Global Capability Centres (GCCs), both of which are reshaping industry dynamics. Sindhu Gangadharan, Nasscom’s Chairperson, highlighted the impact of AI advancements and the growing importance of GCCs in enabling higher value-added services across various sectors. Digital engineering, in particular, is expanding into industries like banking, financial services, insurance (BFSI), healthcare, and retail, with two-thirds of major deals focused on this shift.
India’s Tech Industry Shifts Toward High-Value Services with Focus on AI and GCCs
Job growth is expected to slow slightly, with 60,000 jobs forecast for FY24, compared to 2.7 lakh in FY23. However, the number of GCCs has risen to over 1,750 in 2024, underscoring the industry’s shift toward high-value services and product engineering. Nasscom’s report also shows a balanced export revenue split between global MNCs (including GCCs) and Indian service providers.
As companies like Wipro align with Nasscom’s vision, focusing on emerging technologies like AI, cloud computing, and cybersecurity, India’s tech industry is on track to solidify its global leadership while adapting to an increasingly complex economic landscape.
