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Riding on a rise in digital transformation and tech adoption, the Indian IT industry is set to post $194 billion in revenue in financial year 2021 — a 2.3 per cent increase from the $190 billion recorded in the previous fiscal.
This comes despite the headwinds due to the Covid-19 pandemic and at a time when the global output is estimated to have shrunk by 3.2 per cent, according to a review by the National Association of Software and Services Companies (Nasscom).
However, the growth is much lower compared with the previous two years when the industry grew by 7.7 per cent and 8.1 per cent in FY2020 and FY2019, respectively.
Indian IT industry was one of the first sector to recover from the pandemic crisis and record growth, despite headwinds such as a 3.2 per cent dip in technology spends across the world on a 3.5 per cent contraction in the world GDP, Nasscom President Debjani Ghosh said.
“We have emerged more resilient and more relevant from the crisis,” she added.
While exports will contribute $150 billion to the overall revenue this year, up from $147 billion last year, the domestic IT sector would account for $45 billion ($43 billion in FY2020), Nasscom said in its review, ‘New World: The Future is Virtual’.
The growth was led by IT services ($99 billion), business process management ($38 billion), engineering and R&D ($31 billion) and hardware ($16 billion), with contributions from other verticals.
Headcount addition
The industry continued to be a net hirer, adding 1.38 lakh new employees and taking the total workforce to 4.47 million. It was also the third-largest tech start-up hub in the world with about 12,500 tech start-ups and 1,600 new additions in 2020, the highest in last three years. It had 12 new Unicorns, while the funding during the second half of 2020 was similar to the first six months of 2019, the report said.
“Our CEO survey for 2021 indicates that almost 70 per cent companies expect investment in global technology higher than the previous year,” Nasscom Chairman UB Pravin Rao said.
The overall deal pipeline for the industry stood at $15 billion.
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