India emerges as global digital services destination of choice in era of GenAI: Report

Generative AI expected to receive more investment in 2024

New Delhi:

Amid global economic headwinds, India remains the top outsourcing destination for businesses aiming to build and expand their digital services portfolio, a new report showed on Monday.

Some 45% of high-tech, travel and transportation companies and 41-43% of telecom, discrete manufacturing and construction companies have chosen to “nearshore” India in 2023, underscoring the country’s growing attractiveness as a global hub. Digital services outsourcing, according to a report released by Nasscom in partnership with Avasant.

Traditional industries such as energy and utilities and construction and engineering have seen significant growth in their digital talent base, reflecting a broad commitment across industries to deepen digital capabilities.

The report stated that GenAI became a prominent technology last year, attracting targeted investment from nearly 70% of global companies.

This has led to industries such as BFSI, high technology, discrete manufacturing, telecommunications, media and entertainment, and energy, utilities and alternatives significantly expanding their digital services contracts.

Sangeeta Gupta, senior vice president and chief strategy officer at Nasscom, said: “In an era when artificial intelligence and skills are critical, it provides a strategic framework for enterprises looking to accelerate digital adoption.”

Generative AI is expected to receive increased investment in 2024, with 73% of companies allocating budgets to generative AI in 2023 believing increased spending is critical, especially in talent development.

The report shows that 71% of companies spent more than 20% of their technology spending on digitalization last year.

In addition, nearly 90% of companies plan to increase investment in key digital technology areas this year, including artificial intelligence/machine learning (AI/ML), big data analytics, cloud computing, cybersecurity and intelligent automation.

“The digital landscape is undergoing profound transformation, and enterprises are at the forefront of this transformation. The commitment to digital maturity is no longer about simplifying costs, but about boldly shaping the future.” said Akshay Khanna, managing partner at Avasant.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)