India top choice for digital pursuits; companies ramp up investments in AI, big data, cybersecurity: NASSCOM

Industry body Nasscom said in a report on Monday that India remains the top choice for businesses looking to expand their digital services portfolio, with businesses expected to increase spending on artificial intelligence, data analytics and cybersecurity.

The “Digital Enterprise Maturity 5.0: Digital Readiness in the Artificial Intelligence Era” report is based on a survey of 550 companies in 11 major industries and 7 major geographical regions.

The survey found that 71% of Indian companies will spend more than 20% of their technology spending on digitalization by 2023.

“Nearly 90% of companies have expressed plans to increase investment in key digital technology areas in 2024, including artificial intelligence (AI)/machine learning (AI/ML), big data analytics, cloud computing, cybersecurity and intelligent automation. “it says.

The report further said that the focus is expected to shift more towards cybersecurity by the first half of 2025, in response to the increasing adoption of generative artificial intelligence (gen AI), which is expected to grow in 2023. has become a prominent technology.

According to nasscom, the advancement of the new generation of artificial intelligence has driven the increasing emphasis on digital talents, with 83% of companies stating that more than 6% of their total employees are dedicated to digital work.

The report states that industries such as BFSI (banking, financial services and insurance), high technology, discrete manufacturing, telecommunications, media and entertainment, and energy, utilities and alternatives are expanding their digital services contracts.

The report said that India remains the preferred outsourcing destination for businesses aiming to build and expand their digital services portfolio, with “more than 50% of companies in the travel and transportation, telecommunications, media and entertainment, and construction and engineering industries choosing India” for their outsourcing needs. .

At least 47-49% of companies in industries such as telecommunications, media and entertainment, discrete manufacturing, energy and utilities outsource digital services to their own capability centers in India, the report said.

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