It was a year of a mixed bag for the IT industry as it started off on a great note, only to fall into chaos with inflation fears gripping the US and other parts of the world. Companies that had hired a large number of people during the preceding pandemic years had to lay off thousands of professionals across the board.
But on a positive note, the industry saw a growth of 15.5%, the highest since 2011, to reach revenues of $227 billion. Of that, $30 billion is the incremental revenue. The share of digital in total revenues stands at 30-32%, with at least 30% of the employees or every one in three IT professionals being proficient in digital technologies. This stamped the country’s authority as a global workforce hub.
The sector adopted the formula of digital innovation to come on top of the game. XaaS and platform stations accelerated the rate of tech adoption.
The digital segment saw a growth of 25% year on year, with $13 billion being the incremental revenue. Exports clocked $178 billion, with services constituting 51%. A massive 66% of all deals struck were in the digital segment. India had a 59% share of the global outsourcing market, remaining at the top at No. 1.
The startup scenario continued to look bright, with many scaling up their operations. Companies focused on operational excellence to manage the pressure on margins, while the e-commerce firms saw larger and deeper adoption of the online and offline model (O+O). In all, 2,500 startups were added last year, taking the total to a whopping 25,000.
End-user enterprises that were helped by the IT sector to manage operations during the difficult two years of Covid continued to expand their online reach by forming collaborations with distribution networks and by adopting newer and more efficient technologies.
The entire IT sector, including the e-commerce segment, contributed 9% to the country’s Gross Domestic Product.
Post-Covid Rise Effects
For the first time, the IT industry also saw the direct workforce reaching the magical figure of 5 million with 4,45,000 employees added. As the Covid grip started easing, companies wanted to bring employees back to the office. However, keeping the welfare of their staff in mind, the IT sector quickly adopted the hybrid model, where employees had to go to the office only a few days a week.
Nearly 70% of companies are looking at the hybrid work model for their employees. Now, screening, recruitment, onboarding and training have become the norm for the industry.
Despite fears of recession, especially in the US, the Indian IT industry has managed to weather the storm better when compared to other parts of the world. In the continuing success story, most IT companies, especially the top three – TCS, Infosys and HCL Technologies, have had zero debt on their books.
It was a year of big changes and big technology, keeping with the momentum built over the years.