The Indian IT sector is expected to grow by over 15 per cent in FY22, the the highest since 2011, according to the Nasscom Strategic Review 2022. The report also says that the sector will touch $227 billion in revenues in FY22, a $30-billion incremental revenue this year as compared to an estimated revenue of $194 billion in FY21.

The IT industry has shown over 2X growth in revenue from its pre-Covid (FY19) numbers.

Digital streams have become the hotbed for attracting this growth, contributing around 30-32 per cent of the estimated revenue, with incremental recorded revenue of $13 billion for the segment. Over 66 per cent of the deals for the IT sector were largely digital in FY22. There were over 290 M&As this year, with primary focus on digital offerings growth.

E-commerce grew around 39 per cent to reach $79 billion in 2021-22.

Export target

Exports (including hardware) for the financial year will touch $178 billion, claiming nearly 51 per cent share in services exports across sectors. This is a 17.88 per cent growth on a year-on-year (y-o-y) basis; exports stood at $151 billion in FY21.

“In 2019, we had coined the term ‘Techade’ to define a decade where technology will shift from being an enabler of business and government to becoming a foundation of how we live, work and play. The pandemic has accelerated Techade, and today, technology is the single biggest driver of change. We have entered a new era of exponential transformation and this will create massive opportunities, both for our industry and also the country. We are all optimistic about the future and remain committed to catalyse the trillion-dollar digital economy with focus on talent, technology, innovation and collaboration,” Rekha M Menon, Chairperson, Nasscom, said during the launch of the report.

Talent growth

Despite high attrition rates in the industry, to the tune of 20-25 per cent, the IT sector reported its highest ever estimated employee addition, adding around 4,50,000 new hires this fiscal. Of this, 2 lakh were women. Around 36 per cent of the total talent pool of 5 million working in the IT sector is women, crossing 1.8 million.

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Debjani Ghosh, President, Nasscom, added that the ongoing talent shortage will be addressed by increasing fresher intake in the industry and expanding focus to tier-2 and -3 cities, wherein various IT companies are taking several measures to offer special training and skilling programmes to students in college level.

Major IT companies are also exploring tier-2 cities, including Indore, Pune, Ahmedabad, Kolkata among others, to set up operations.

Ashwini Vaishnaw, Minister of Electronics and Information Technology, said, “Congratulations on touching $200 million and it’s time to achieve the next target of $300 billion. IT industry is known for providing quality employment and this year, it has added by 4,50,000, which is fabulous. I hear each and every participant talk about expanding to tier-2 and -3 cities. We as a government believe in inclusive growth and it’s a major philosophy for us.”

“Despite the onslaught of Covid, both the industry and the government worked hand-in-hand — be it the IT ministry or the telecom ministry. We look at it as one system. Our resilience has been proven and it will give a lot more confidence to the global economy about India’s IT industry,” he added.

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