NASSCOM highlights. – The Indian IT industry experienced a growth slowdown in FY23, with an 11.4% increase compared to 17% in FY22. A NASSCOM survey with IT CEOs suggests that growth in FY24 could be similar to or lower than in FY23 (11.4% CC and 9.4% USD).
Furthermore, India’s IT sector added 290K employees in FY23, down from 500K in FY22, as companies focused on improving utilization and supporting margins. Although attrition rates have been on a downward trend for IT firms, they have not yet returned to pre-pandemic levels.
Engineering, Research & Development (ER&D) services outpaced IT services, growing 11.1% in FY23 compared to IT services’ 8.3%. Industry experts consider generative AI an emerging trend, as it is expected to assist engineers rather than replace them. This technology can help reduce barriers to code-writing, boost productivity, and act as a deflationary force for cost optimization through automation.