Companies are expected to increase spending on AI, data analytics and cybersecurity in India, as per industry body NASSCOM's report.
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New Delhi: India remains the top choice for enterprises looking to expand digital services portfolio and companies are expected to increase spending on AI, data analytics and cybersecurity, industry body NASSCOM said in a report on Monday.
The report "Digital Enterprise Maturity 5.0: Digital Readiness in the Era of AI" is based on a survey of 550 enterprises across 11 major sectors and seven major geographical regions.
The survey found that 71 per cent of enterprises in India spent over 20 per cent of their tech spends on digital in 2023.
"Nearly 90 per cent of companies have signalled plans to boost investments 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 said.
The report further said the focus is expected to lean more towards cybersecurity by the first half of 2025, as a response to increased adoption of generative AI (gen AI), which has emerged as a prominent technology in 2023.
The advancements in gen AI propelled an increased emphasis on digital talent, NASSCOM said, with 83 per cent of enterprises reporting that over 6 per cent of their total workforce was dedicated to digital roles.
The report noted that sectors like BFSI (banking, financial services, and insurance), high-tech, discrete manufacturing, telecom, media and entertainment, as well as energy, utilities, and alternatives are expanding their digital services contracts.
It said India continues to be the preferred outsourcing destination for businesses aiming to build and expand their digital services portfolio, with over "50 per cent of companies in the travel and transportation, telecom, media and entertainment, and construction and engineering sectors choosing it for their outsourcing needs".
At least 47-49 per cent of firms in sectors like telecom, media and entertainment, discrete manufacturing, and energy and utilities outsourced digital services work to their own capability centres in India, it said.