Indian IT Sector Is Well Positioned To Ride USD 4 Trillion AI Wave By CIOTechOutlook Team

Indian IT Sector Is Well Positioned To Ride USD 4 Trillion AI Wave

CIOTechOutlook Team | Thursday, 21 September 2023, 02:44 IST

India's IT sector is in a great position to capitalize on the $4 trillion opportunity presented by the worldwide market for generative artificial intelligence (genAI). However, it will need to undertake significant strategic modifications. According to the research, GenAI will have an annual economic worth of $2.6-4.4 trillion. 75% of this will be concentrated in sectors where technology service providers have core service lines, such as software engineering, customer operations, product and R&D, and sales and marketing.

“The Indian IT sector is sitting on a goldmine,” said Ankit Bose, head of AI, Nasscom. “It's just about how deep we dig.”

The addressable market for the IT sector is set to increase, as the development of over 100 new genAI use cases could bring an additional 15-20% growth, as providers reimagine existing offerings or come up with new ones over the next five years, as per economic times.

According to Bose, technology service providers should develop capabilities to improve delivery productivity, sales excellence, and total SG&A, as well as enhance their current account. In the next 2-3 years, GenAI is expected to increase delivery productivity by up to 30%. Gains are also projected across the sales and marketing value chains, from lead generation to faster sales strategy development.

Over the next three years, productivity in F&A, legal, and HR tasks is predicted to increase by 40%. According to Ankur Puri, partner at McKinsey & Company, enterprises leveraging data to use genAI creates potential for Indian tech service providers. “Someone needs to manage all the data and maintain the technology stack in which risk guardrails have to be built…No one else is better positioned than them to do this.”

However, he believes that creativity, experimentation, and the discovery of new use cases will be critical.