India’s tech sector eyes growth amidst challenges, banking on AI and Innovation

economictimes.indiatimes.com:

Indian tech sector have been 'challenging', thanks to the lukewarm performance of the country's top-listed tech companies, slower growth rate and lack of near-term visibility. While the global demand environment is muted, we must not ignore the green shoots of growth:

• In Q2 FY2024, the deal pipeline holds $24 billion for the top five publicly listed tech companies in India, akin to the levels in Q4 FY2023. CEOs point to delayed decision-making as the most significant factor slowing growth.
• Segments like business process management and engineering research and development (ER&D) continue to witness healthy growth as the market is expanding with digital capabilities. According to our new report, Seizing the ER&D Advantage: Frontiers for 2030 (bit.ly/3RlVE7o), India's share in the global business ER&D sourcing is projected to increase from $44-45 billion in 2023E to $130-170 billion by FY2030.
• Global capability centres (GCCs) are expanding their services portfolio in India. Over 19 new GCCs have set up operations in the last six months. This has created a distinctive opportunity for India, with numerous global parent organisations increasingly considering their Indian centres as the central hub for GCCs across different countries.
• Generative AI (GenAI) is creating new conversations with customers, and companies are increasingly investing in leveraging these platforms to showcase the art of the possible.
• These developments show that technology's role as a strategic imperative is set to remain paramount, serving as a critical catalyst for business innovation and transformation. However, there are some notable factors:
• Based on the cautionary demand environment, companies are enhancing utilisation and shifting to a more