global market for generative artificial intelligence (genAI) is set to offer, experts said.
However, it will have to make strategic changes in several areas, according to a report by Nasscom and McKinsey & Company.
GenAI will generate an economic value of $2.6-4.4 trillion annually, the report said. Of this, 75% will be concentrated in areas that form core service lines for the technology service providers, including 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.
Tech services providers should build capabilities to optimise delivery productivity, sales excellence and total SG&A, and increase their current account, Bose said.
GenAI is likely to improve delivery productivity by up to 30% in the next 2-3 years. Gains are also expected across sales and marketing value chains, from lead generation to faster sales strategy formulation, the report said.
A 40% bump in productivity is expected in F&A, legal and HR tasks over the next three years.
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