India added greater than 1,600 tech startups in 2020, making it the third-largest tech startup hub on the earth, business physique Nasscom mentioned in its Strategic Assessment 2021 titled ‘New World: The Future is Digital’.
That is the very best addition in three years and takes the entire variety of tech startups to 12,500, together with 12 new unicorns.
The general Indian expertise sector grew 2.3% year-on-year (y-o-y) on the again of speedy acceleration in digital transformation and tech adoption, although international output is estimated to have shrunk by 3.2% on account of the fallout of the covid-19 pandemic.
Indian tech contributed about 8% relative share to the nationwide gross home product (GDP), regardless of headwinds in 2020, with 52% relative share in providers exports and 50% share in whole international direct funding (FDI) primarily based on inflows from April to September 2020.
Regardless of the downturn, Indian tech business continues to be a internet hirer with important give attention to digital upskilling, Nasscom mentioned. The business is anticipated so as to add greater than 138,000 internet new hires in FY2020-21, taking its whole worker base to 4.47 million within the monetary 12 months. The digital expertise pool is anticipated to cross 1.17 million, rising at 32% over the past 12 months.
As a lot as 95% of chief government officers (CEOs) anticipate 2021 hiring to be greater than that in 2020, in line with a CEO survey by Nasscom. Additional, 67% CEOs imagine that the Indian expertise business will develop considerably increased than it did in 2020.
Investing in digital continues to rise as an crucial for the business, with organizations constructing their capabilities and aligning enterprise fashions to digital practices. Digital contributed 28-30% of the entire revenues of the business.
Home digital adoption intensified in 2020, in sync with the federal government’s push for Atmanirbhar Bharat or self-reliant India. The Indian home market, pushed by hardware-led demand, continued to indicate resilience, rising at 3.4% within the 12 months. With an elevated give attention to innovation, greater than 115,000 tech patents have been filed by corporations in India within the final 5 years.
“Digital transformation is the topmost precedence for international firms and in a extremely related world that may stay largely contactless for an prolonged interval, there are shifts in enterprise fashions, buyer expertise, operations, and worker expertise,” mentioned U.B. Pravin Rao, chairman, Nasscom.
Enterprises are re-balancing their expertise spends to prioritize digitization. The business noticed an general shift of 10% in outcome-based pricing. Offshore witnessed greater than a 4% shift in 2020 and the attrition charge dropped by 50% in H2 2020 in comparison with H1 2020. The business witnessed 146 merger and acquisition (M&A) offers in 2020, 90% of which have been digitally targeted.
Cloud adoption in corporations rose 80% throughout H1 FY2021 in contrast with H2 FY2020. Additional, Continental Europe and Asia Pacific emerged as one of many strongest development geographies in FY2021. Banking, monetary providers and insurance coverage (BFSI) and healthcare have been key development verticals throughout the 12 months.
“As we have a look at 2021, whereas there are positives on the vaccination entrance and accelerated digitization throughout verticals, the expertise business in India is nicely geared to construct on these traits and proceed its transformation journey on this re-defined techade,” mentioned Debjani Ghosh, president, Nasscom.