Approximately 85 per cent of high-tech companies, along with over 70 per cent of those in telecom, media and entertainment, BFSI and energy and utilities sectors, have dedicated more than 20 per cent of their technology budgets to digital advancements.
At least 71 per cent of enterprises have spent over 20 per cent of their tech spends on digital in CY23. Moreover, nearly 90 per cent of companies have signaled plans to boost investments in key digital technology areas in 2024, including AI/machine learning (AI/ML), big data analytics, cloud computing, cybersecurity and intelligent automation, according to Nasscom report.
With the adoption of GenAI set to expand significantly, the focus is anticipated to shift more toward cybersecurity in the next 18 months, by H1CY25. Approximately 85 per cent of high-tech companies, along with over 70 per cent of those in telecom, media and entertainment, BFSI and energy and utilities sectors, have dedicated more than 20 per cent of their technology budgets to digital advancements.
Notably, the sectors witnessing the most significant increases in digital spending allocations from 2022 are energy and utilities, high-tech, retail and telecom, media and entertainment.
Sangeeta Gupta, Sr Vice President and Chief Strategy Officer, Nasscom said, “A strategic framework for businesses seeking to hasten digital adoption in an era where AI and skills are paramount. Prioritising the development of digital talent within organisations is essential to ensure the workforce can effectively leverage AI and other advanced technologies. Moreover, focusing on data mastery to extract actionable insights and informed decision-making is critical.”
GenAI has emerged as a prominent technology in 2023, attracting targeted investment from nearly 70 per cent of global enterprises. This has led to sectors including BFSI, high-tech, discrete manufacturing, telecom, media and entertainment, as well as energy, utilities and alternatives significantly expanding their digital services contracts, the report noted.
Uptick in demand
Further, 68 per cent of global enterprises anticipate an uptick in client demand, while 80 per cent expect revenues to either maintain current levels or increase, even amid pricing pressures. A strategic pivot towards competitive differentiation is projected to be the primary business focus in 2024, superseding the cost management emphasis of 2023. Investment hotspots over the next 12 to 18 months include cybersecurity, AI/machine learning, GeAI, networking technology and automation, largely fueled by the imperative to leverage data more effectively.
GAI is poised to receive heightened investment in 2024, with 73 per cent of firms that allocated budgets to GenAI in 2023 deeming it essential to increase spending, especially in talent development. The top five GenAI-related roles in high demand for 2024 are anticipated to center on model fine-tuning and application, comprising positions such as GenAI developers, prompt engineers, AI model curators and AI content creators, in addition to the pivotal role of chief AI officer, said the report.
