As per Rajesh Nambiar, the newly appointed chairperson of
IT industry group Nasscom, the $245 billion Indian IT industry is experiencing some green shoots even as global macroeconomic concerns continue to put pressure on technology spending.
“Clearly there is a bit of a slowdown in discretionary spending from the customers of all our organisations,” according to economic times.
He cited a healthy deal pipeline in the fiscal first quarter as well as increased investments in Generative Artificial Intelligence (GenAI) as promising indicators. These may not compensate for the overall downturn in the tech sector, but it will likely take a few more quarters before the industry enters a "renewed growth phase," according to Nambiar, who is also the chairman and managing director of Cognizant India.
Business process management and engineering, research and development (ER&D) have witnessed robust expansion, as has the number of global competence centres (GCC) in the country.
Nambiar believes that government backing will be vital in the future "GenAI revolution" in order for India to maintain its lead in the GenAI race. Companies interested in leveraging the technology, including India's over 60 active
GenAI firms, suffer a dearth of high-quality and ready-to-use training datasets, as well as a lack of high-performance compute capabilities at scale, he adds.
“We are in discussions with the government to ensure that we are able to come up with a framework and policies which will actually support some of this as we move forward,” he said.
At the same time, he argued, AI governance must be "balanced," addressing user privacy, data protection, and disinformation without limiting innovation. The Digital Personal Data Protection Act was an effective means to establish some of these safeguards, but more time and understanding are required before additional AI legislation.
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