India remains the top choice for companies looking to outsource their digital services.

India Remains Top Choice for Digital Services Outsourcing

A recent report by Nasscom and Avasant reveals that even amidst global economic challenges, India remains a top pick for businesses seeking to outsource and advance their digital services.

In 2023, many companies opted to "nearshore" their digital services work to India, meaning they relocated their operations closer, specifically to India. This move was favored by nearly half of high-tech and travel companies, as well as over 40% of telecom, manufacturing, and construction firms. This underscores India's growing significance as a global center for digital services outsourcing.

The report also points out a positive trend in traditional sectors like energy, utilities, construction, and engineering, which are increasingly bolstering their digital talent pool, indicating a broader commitment to enhancing their digital capabilities.

Rise of Generative AI (GenAI)

The report highlights Generative AI (GenAI) as a major technology trend in 2023. Approximately 70% of businesses are now specifically investing in GenAI, leading to a notable surge in digital service contracts across diverse sectors, including finance, high-tech, manufacturing, telecom, media, and energy.

Industry experts view this trend as a strategic maneuver for businesses to accelerate their adoption of digital technologies, recognizing the critical importance of artificial intelligence (AI) skills in today's landscape.

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