Generative AI is poised to receive heightened investment in 2024
Amid the global economic headwinds, India continues to be the preferred outsourcing destination for businesses aiming to build and expand their digital services portfolio, a new report showed on Monday.
About 45 per cent of high-tech and travel and transportation companies, alongside 41-43 per cent of telecom, discrete manufacturing, and construction firms, opted to “nearshore” to India in 2023, underscoring the country's growing appeal as a global hub for digital services outsourcing, according to the report by Nasscom in collaboration with Avasant.
Traditional sectors such as energy and utilities, along with construction and engineering, demonstrated substantial growth in their digital talent base, reflecting a broad-based commitment across industries to deepen their digital capabilities.
According to the report, GenAI emerged as a prominent technology last year, attracting targeted investment from nearly 70 per cent of global enterprises.
This 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.
“A strategic framework for businesses seeking to hasten digital adoption in an era where artificial intelligence and skills are paramount,” said Sangeeta Gupta, Senior Vice President and Chief Strategy Officer at Nasscom.
Generative AI is poised to receive heightened investment in 2024, with 73 per cent of firms that allocated budgets to Gen AI in 2023 deeming it essential to increase spending, especially in talent development.
According to the report, 71 per cent of enterprises spent over 20 per cent of their tech spend on digital last year.
Moreover, nearly 90 per cent of firms plan to boost investments in key digital technology areas this year, including AI/machine learning (AI/ML), big data analytics, cloud computing, cybersecurity and intelligent automation.
“The digital landscape is undergoing a profound transformation, and enterprises are at the forefront of this change. The commitment to digital maturity is no longer just about streamlining costs but about boldly shaping the future,” said Akshay Khanna, Avasant Managing Partner.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)