India’s technology sector is set for a significant growth spurt in the financial year 2024-25, with plans to hire 1.25 lakh new employees, nearly double the 60,000 added in the previous fiscal year. This expansion is detailed in the latest Annual Strategic Review by the National Association of Software and Service Companies (Nasscom), released on February 24.
The tech industry’s total workforce now stands at around 58 lakh employees, and it is poised for further growth. The surge in hiring comes after a period of slowdown due to macroeconomic pressures in major markets like the United States and Europe. However, the sector is now seeing a rebound in demand after over 18 months of subdued growth.
Nasscom has also updated its hiring forecast for FY24, revising the number of employees in the sector from 54.30 lakh to 56.74 lakh. This adjustment reflects the recovery in the industry, signaling a return to momentum.
The tech sector’s revenue is expected to soar to $300 billion by FY26, with FY25 projected to see a 5.1% growth, pushing total industry revenue to over $282.6 billion. The addition of $13.8 billion in incremental revenue from hardware and advancements in AI implementation, particularly Agentic AI, are reshaping the industry’s future. According to Nasscom Chairperson Sindhu Gangadharan, these trends, along with the growing maturity of Global Capability Centres (GCCs), are driving transformation.
Engineering research and development (R&D) and business process management (BPM) are emerging as key growth areas. Digital engineering, in particular, is gaining traction across sectors like banking, healthcare, and retail, with digital engineering deals now accounting for nearly two-thirds of large contracts.
India now hosts over 1,750 GCCs, highlighting the increasing focus on high-value services and product engineering. Nasscom also noted that the industry’s export revenue is now evenly split between global multinational corporations (MNCs) and Indian service providers.
Wipro’s Chief Operating Officer, Sanjeev Jain, commented on the report, emphasizing the need for the tech sector to focus on AI, Cloud, cybersecurity, and emerging technologies to meet the $300 billion target by FY26. “The review strikes a prudent balance between celebrating India’s tech sector resilience and the complex realities of a fragmented global economy,” Jain said.
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