Nasscom pegs Indian IT industry revenue at $194 billion for FY21

Mumbai | Bengaluru: National Association of Software and Service Companies (Nasscom) has said that the Indian IT industry is pegged to report revenue of $194 billion in FY21 at a growth rate of 2.3% year on-year.

The three key areas of technology that the IT industry will focus on building offerings in are artificial intelligence, cybersecurity, and internet of things. “One of our biggest focuses is on developing a very strong ecosystem and regulatory framework for these three technologies,” said Debjani Ghosh, president at Nasscom.

The Indian IT industry now accounts for 8% of the national gross domestic product (GDP) and has a 52% share in services exports from the country.


“Digital transformation is the top most priority for global corporations and in a highly connected world that will remain largely contactless for an extended period. There are shifts in business models, customer experience, operations, and employee experience,” Nasscom Chairman U.B. Pravin Rao said. “Our CEO survey for 2021 indicates that almost 70% companies expect investment in global technology higher than the previous year.”

Speaking at the annual Nasscom strategic review, Chief Strategy Officer Sangeeta Gupta said that although there were concerns related to job cuts exacerbated due to the pandemic, the industry continues to be a net hirer. The IT industry saw 138,000 new hires in the last year.

According to Gupta, a key trend during the year was a shift in about 10% contracts to an outcome-based pricing model. The industry, she said, has seen a switch over from “fixed contract pricing to outcome based pricing, coming on the back of increased partnership with global clients.”

The industry is also increasing its focus on digital capability building, Gupta said, adding that cloud was the big driver for the year.