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Unveiling the Global and Indian Technology Landscape: Insights from Quarterly Industry Review Q3FY24
Unveiling the Global and Indian Technology Landscape: Insights from Quarterly Industry Review Q3FY24

March 15, 2024

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In the ever-evolving realm of technology, Q3FY24 revealed intriguing dynamics shaping both global and Indian economies. Let's delve into the key highlights that shed light on the trajectory of technological growth and its impact on various sectors.

Global Economy: IMF's January CY2024 estimate projected a 3.1% increase in global GDP for CY2023 and a similar outlook for CY2024. However, this forecast remains below the historical average due to several factors, including high central bank policy rates and the withdrawal of fiscal support.

Indian Economy: India's GDP is anticipated to grow at a robust rate of 6.7% in CY2023, driven by strong domestic demand. The IMF's January CY2024 estimates suggest a continued growth trend with a projected GDP growth of 6.5% in CY2024.

 

 

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Global Technology Spending: According to IDC, worldwide tech spending experienced a moderate growth of 4.4% year-on-year in CY2023. Notably, enterprise software and IT services emerged as the primary drivers of this growth, offsetting the decline in hardware and devices.

Global ACVs: ISG reported Global ACVs of US$23.4 Bn in Q4CY23, showing a stable growth pattern compared to the previous quarter. Managed services saw a slight decline, while IT outsourcing and BPO exhibited varied trends. As-a-Service ACV increased by 2.3% with an increase in Software-as-a-Service.

 

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Overall Indian Technology Industry

The Indian tech sector maintained a cautious stance with a 0.5% quarter-on-quarter and 1.4% year-on-year revenue growth in reported currency.

Geographic Markets: In Q3FY24, EMEA witnessed marginal q-o-q and India grew double digits, while North America experienced a q-o-q decline.

Vertical Markets: Energy & Utilities, Manufacturing, Healthcare, and Telecom sectors demonstrated sequential revenue growth, while BFSI, Retail, Travel, and Hospitality sectors faced challenges.

 

Industry Segments:

Pure-Play ER&D: Despite a slower growth rate, ER&D sectors showed promise, especially in medical devices, healthcare, and digital manufacturing. However, transportation witnessed muted growth due to persistent supply chain issues.

Pure-Play BPM: Revenues in BPM grew marginally, reflecting deal ramp-ups and a heightened focus on data and analytical services.

 

Employee Dynamics

The employee base declined q-o-q as companies focused on enhancing utilization levels, which reached 83.5% during the quarter. However, attrition rates maintained a downward trend, signaling stability in the workforce.

 

Conclusion

The technological landscape in Q3FY24 exemplifies resilience amid challenges, with both global and Indian markets poised for continued growth and innovation.

 

Source: https://nasscom.in/knowledge-center/publications/quarterly-industry-review-march-2024


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Prajwal Pandey
Research Analyst

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