There has been a notable acceleration in technology spending during the pandemic, and it witnessed a 30% jump in digital transformation deals, according to a report by technology services industry body National Association of Software and Service Companies (Nasscom).
The joint report, Future of Technology Services – Navigating the New Normal, prepared by Nasscom and McKinsey, has also found out 80% jump in cloud spending since the pandemic.
Pravin Rao, Chairman, Nasscom and Chief Operating Officer (COO), Infosys, said, “The IT services industry is seeing a huge opportunity for growth going forward, but they have to focus on certain key things, including lifelong skilling of employees, to tap it.
“The pandemic had an impact on lives and livelihood. At the same time, it has also acted as a catalyst for change. We have seen how technology has been critical in our lives and we have seen technology has helped us in dealing with the pandemic in terms of enabling work from home.” He added, “There is a huge opportunity in front of us. There is some work to be done by the industry.”
Citing the report, Noshir Kaka, Partner, McKinsey, also said, “Tech natives and digital reinventors with revenue over $3 billion have driven 65% of the $6 trillion growth in market capitalisation between January to July 2020, highlighting that technology is now core to future business recovery.”
Rao added that the hybrid model of work is going to continue and it could increase the propensity of outsourcing.