Six transformative technologies to propel tech adoption and growth in 2024: Deloitte Tech Trends India report

• The Indian technology industry's revenue, including hardware, is set to surpass US$254 billion in FY2024, with a 3.8 percent year-on-year growth, marking an addition of more than US$9 billion compared with the previous year.
• In 2024, India's Global Capability Centres (GCCs) are poised to assert their prominence, illustrating India’s ability in addressing international tech needs.
• In FY 2024, ER&D contributed a substantial 48 percent or US$2.88 billion, to the US$6 billion export revenue addition.

National, 3 April 2024: Deloitte India’s latest Tech Trends 2024 report reveals that India continues to lead the global technology (tech) sector despite global economic uncertainties. The report estimates FY 2024 revenue of US$254 billion for India's tech sector (3.8 percent y-o-y growth) and reaffirms its status as a trusted global leader. Industry stakeholders expect India to emerge as a key player in several key domains, including spatial computing, the industrial metaverse, cloud computing, and generative AI (GenAI). These projections are complemented by a strong focus on modernisation, security, and trust.

According to the report, the rising prominence of GCCs, highlighting India's increasing ability to meet international tech demands, is a key contributor to the country’s growth. With over 1,600 GCCs, the Indian GCC market is on track to exceed US$100 billion by 2030. It is likely to employ more than 4.5 million people across 2,500 GCCs nationwide by 2030. Additionally, the focus on Engineering Research and Development (ER&D) positions India as a global tech hub for innovative solutions, contributing significantly to export revenue.

Deepa Seshadri, Partner and CIO Program Leader, Deloitte, India, said, “India Inc. is on the brink of transformative change, where embracing emerging technologies has helped us take a leap, bringing a spotlight on India’s growth story. The Tech Trends 2024 report highlights India’s remarkable resilience, redefining its position as a frontrunner in swiftly embracing emerging technologies.”

"Through our comprehensive efforts in the CIO Program, we aim to enable CIOs and tech leaders to transform from technologists to strategists. By fostering a culture of innovation that is agile and collaborative, we aim to harness the power of technology and shape a future that is not just prosperous but also inclusive and sustainable” she added.

Keerthi Prakash, Partner, Consulting, Deloitte India, said, “We are witnessing an unprecedented digital revolution currently, where India stands at the forefront of global economic growth, taking a leap with dynamic changes that impact businesses, decision-makers, industries, and citizens alike.

As more businesses use immersive experiences powered by 5G and spatial computing, coupled with government initiatives supporting digital innovation, India is poised for a transformative era. From application development to automation, SaaS, and cloud enterprise spending, technology interventions are revolutionising traditional industries, breaking silos, bringing greater modernism and optimism, and propelling India into a new era of digital excellence.”

In 2024, the focus will be on identifying investment areas and evaluating outcomes. GenAI holds immense promise but also carries risks such as misinformation and synthetic media. Enterprises must manage GenAI-related risks through integrated risk mitigation and governance processes. India’s tech ecosystem is advancing with increased software exports, tech workforce growth, tier-2 city development, government support, and improved infrastructure, solidifying its position as a reliable tech talent hub.

The six tech trends for 2024 are as follows:

• Trend 1: Interfaces in new places: Spatial computing and industrial metaverse

India’s tech landscape is rapidly evolving with spatial computing, blending the physical and digital realms to drive productivity. From virtual banking experiences to immersive medical training, AR and VR are shaping the industrial metaverse. With a projected revenue of US$2.1 billion in 2024 and a CAGR of 40.03 percent until 2030, India is poised to excel in spatial computing.

Banking, retail, healthcare, manufacturing, automotive, and education are among the key sectors using this technology. Driven by a robust tech ecosystem, smartphone penetration, and government support, spatial computing adoption is gaining traction, amplified by the pandemic's push for remote collaboration.

• Trend 2: Genie out of the bottle: Generative AI as a growth catalyst

India is experiencing a significant surge in AI adoption, with a 2.7X growth in AI-driven initiatives between 2023 and 2024. More than 650,000 employees are set to undergo GenAI training, marking a concerted effort to prepare for an AI-driven future. The Indian GenAI market is projected to post a CAGR of over 24.4 percent during 2023–2030, potentially adding US$359–438 billion to the country’s GDP by 2029–2030. Ensuring robust encryption, maintaining access controls, and adhering to regulatory standards are critical for cybersecurity in GenAI deployment.

Furthermore, a focus on responsible AI integration to align with ethical principles, societal values, and legal frameworks is imperative. GenAI’s versatility and transformative capabilities are driving innovation and efficiency across industries, with sectors such as healthcare, retail, education, and agriculture increasingly using it for operational optimisation and competitive advantage.

• Trend 3: Smarter, not harder: Beyond brute force compute

Organisations are transitioning towards a data-driven approach, leading to a surge in computational demands. Traditional reliance on hardware advancements, such as CPUs and GPUs is reaching its limits. The future of computing lies in optimising codes rather than brute-force hardware upgrades. The emergence of GenAI adds complexity, requiring innovative solutions beyond just processing power.

India is actively involved in advanced computing, particularly quantum computing. The Ministry of Electronics and IT sponsors most ongoing quantum initiatives. Meanwhile, enterprise adoption of quantum computing technology currently stands at ~12 percent. It is expected to reach 35–45 percent over the next decade, generating an estimated US$280–310 billion for the economy. The National Quantum Mission, Quantum Computing Applications Lab (QCAL), India AI Mission, and India Digital Public Infrastructure (DPI) are among the key initiatives in this field.

• Trend 4: From DevOps to DevEx: Empowering the engineering experience

India has one of the largest pools of young and skilled tech talent. The country is projected to have 18 million STEM graduates by 2027. With 2 million IT and engineering professionals currently based in India’s top 15 tier-2 cities, the country is undergoing a tech-driven transformation. Success in India’s dynamic tech ecosystem hinges on attracting and retaining top-tier tech talent.

To excel as organisations, prioritising Developer Experience (DevEx) enhancement is paramount. Companies that invest in DevEx foster a more engaging and fulfilling workplace, reducing turnover and costs. DevEx is not just about boosting employee satisfaction; it is a strategic investment for both companies and the country. By nurturing a positive DevEx environment, India can use its extensive developer talent, spur innovation, and achieve sustainable growth on the global tech stage.

• Trend 5: Defending reality: Truth in an age of synthetic media

Navigating truth in a world of deepfakes, misinformation, phishing, and cyberattacks is challenging. With India’s huge population and easy internet access, this increases multifold. However, organisations are aggressively managing challenges through a mix of security policies, regulations, and technologies.

• Trend 6: Core workout: From technical debt to technical wellness

Indian companies are promoting innovation and growth by upgrading their legacy systems through IT modernisation and ERP upgrades amid a rapidly changing digital landscape. With 70 percent of companies dealing with legacy IT systems, fresh perspectives on technical debt and human experience are vital for fully realising the benefits of built-to-evolve organisations.

GenAI, 5G/6G, Web 3, blockchain, and IT modernisation are driving this trend globally. Cloud, DevOps, data analytics, AI, IoT, and security are key investment areas. As digitisation picks up pace, managing active and legacy software has become crucial to avoid technical debt. The top benefits are increased productivity, reduced costs, enhanced agility, and improved scalability.

__________________________________________________________________________________

This press release has been issued by Deloitte Touche Tohmatsu India LLP.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.