Tech CEOs see revenue uptick in H2 of FY24 amidst headwinds: NASSCOM

FILE PHOTO: A security guard stands at the venue of National Association of Software and Services Companies (NASSCOM) India Leadership Forum in Mumbai | Photo Credit: DANISH SIDDIQUI

Tech CEOs in the country were expecting a revenue growth uptick in the second half of the current fiscal amidst continued macroeconomic headwinds for FY2025, industry apex body NASSCOM said on Friday.

With a roughly 50% slide in tech spending and 6% decline in tech contracts in 2023 globally, the Indian tech industry, similar to global markets, was currently navigating a tough terrain, stated NASSCOM Strategic Review.

Yet, growing at 3.8%, the industry was expected to add $9.3 billion incremental revenue and the total industry revenue (including hardware) was anticipated at $253.9 billion in FY2024, the study said.

Rajesh Nambiar, Chairperson, NASSCOM, said, “While headwinds like global economic slowdown, inflation, recessionary fears, and geopolitical conflicts continue to pose challenges, we are confident that the industry will bounce back.’‘

With digital tech spending expected to grow in 2024, the country’s tech sector would also witness the emergence of alternative demand sources, customer retention, and faster go-to-market strategies in newer markets for enterprises, he added.

On outlook for next year, Debjani Ghosh, President, NASSCOM said, “We do see FY2025 as the year of capability building as the new normal. Navigating the current challenges will require the industry to focus on 4Rs: Reshape, Reskill, Rewire growth and Raise IP and R&D investments.”