A recent study by Nasscom shows that the Indian IT companies made a massive contribution to the US economy last year through employment, investment, strategic partnerships, and business deals. The Indian IT companies, alongside its customers, have generated $396 billion in US sales, supporting a total of 1.6 million jobs and contributing over $198 billion to the US economy. It also spent about $1.1 billion to grow STEM learning in the US and developed partnerships with nearly 180 institutions in the US.
Nearly 40-78 per cent of the revenues of Indian IT companies come from the US. Of which, TCS, Infosys, Wipro, HCL Technologies and Tech Mahindra have more than 50 per cent exposure. Indian IT accounts for about 55 per cent of the global IT services industry market share.
Read: Indian IT is hot and going super strong
The Indian IT companies significantly contribute to India’s GDP – 8 per cent in the fiscal year 2021. As per a Gartner report, the Indian IT spending in India was forecasted to be $81.89 billion last year and further increase to $101.8 billion in 2022, an increase of 24.31 per cent year-on-year. Also, the Indian IT industry’s revenue had grown by 2.3 per cent to $194 billion in FY21.
This is bound to change in the coming months, with the threat of recession lurking around the corner. As per Bloomberg India, India has a zero per cent chance of going into recession compared to other countries like the US, China, Japan, etc. However, some impact can be seen on Indian IT companies as the majority of their business is in the US, and there is a 40 per cent chance of the US in recession, leading to job cuts, loss in the market, and deal hold-ups, supply chain disruptions, etc.
Read: This time it’s different for Indian IT
During the recent earnings calls, most IT heads were optimistic about the recession and believed that the customers would spend in the tech space while they kept a close watch on plausible roadblocks.
While there is a high chance of recession and inflation in the US hitting the Indian IT sector, there seems to be a glimmer of hope, given the history of companies coming out strong, particularly during the 2008 financial crisis and the recession, where India was able to sustain and face those eventualities and come out successful on the economic front.
Read: Indian IT loves a good recession
Market talks: Every time a US recession comes, it brings down the oil prices, hugely benefiting the Indian economy. But, if the impact is huge, it will put pressure on the IT sector in the short term.
AIM Insights:
The attrition rate in the IT space continues to rise at an all-time high across companies. Based on the latest financial findings, Cognizant seems to have the highest attrition rate at 31 per cent (FY22 Q2), while Tech Mahindra witnessed a decline in attrition rate from 24 per cent to 22 per cent in FY23 Q1.
AIM Financials:
Top Stories of the Week >>
How will Adani’s entry in 5G auction impact telecom
In his trademark style of taking uncharted territory aggressively, Gautam Adani marched into telecom soon after having promised an investment of USD 70 billion in clean energy and infrastructure this week. This is going to impact the telecom industry significantly. Find out more here.
Three innovation areas in AI that everyone is fighting for
It is undeniable that whenever a new, popular and eye-grabbing tool comes to the market, tech companies rush to replicate them and create their renditions. This gives birth to a certain trend – a pattern. This article deep-dives into some of those trends. Click here to check them out.
The forgotten story of Palm Inc
This year marks the 30th Anniversary of Palm Inc, the once-mighty, now-defunct maker of the pioneering 1990s personal digital assistants (PDAs) and smartphones. This California-based company single-handedly built the market that iPhones and Android devices dominate today. Read their epic journey here.
People & Tech >>
A degree in data science is not important, says Meesho’s AI head
In an exclusive interview with AIM, head of AI at Meesho, Debdoot Mukherjee shares his journey into data science, machine learning and everything AI. Check out the interview here.
Why Amit Sharma created DoWhy
A researcher at Microsoft and a creator of the software library DoWhy, Amit Sharma speaks to AIM about PyWhy, Causal Inference, and more. Earlier this year, the library (DoWhy) was in the news after Microsoft moved it to an independent open source governance model in a new PyWhy GitHub organisation. Check out the interview here.
How TVS Motors utilises AI
Commemorating over 35 years of unrivalled racing legacy now, TVS Motor Company has been one of the most dynamic motorcycle brands in the world. In an exclusive interaction with AIM, Maheshwaran Calavai, chief digital and AI officer at TVS Motor Company, reveals their AI prowess alongside other technology innovations. Read the complete story here.
AIM Videos >>
The attrition is at an all-time high across sectors – the reasons for employees quitting their jobs are plenty – some quit because of horrible bosses, poor management, better and worse salaries, and so on.
In our latest episode of Oye Techie, we asked the techies of Namma Bengaluru why they want to quit their jobs. The reasons are quite insightful and entertaining!
Make sure to watch till the end >>> 🌱
Startups, Apps & Tools >>
A learning platform for data science and machine learning offers practical, hands-on, and coding-focussed courses.
It is a new open source ML-powered tool developed by Google AI for subjective or conceptual queries over images.
A graph database platform enables companies to perform complex, powerful queries at scale. It is available as a fully managed cloud service as well as self-hosted.
Research & Papers >>
ShAPO: Implicit Representations for Multi-Object Shape, Appearance, and Pose Optimisation
Toyota Research Institute and Georgia Institute of Technology have developed ShAPO, a learnable method that unifies accurate shape prediction and alignment with object-centric scene context. Check out the research paper here.
NewsStories: Illustrating articles with visual summaries
Boston University, MIT-IBM Watson AI Lab, and Google Research researchers have introduced a large-scale multimodal dataset containing over 31 million articles, 22 million images and 1 million videos. Also, they have developed an intuitive baseline that outperforms some of the methods on zero-shot image-set retrieval by 10 per cent on the GoodNews dataset. Check out the research paper here.
Events in Focus >>
#MeetMeAtCypher
Here's your chance to be part of India's Biggest AI Conference, Cypher 2022.
The event is scheduled for September 2022, bringing three power-packed days of networking and learning. Register now!
Top News of the Week >>
Create your profile
Only paid subscribers can comment on this post
Check your email
For your security, we need to re-authenticate you.
Click the link we sent to , or click here to sign in.