A report by Nasscom on Thursday stated that the pandemic has accelerated digital adoption, and over 80 per cent of the near-term spending may be driven by COVID-19 resilient digital offerings as enterprises look at re-wiring their operating models for the new normal.
The report titled ‘Future of Technology Services – Navigating the New Normal’, compiled by McKinsey & Company as knowledge partner said that there has been an extensive acceleration in digital adoption by enterprises and that there is a potential increase in outsourcing intensity due to remote working. Digital transformation deals have seen 30 per cent jump; 80 per cent jump in cloud spending, and 15 per cent rise in customer experience have been witnessed since the pandemic. These are contributing to the faster than expected recovery for the technology services industry, and top Indian technology service providers have performed better than analyst estimates in the second quarter of 2020-21. It also highlighted that ‘Tech Natives and Digital Reinventors’ with revenue over USD 3 billion have driven 65 per cent of the about USD 6 trillion growth in market capitalisation between January to July 2020, highlighting that technology is now core to future business recovery.
The report suggests that the world has leapfrogged on digital adoption by 3-5 years in the last 9 months. McKinsey & Company Senior Partner and Global Leader (Analytics) Noshir Kaka said that they are seeing an increased emphasis on digitization across verticals and our analysis shows that 80 per cent-plus of the near-term spending may be driven by COVID-19 resilient digital offerings. The strategic gameboard has changed tremendously in the last nine months.
