Digital tech startups to place India as a hub for innovation: Nasscom-BCG Report

The National Association of Software and Services Company (NASSCOM) and The Boston Consulting Group (BCG) today released a Report titled ‘India in Globalized Services: Innovating @ Scale’ - a comprehensive year-long study capturing perspectives from all industry stakeholders to understand the role and expectations from the Indian technology and services industry and its journey over the last 25 years.

The report addresses the shift in customer expectations from efficiency to innovation and transformation, and highlights the transition of the industry over the years to become the 'partner of choice' for global enterprises. In the last decade India’s role has evolved from an arbitrage and talent led provider to a transformative partner, delivering significant business impact. 

According to the report, in the last decade India’s role has evolved from an arbitrage and talent led provider to a transformative partner, delivering significant business impact. Innovation has been at the core of this journey as this industry was born out of innovation in the form of the Global Delivery Model.

With revenues approaching $150 billion and a market share of over 50 per cent and a workforce of over 3.5 million employees directly serving the industry, India is today at the epicenter of the global services space, consistently enabling customers in their transformation and innovation agenda. This has been a remarkable journey and sets an eminent platform for a strong future.

R. Chandrashekhar, President, NASSCOM, said, “The impact of the Indian industry has been universal, across verticals, geographies and customer segments in delivering transformation and innovation. Customers are increasingly outsourcing business critical operations to India, and this trend will only accelerate further as the industry matures. The emerging eco-system of digital technology startups and increasing collaboration is establishing India as a hub for innovation”.

Talking about the study, he further adds, “Customers are expecting more collaborative partnerships in their transformation journey. The emerging consensus of value today pivots around effectiveness and business impact which includes the ability to drive innovation, fast track adoption of emerging technologies and enhanced competitive advantage”.

Neeraj Aggarwal, Senior Partner and Director, BCG, said, "We see the industry at an inflexion point today. Combined with rising customer expectations of partnership, transformation and innovation – it has been a concerted effort by the leaders of the Indian industry to further build on their robust position. We see a conscious focus on building deeper industry capabilities, co-innovating with partners and corporate venturing supported by a vibrant startup ecosystem and increased R&D focus to provide access to innovation."

"Over the last two decades, we have seen the journey from cost and process excellence to also being an innovation and transformation partner. This is happening across the board. Today there is a strong platform and going forward, we will see further amplification of this trend," Aggarwal added further.

The NASSCOM-BCG initiative will also seek to establish a common framework for assessment of value, given differing views and language. India's continued success in delivering transformative value to become the “partner of choice” for global customers is further accentuated through best in class case studies across verticals and services, included in the study.