India is poised at the brink of an unprecedented digital expansion. Recognizing the importance of unique services and experiences to outpace competitors and maintain relevance, Indian enterprises are increasingly leveraging emerging technologies more than ever. The key differentiators will be the speed and agility in embracing and applying these technologies effectively.
Generative AI (genAI) has sparked considerable interest and momentum in India and is anticipated to continue its ascendancy throughout 2024. Despite existing hurdles, the year is expected to witness a surge in successful genAI deployments. These will necessitate that companies align their AI strategies with their data and cloud strategies. It’s projected that genAI will not only retain prominence but will also integrate into numerous company initiatives throughout India.
We present the top five technological forecasts for India in 2024
About 20% of Indian enterprises will harness the transformative potential of genAI. As genAI is in its nascent stage of adoption, many Indian organizations, particularly those that have yet to modernize their core, will encounter numerous obstacles such as data quality, governance, availability, integrity, appropriate skill sets, selection of suitable large language models (LLMs), security, and inherent genAI issues like hallucinations and biases. These significant challenges, unless properly mitigated, might lead to disastrous outcomes. However, one in every five digitally progressive Indian firms will effectively reap the benefits of genAI.
A vast majority of companies, 90%, will be motivated by genAI advancements to modernize their core systems. Many Indian firms have been burdened with outdated technology, obstructing the adoption of new technologies and best practices. With an anticipated surge in genAI investment in 2024, Chief Information Officers (CIOs) recognize that successful genAI implementation hinges on high-quality data and the use of advanced AI and analytics tools on extensive data lakes/warehouses. Legacy technologies, which inhibit data integration and interoperability, will be a significant impediment in embracing genAI. CIOs will tackle these issues by modernizing their core infrastructure.
Twenty percent of India’s CIOs will reassess their IT financial management and FinOps practices to address accumulated post-pandemic tech debt. The drive towards genAI adoption will necessitate addressing and resolving tech debt. Much of this modernization involves cloud adoption, a quicker pathway to embracing new technologies and tackling tech debt. However, organizations will soon recognize the importance of managing and optimizing cloud expenditures, leading to the adoption of IT financial management and FinOps practices.
Only a small fraction of Indian enterprises will remain on the sidelines, with the majority embracing SaaS. It’s expected that by 2024, 61% of Indian companies will be engaged with software-as-a-service (SaaS) solutions. A mere 11% will persist with on-premise solutions, mainly in highly regulated sectors. As vendors phase out support for on-premises solutions and focus on SaaS offerings, Indian businesses will find themselves compelled to migrate to SaaS solutions. This transition is crucial as managing on-premises solutions becomes increasingly unsustainable and incompatible with new, innovative technologies.
The adoption of genAI in various sectors will prompt the establishment of more stringent SaaS policies. As the personalization capabilities of software advance, vendors will promote their LLMs’ ability to segment, target, and deliver tailored content, thereby accelerating revenue growth. While some sectors will eagerly adopt these innovations, others, particularly in tightly regulated industries, will approach with caution and deliberateness.
These predictions offer a snapshot of the anticipated technological shifts in India for 2024, with each forecast embodying deeper implications and opportunities for businesses. For a more comprehensive understanding and strategic dialogue on these predictions, we encourage reaching out for an in-depth discussion or consultation.
