India could lose $118 billion in GDP contribution and 5 million job opportunities by 2026, if businesses and governments are slow to adopt cloud computing, industry body Nasscom said in a recent report. this.
The newly released report titled: “The Future of the Cloud and Its Economic Impact: Opportunities for India”, says that with limited understanding of cloud features and benefits, the Integration issues with legacy systems, and a lack of internal capabilities to drive transformation across industries, are posing serious threats to cloud adoption.
Furthermore, with global companies moving towards new cloud-based systems like 3D printing, IoT, robotic automation, slow or low adoption, etc., could lead to industries of India loses its competitive edge and in turn loses its attractiveness to investors, expats and businesses.
If they can overcome these challenges, there is huge potential ahead, please support Nasscom. Large-scale Cloud adoption could contribute $380 billion to India’s GDP and add 14 million direct and indirect job opportunities by 2026, it said.
Nasscom leaders also emphasized that a comprehensive effort could lead to continued growth of 25%-30% in cloud spending over the next 5 years, reaching $18.5 billion. Furthermore, with digital transformation initiatives on the rise in businesses, governments and SMBs today, Cloud adoption is likely to account for more than 8% of India’s GDP in the next 5 years.
On the plus side, the Indian cloud computing market has outstripped the global market in terms of growth rate. Factors such as growing digital population, capital inflows, business digitization and favorable government policies, are driving India’s cloud growth.
Debjani Ghosh, President of Nasscom said, “Cloud adoption offers huge potential across multiple dimensions such as economic growth, digital inclusion, jobs and global technological advantage.
However, she added that to ensure large-scale adoption of the cloud and cloud-based services, a multi-stakeholder collaboration to address the thinking and cognitive challenges in Cloud adoption is essential.
Ghosh also emphasized on “encouraging SMBs to migrate to the cloud, rapidly expanding talent through retraining and upskilling programs, and modifying cloud-related policies to make it easier to easy cloud deployment” for India to gain a competitive advantage in the cloud.
The report further recommends that for India to position itself as a global hub for cloud services and cloud talent, stakeholders need to undertake major cloud adoption initiatives, talent building and regulatory support.
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