menu
close

Harnessing the Power of Generative AI – Opportunities for Technology Services

DOWNLOAD PDF

Generative AI is estimated to yield an annual economic value of USD2.6 to USD4.4 trillion globally, with the highest impact expected across high tech, banking, and retail industry. Across the four application themes - Concision/Virtual Experts, Coding, Customer engagement, and Content generation - approximately 75 percent of the value is expected to be concentrated in four functions – sales and marketing, software engineering, customer operations, and product and R&D.

This study, Harnessing the Power of Generative AI – Opportunities for Technology Services, sheds light on the potential impact of Generative AI on the technology services sector, opportunities this technology revolution holds for the industry players, and what these players can do to seize the opportunities.

Key Findings

Across the four application themes, 70% impact is expected from re-imagining existing analytics/AI use cases

  • Gen AI is expected to offer significant productivity increase for customer support agents, and developers using Gen AI
  • Enterprises can see an increase in customer interaction through Gen AI
  • More than 10X efficiency improvements now possible for documentation with the help of Gen AI
Gen AI will present four potential areas of opportunity for the technology services providers - expansion in addressable market, delivery excellence, sales excellence, and productivity gains in SG&A

  • Gen AI can offer positive gains in topline, improvement in delivery productivity and SG&A productivity
  • Gen AI can bring about significant effort reduction in application development and BPO service lines
  • 90% of CXOs leading sales teams believe Gen AI will become mainstream in sales in the next 2-3 years
The expected revenue and margin impact, attributed to Generative AI, will be driven by shifts in the existing business economics, scope compression, expanding of services and offerings, and productivity gains in SG&A functions

  • Gen AI has accelerated the timeline for achieving 50% automation levels across ‘current work activities’
  • Substitution of existing revenue, insourcing by enterprises, and erosion of existing revenue due to automation of workflows will have a net negative impact on technology service providers
  • New revenue opportunities, higher-margin revenues, and reduction in SG&A costs will have a net positive impact on technology service providers
Multi-dimensional uncertainties pertaining to Generative AI make it challenging for technology service providers to formulate a winning strategy

  • Technology service providers need to focus on seven building blocks - Strategy, technology & partnerships, data, operating model, talent, risk management & governance, and adoption & change management – to seize opportunities
  • Highest impact on talent is expected on levels L1 and L2, running up to L5
  • Gen AI is expected to change the nature of work across existing roles

Get The Report

Download the report and get detailed insights on the sector.

Regular Price : Free Download
Member Price : Free Member Login

Nasscom Members- Login to download the report

Related Reports

Generative AI Startup Landscape in India – A 2023 Perspective

Generative AI Startup Landscape in India – A 2023 Perspective

As of May 2023, the Indian Generative AI landscape had more than 60 startups dedicated to offering solutions and services to their customers spread across various industry verticals.…

State of Data Science & AI Skills in India – Data and the Art of Smart Intelligence

State of Data Science & AI Skills in India – Data and the Art of Smart…

Riding on the positive spending growth trends in AI, there has been a spurt in the demand for professionals which has doubled in the past 3-5 years. The surge in demand for Data…

NASSCOM Tech Start-up Report 2022 – Rising Above Uncertainty: The 2022 Saga of Indian Tech Start-ups

Nasscom Tech Start-up Report 2022 – Rising Above Uncertainty: The 2022 Saga of…

The report underlines the maturity of India's tech start-up ecosystem, highlighted by the ability to circumvent cyclical ups and downs in addition to the growth of new-generation start…

India’s DeepTech Start-ups – Poised for Impact

India’s DeepTech Start-ups – Poised for Impact

“India’s DeepTech Start-ups – Poised for Impact” analyses the Indian DeepTech landscape, enumerates the characteristics that differentiate a DeepTech start-up vis-a-vis a tech start-up…

AI Platforms - Next Frontier for Indian IT Services

AI Platforms - Next Frontier for Indian IT Services

An AI Platform is a collection of open source products, cognitive technologies and proprietary capabilities that allow building, deploying and operationalizing analytical workflows and…