India is at the cusp of digital hyper growth. Indian businesses have realized that the differentiated services and experiences are key to move ahead of competition and be relevant. They are turning to emerging technologies to build these differentiated services and experience, more than ever before. However, speed and agility along with adequate understanding and deployment of the relevant technologies will make a difference.
Digital technologies like Gen AI have gained lot of interest and traction in India and will remain so throughout 2024. Despite some challenges 2024 will see many successful use cases of Gen AI implementation. For a successful GenAI implementation, firms need their AI strategy to be in line with their data and cloud strategies. We believe, in 2024, Gen AI will not only stay in the “limelight” but will also find its way into many initiatives across companies in India.
Our top 5 India technology predictions for 2024 are:
-
One in five Indian firms to benefit from Gen AI’s transformative impact.
Gen AI is in the early stages of adoption. Indian companies especially ones who have not modernized their core will face a lot of challenges including data quality, data governance, data availability, data integrity, skill sets availability, suitability of the right LLM, security, Gen AI concerns like hallucinations and biases and more. These major roadblocks if not addressed properly would lead to “Gen AI disasters” having potentially catastrophic results. Only digitally advanced companies in India (1 in 5) would be able to successfully benefit from Gen AI implementations.
-
Software commitments to GenAI will drive 90% of firms to modernize their core.
Indian companies have been carrying a lot of tech debt for the past decade. These old technologies hinder adoption of any new technologies and best practices. 91% of companies are expecting investments in Gen AI to increase in 2024. CIOs are aware that for Gen AI implementations to be successful their data quality must be excellent. And they should be able to run the latest AI and analytics tools on top of large data lakes/ warehouses. Old technologies which do not allow data integration and interoperability will be major roadblocks in Gen AI adoption. CIOs will address these challenges by modernizing their core.
-
A fifth of India CIOs to revisit ITFM and FinOps practices to fix post-pandemic tech debt.
Push for Gen AI adoption would force Indian companies to work on removing Tech Debt. A significant part of enterprise modernization involves Cloud adoption, as it is a faster route to adopt new technologies and address tech debt. But soon organizations will realize that they need to manage and maintain their Cloud spending, leading to adoption of ITFM and FinOps.
-
Late adopters will finally move on SaaS, with only 11% staying on the sidelines.
61% of Indian companies are either consumers of SaaS services or plan to be on SaaS applications by 2024. Only 11% of Indian companies will continue to be on-prem solutions. These are primarily companies and applications in the highly regulated sectors. Indian companies would be forced to move to SaaS solutions as vendors increasingly stop supporting on-prem solutions and offer new releases only on their SaaS platforms. Managing and maintaining on-prem solutions would become an expensive affair and companies should get ready to operate such solutions in siloes with not much integration to new innovative technologies or solutions.
-
Firms Pushing into Gen-AI Experiences Will Be the Catalyst for Stricter SaaS Policies.
As personalization capabilities mature, software vendors will tout the capabilities of their LLMs to provide the intelligence required to segment, target, and deliver customized content, to impact top-line revenue growth faster. As some industries would jump into adopting these new capabilities, others, especially in the highly regulated sectors, would be more careful and wary of these new features.
This is just a glimpse of our top predictions. There are many more predictions around tech and as always there are finer nuances around these which require dialogue. I would be happy to chat with you in these topics in detail. Please reach out to us for an inquiry or guidance session to know more.
