How are IndianEnterprises
Evolving?
Building Business Models for theAI Everywhere Era12

Shifting towards a Digital Revenue-based ModelIn the next three years, Indian enterprises expect
60% of their revenues to be generated fromdigital businesses.

40%

60%
60%

Indian enterprises are shifting towards a moredigital revenue-based model prioritizing customer
satisfaction, revenue generation, and innovation
for the next two years.

The Challenge:

31%

organizations identify 'Lack of a Suitable Technology
Partner to assist in Transforming' as a key challenge.

Investing MORE in IT,with CEOs steering Digital Strategy
Indian companies are expected toinvest — around

US$ 63 Billion ,or almost 19% growth year-on-year.

In 2024, 70% of organizations plan to increase their IT budgets to stay resilient,competitive, and efficient.
Who is driving the company’s digital strategy andselection of digital technology and services?

38%

35%

CEOs

CIO/CTOs

CEOs are getting more hands-on with IT decisions as
they steer their companies into the digital lane.

34Embracing AI Everywhere to Become
A Digital Business

By 2027, 70% of CEOs will assert that their C-suite technology leader’s primaryfunction should be to invest in digital-first initiatives to deliver on the digitalrevenue targets.

What is India C-Suite’s thoughts on Generative AI?
GenAI will be a part of a broader digital strategy amongst Indian businesses.

Current
Approach toGenerative AI

56

Doing some initial exploration of potential
use cases (piloting/proof of concept)

42%

Already using Generative AI for some use
cases

34%

Planning to explore and invest in GenAI
technologies in the next two years

19%

No plans/not relevant/not in ourfocus

5%

Top Industries Leading the GenAI Investment
Retail, Media, and Manufacturing industries will lead investments in GenAI
Technologies in India in the next two years followed by BFSI & Healthcare.

32%

23%

21%

Retail Trade &Wholesale

Communicationand Media

Manufacturing

Some Actionable Guidance

For Technology Buyers

For Technology Vendors

Identify areas of quick wins to provethe value of digital technology
investment to build greater support
for digital initiatives.

Proactively identify synergistic
opportunities to jointly approach
potential clients with their smaller
tech and consulting partners.

Start to explore digital businessmodels that would be a good fit foryour business and prioritize POCs todemonstrate further or rule out
their value.

Showcase new and innovative
services-led alternatives to traditional
IT offerings and leverage partnerships
with Independent Software Vendors(ISVs) and infrastructure providers.

Take an agile approach to productand service development but ensure
GenAI outputs align with company
values and are attainable.

Demonstrate alliances with purposedriven, digital-first technology
innovative solution providers to tap
into the increasing appetite ofenterprises.

Sources:IDC FutureScape: Worldwide Digital Business Strategies 2024Predictions — India Implications, # AP50372723, December 2023
IDC Digital Business Survey 2023 (India), August 2023. n = 305.
The complete results of the survey will be published as researchdocuments published as part of IDC’s India Digital Business andTechnology Strategies research program.

Analysts: NEHA GUPTA
Senior Research Manager
IDC India

SHARATH SRINIVASAMURTHY
Associate Vice President
IDC India

IDC India Digital Businessand Technology Strategies

Talk to IDC

Enquiries: Shivani Anand
Senior Marketing Specialist
IDC India
idcindiamarketing@idc.com

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