India work tech market set to double in next four years

The future of work technologies market is set to double in next four years, growing at a CAGR of 19 per cent, according to a report by Nasscom launched in partnership with Microsoft.

Nasscom in partnership with Microsoft launched a report earlier this month at NTLF, titled “Technology Reshaping the Future of Work: India Perspective.” The report analyses key trends shaping the future of work in India, how technology is leading to digitisation of work processes and employee experience, and highlights use cases of deployment of emerging technologies in advancing future of work.

The future of work technology solutions market in India has grown signficantly amid the Covid-19 pandemic. India’s future of work tech solutions market currently stands at ~$1.1 billion and has attracted ~$115 million in funding over the last two years, as per the report.

Growth during pandemic
A majority of organisations have leveraged such solutions in the shift to remote work amid the pandemic. As per the report, 92 per cent of organizations believe future of work technology solutions have played a critical role in organisational resilience during the pandemic. These tech solutions also enabled remote working for over 90 per cent of workforce in tech industry in India within 2-3 weeks of second wave.

Moving forward, 93 per cent of tech organisations in India are looking at adopting hybrid work model beyond the pandemic.

“Workplaces are transforming to adopt evolving hybrid operating models with increasing demand for on-demand workspaces, and rise of satellite offices in Tier-2 cities and beyond,” the report said.

Key trends
The report also highlighted certain key trends when it comes to the future of work. As per the report, nearly 70 per cent of organizations in tech industry in India have adopted a hybrid work mode while 63 per cent of Indian enterprises have ramped up investments in hybrid cloud services.

From an employee perspective, 74 per cent employees want flexible remote work options to continue.

Regarding employee priorities, mental wellness has emerged as the top non-financial consideration for employees. “Employee lifecycle is getting leaner and more streamlined by leveraging technology,” the report said.

Tech adoption
As organisations adopt such tech solutions, talent attraction and recruitment has seen the greatest tech adoption with over 80 per cent of post-pandemic hiring done virtually. Further, 73 per cent of business decision-makers are considering redesigning office spaces to better accommodate hybrid work environment.

“In the last two years, India has shown tremendous resilience in the face of an unprecedented crisis affecting every organisation and person,” wrote Sangeeta Gupta, SVP and Head of Strategy, Nasscom and Rajiv Sodhi, Chief Operating Officer, Microsoft India in the foreword of the report.

“Technology has been the most critical enabler in ensuring business continuity and reshaping when, where and how we work. By effectively leveraging tech solutions, organisations have been able to successfully navigate the challenges posed by the pandemic, enhance efficiencies, and develop long-term business resilience. As organisations embrace hybrid work, technology will continue to play an important role in reimagining the complete employee experience – from recruitment and onboarding to wellness insights to employee engagement and learning. As we live through this generational shift in our economy and society, digital technology will help us overcome constraints and reimagine our work,” they added. The Outreach