New Delhi, Mar 31 (IANS): India's technology services industry could accelerate growth by 2-4 per cent over the next five years, reaching $300-350 billion in annual revenues, said a Nasscom report on Wednesday.

This will require closer collaboration among stakeholders across the private sector, academia, and the government, said the report titled "Future of Technology Services -- Winning in this decade."

The technology services sector now produces about 27 per cent of India's exports and provides livelihoods to about 44 lakh people, Nasscom said.

Fuelling over 50 digital initiatives across sectors like banking and finance, healthcare, governance, etc, the technology services industry continues to be a prime driver of India's digital dream with a contribution of 8 per cent to the overall economy.

With the ongoing pandemic and the pace at which almost every sector has accelerated their digital transformation journeys, the increasing cloud consumption and other digital services like Artificial Learning (AI) and Machine Learning (ML) are making way for the digital and cloud services.

Coupled with cybersecurity and IoT digital spending, the technology services are expected to reach $300-350 billion in revenue by 2025, according to the report.

"The Indian Technology services sector can utilise the potential of deep technologies like cloud, artificial intelligence, machine learning, IoT, etc., through effective transformational practices, thereby contributing to the overall economy in the coming decade," Nasscom President Debjani Ghosh said in a statement.

"The government needs to encourage and support digital literacy and skilling to ensure its talent, energy, imagination, knowledge, and unmatched commitment unites to address the customers' surging needs."

The next decade will continue to witness growth in technology spend -- primarily driven by the rise of technology natives and digital reinventors, new tech-enabled business models like ecosystems, direct-to-stakeholder channels and a rise in demand for Digital 2.0 accelerated by the industrialisation of cloud, AI and cybersecurity, Nasscom said.