IT Spending in India Estimated To Touch $108.5 Billion

CIOTechOutlook Team | Thursday, 06 April 2023, 11:27 IST

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India is expected to spend $108.5 billion on IT in 2023, while the worldwide IT market is expected to reach $4.6 trillion, up 5.5% from 2022 as per sources.
 
Gartner predicts that all areas will see increases in IT spending in 2023, notwithstanding the ongoing global economic uncertainty. 
 
"IT spending will remain strong, even as many countries are projected to have near-flat gross domestic product (GDP) growth and high inflation in 2023. Prioritisation will be critical as CIOs (Chief Information Officer) look to optimise spend while using digital technology to transform the company's value proposition, revenue and client interactions," said John-David Lovelock, Distinguished VP Analyst at Gartner.
 
The survey also noted that this year, as businesses prioritise investing to gain competitive advantages through improved productivity, automation, and other software-driven transformation projects, the software segment will experience double-digit growth.
 
In contrast, the electronics segment will experience a fall of about 5% in 2023 as customers put off buying new products due to dwindling disposable income and a lack of compelling reasons to do so.
 
"CIOs face a balancing act that is evident in the dichotomies in IT spending. For example, there is sufficient spending within data centre markets to maintain existing on-premises data centres, but new spending has shifted to cloud options, as reflected in the growth in IT services," Lovelock said.
 
The infrastructure-as-a-service industry, which is anticipated to rise by more than 30% this year, is the main reason why the IT services category will continue to expand through 2024.
 
According to the survey, many Indian CIOs are pursuing cost-cutting and efficiency initiatives, which is causing a decline in the expenditure on data centre systems.
 
Spending on IT services in India is anticipated to increase to 21.9 billion by 2023 due to the acceleration of cloud migration and a lack of IT talent.
 
Source IANS
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