New Delhi, April 29 -- India is expected to experience double-digit growth in their IT spending in 2024. As a report by market research firm Gartner dated April 17, IT spending in India is predicted to be $139 billion, 13.2% higher than last year. Notably the forecast for 2024 is markedly higher than IT spending in 2023 which stood at about $123 billion, reporting only a 1.4% over the previous year.
"A notable shift in mindset within Indian organisations, transitioning from technology laggards to frontrunners, drives increased investment in IT to stay competitive and innovative," noted Rajsekhar Datta Roy, Chief Technology Officer, Sonata Software.
Gartner includes parameters such as data center systems, devices, software, IT services, and communication services in its forecast. For 2023, the software spending category saw the highest growth. Gartner's report attributes this to CIOs' focus on growth prioritisation and operation efficiency using software assets and emerging technologies such as generative AI.
"India's thriving IT industry with talented personnel and a proven track record in software development and services, makes India an ideal location for companies to outsource their services," said Saravanan T, Director, Engineering Product Management, Ascendion.
The IDC report from March said that IT spending in India (excluding consumer spending) is expected to rise at about 10% CAGR, with the software market consistently showing a double-digit growth for a forecast period of up to 2027.
Enterprises are prioritising key technologies such as AI, modernisation of data landscape, cloud computing, and data centers. Generative AI, in particular, has become a source for optimism and innovation, said Gartner's report. However, such projects are in planning and evaluation stage, and the revenue generated from Gen AI in the software industry is predicted to be minimal.
"Although investment in General Artificial Intelligence (GenAI) is still in its nascent stages in India, its future growth potential and impact on the market are evident and promising. In India, Oracle's strategy harnesses Generative AI to drive innovation and inclusive progress. By integrating AI solutions, Oracle empowers businesses and government agencies, unlocking potential and fostering a culture of innovation," said Srikanth Doranadula, Group Vice President, Technology and Systems, Oracle India.
To be sure, the Gartner report cited above has also found that worldwide IT spending is expected to be a total $5.06 trillion in 2024, an increase of 8% from 2023. This is an increase from the previous quarter's forecast of 6.8% growth and puts it on track to surpass $8 trillion well before the end of the decade.
Published by HT Digital Content Services with permission from TechCircle.