New Delhi: IT spending in India is believed to experience a boost, reaching an estimated $124.6 billion in 2024, marking a 10.7% increase from the previous year, according to a report by Gartner. This follows a period of restrained growth in the sector, primarily influenced by diminished investments in devices and communications services.
According to the report, projections for 2024 indicate a shift in spending patterns, with a prominent focus on software and IT services. Anticipated growth rates for software investments are expected to surge by 18.5%, while IT services are projected to witness a growth of 14.6%.
Naveen Mishra, Vice President and Team Manager at Gartner, said, “While investments in artificial intelligence (AI) and Generative AI (GenAI) will contribute to IT spending growth in India, their impacts on IT spending levels will not be evident until 2025. GenAI will account for a small portion of IT spending through 2024.”
Mishra further elaborated, stating, “Indian firms are expected to make investments in AI and automation during this time, as a strategic effort to improve operational efficiency and address the ongoing shortage of IT talent. However, it is not until 2025 that GenAI will begin to carve its place in IT budgeting amongst Indian companies.”
As Indian organisations expedite the integration of digital technologies such as AI, machine learning, and secure access service edge (SASE), the report predicts a heightened adoption of cloud services. Mishra emphasised that this shift will contribute to the growth of both software and IT services.
Despite a sluggish trend in devices spending in India during 2022 and 2023, attributed to inflationary pressures, the report forecasts a robust resurgence in 2024 with 10.1% year-over-year growth in devices spending, driven by the willingness of Indian consumers to pay a premium for an enhanced experience when upgrading to new smartphones.
