According to International Data Corporation (IDC), information technology (IT) spending in India for 2024 is expected to grow by 11 per cent on a year-on-year (YoY) basis and reach $44 billion in 2024.
The report stated that in 2023, Indian enterprises continued to invest in digital technologies to increase customer engagement and satisfaction, launch new products and services, and improve operational efficiency to drive revenue growth and profitability, despite economic headwinds and uncertainty. They allocated their budgets mainly to software, application development and cloud migrations, a reflection of their judiciousness to make their hardware assets work longer and elongating refresh cycles.
The IT spending in India is expected to accelerate at a compound annual growth rate (CAGR) of 9.9 per cent over the coming years to cross the $59 billion mark in 2027 with the software market consistently showing double digit growth across the forecasted years. Generative artificial intelligence (GenAI) will continue to accelerate AI adoption in India with more leading organisations exploring or investing in GenAI use cases. IDC has also forecasted that investments on GenAI will be 26 per cent of the overall AI spend in the country or a CAGR of 101.6 per cent by 2027.
Commenting on the report, Vasant Rao, managing director, IDC India, and South Asia, said, “India Inc.’s shift to digital continues unabated as enterprises march aggressively towards an AI Everywhere future. We can clearly see this in the growth of AI investments from Indian enterprises.”
Meanwhile, Steven Frantzen, head of WW Strategy and senior vice president (VP) & regional managing director, Europe, Middle East and Africa (EMEA), IDC, said, “Even with economic headwinds and uncertainty in 2024, we anticipate that global information and communication technology (ICT) spending will expand by more than 6 per cent which is 3 times of projected gross domestic product (GDP) growth, as we enter a new era of accelerated digital innovation, driven in part by greater investment in automation and generative AI.”
