IT Spending in India to Grow 11% YoY, to Reach US$44B in 2024, IDC Predicts
According to International
Data Corporation (IDC), IT spending* in India for 2024 is expected to grow
11% year-on-year (YoY), reaching USD $44 billion in 2024. This was presented
today by IDC to CIOs and senior IT leaders from across India during the
thirteenth annual edition of the India CIO Summit themed The Future of IT: Rethinking Digitalization for an AI
Everywhere World.
In
2023, despite economic headwinds and uncertainty, Indian enterprises continued
to invest in digital to increase customer engagement and satisfaction, launch
new products and services, and improve operational efficiency to drive revenue
growth and profitability. 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.
As
India’s digital economy continue to thrive in 2024 and beyond, IDC expects IT
spending* in India to accelerate at a compound annual growth rate (CAGR) of
9.9% over the coming years to cross the USD $59 billion mark in 2027 with the
software market consistently showing double digit growth across the forecasted
years. Generative AI (GenAI) will continue to accelerate AI adoption in India
with more leading organizations exploring or investing in GenAI use cases. As
technology leaders realize AI’s pivotal role in their digital-first strategies,
IDC forecasts that investments on GenAI by 2027 will be 26% of the overall AI
spend in the country or a CAGR of 101.6%.
The India
CIO Summit by IDC and Foundry, throughout its 11-year run, is considered
by India’s visionary technology leaders as the most significant event where
they can discuss and collaborate with industry and technology experts and
peers. This year, the event seeks to empower attendees with insights on how
they can further realize the transformative power of AI to significantly
enhance digital innovation, customer experiences, operational efficiencies, and
sustainability to propel forward-thinking governments and digitally driven
organizations toward an AI Everywhere mindset.
“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,” says Vasant Rao,
Managing Director, IDC India and South Asia.
Steven
Frantzen, Head of WW Strategy and Senior VP & Regional Managing Director
(EMEA), IDC who delivered a presentation on Rethinking Digitalization for an
AI-first World says, “Even with economic headwinds and uncertainty in 2024, we
anticipate that global ICT spending will expand by more than 6% (3x of
projected GDP growth), as we enter a new era of accelerated digital innovation,
driven in part by greater investment in automation and generative AI.”
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