IT spending in India to reach USD 93 billion in 2021: Gartner

IT spending in India is projected to total USD 93 billion in 2021, an increase of 7.3% from 2020, according to Gartner. The growth in India will be lower than the global average, as worldwide IT spending is projected to total USD 4.1 trillion in 2021, an increase of 8.4% from 2020.

The source of funds for new digital business initiatives will more frequently come from business departments outside IT and charged as a cost of revenue or cost of goods sold (COGS). “IT no longer just supports corporate operations as it traditionally has, but is fully participating in business value delivery,” said John-David Lovelock, distinguished research vice president at Gartner. “Not only does this shift IT from a back-office role to the front of business, but it also changes the source of funding from an overhead expense that is maintained, monitored and sometimes cut, to the thing that drives revenue.”

Table 1: Worldwide IT Spending Forecast (Millions of U.S. Dollars)

All IT spending segments are forecast to have positive growth through 2022 (see Table 1). The highest growth will come from devices (14%) and enterprise software (10.8%) as organizations shift their focus to providing a more comfortable, innovative and productive environment for their workforce.

Table 2: India IT Spending Forecast (Millions of U.S. Dollars)

Cloud is expected to drive majority of the expected software growth in India during 2021. (See Table 2). “The Indian economy is observing a slow but steady growth trajectory this year. Additionally, the government relaxation of foreign investment in certain sectors such as insurance, infrastructure, telecommunications will provide additional funds for business and IT leaders to accelerate their digital transformation journey,” said Naveen Mishra, senior research director at Gartner.

Although optimization and cost savings efforts won’t disappear simply because there’s more economic certainty in 2021, the focus for CIOs through the remainder of the year will be completing the digital business plans that are aimed at enhancing, extending and transforming the company’s value proposition.

“Last year, IT spending took the form of a ‘knee jerk’ reaction to enable a remote workforce in a matter of weeks. As hybrid work takes hold, CIOs will focus on spending that enables innovation, not just task completion,” said Lovelock.