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The IT spending in India is likely to grow at a compound annual growth rate of 9.9 per cent over the coming years to cross the $59 billion mark by 2027, as the software market consistently showing double digit growth across the forecasted years, International Data Corporation (IDC) said on Thursday.
The IT spending in India for 2024 is expected to grow by 11 per cent year-on-year to reach $44 billion in 2024, according to market research and analysis firm IDC.
While speaking at India CIO Summit organised by IDC, the company’s Head of WW Strategy and Senior Vice President & Regional Managing Director for EMEA Steven J Frantzen said Generative AI (GenAI) will continue to accelerate AI adoption in India, with more leading organisations exploring or investing in GenAI use cases.
“Even with economic headwinds and uncertainty in 2024, we anticipate that global ICT spending will expand by more than 6 per cent (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,” Frantzen said.
According to IDC, despite economic headwinds and uncertainty, Indian enterprises in 2023 continued to invest in digital space to increase customer engagement and satisfaction, launch new products and services, and improve operational efficiency to drive revenue growth and profitability.
The enterprises 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.
“India Inc 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,” Vasant Rao, Managing Director, IDC India and South Asia, said.
