India Inc’s IT spending expected to grow 6-8% in 2026: Bain & Co

India's enterprises are in the midst of a significant technology spending surge, with IT spending expected to grow 6-8% in 2026, outpacing the 4%–6% increase expected among global peers, according to global consultancy Bain & Company's India Enterprise Technology Report 2026.

“Spending has accelerated over the past 12–18 months and is expected to continue for the next 2–3 years, underscoring a structurally stronger investment cycle. Yet, a clear gap remains between investment and value delivery,” the report said.

Based on insights from more than 250 technology and business leaders across enterprises in India, spanning multiple industry segments, the report captures how India’s technology decision-makers are navigating the next wave of AI-led enterprise technology transformation.

According to the report, Indian enterprises are allocating a significantly higher share of their budgets toward long-term capability building. “Capital expenditure accounts for 50%–60% of technology budgets in India, compared with 20%–30% globally, translating into technology capex that is 2.5–3x higher than that of their global counterparts. These investments are primarily directed toward AI platforms and data modernization (30% of capex), alongside core application modernization (25%), cloud and IT infrastructure (25%), and cybersecurity (20%), reflecting a clear pivot toward strengthening foundational capabilities,” it said.

“At a time when AI is accelerating the pace of change, it is no longer only about modernizing technology stacks or addressing technical debt. Now is the time to go ‘future back’ and reimagine the enterprise by zero-basing processes, redesigning operating models, and consequently architecting an AI and technology real estate that can expedite the journey. Despite record levels of technology investment, many organizations still struggle to realize full value due to misalignment between business and IT, gaps in data and AI foundations, and legacy operating models. The winners will be those that shift to an outcome-led approach, where technology is measured by its impact on the business, not just delivery milestones,” said Sandeep Nayak.

Approximately 40% of 2026 technology budgets are expected to be allocated to change initiatives, with 40%–45% of that spend focused on AI- and data-led transformations, reflecting AI’s growing role in enterprise technology investments. About 60% of CIOs are expected to prioritize high-impact AI roadmaps, alongside application rationalization and data modernization, over the next 12 months. Together, these priorities signal a clear shift toward strengthening core technology foundations, the report said.

Despite the spending surge, the report found that only 15% of business leaders view IT as truly strategic, while 70% rate it as “good, but not great.”