IT spending in India is expected to hit $101.8 billion in 2022, an increase of 7% over 2021, according to the latest forecast released by Gartner on Wednesday. Analysts at the technology research and consulting firm estimate the surge in spending to be largely driven by the digital-first approach that businesses are betting on. Enterprises across segments are equipping themselves with new-age technologies to better customer experience. “The digital transformation trajectory that began as a pandemic response is here to stay for the next few years,” says Arup Roy, research vice president at Gartner. Indian CIOs are likely to increase their spending towards projects that drive innovation and in modernising legacy systems. “In 2022, CIOs in India will build on renewed interest in technology from the business to gain funding for new IT projects,” adds Roy.
While going digital was initially about additional capability for supporting daily operations, it has become central to reshaping business strategies. Industry experts say local enterprises will continue to accelerate digital adoption and focus on cyber security and automation. Cloud computing in India is seeing adoption levels at an unprecedented scale, especially investments in hybrid Cloud, industry body Nasscom said in a study published earlier this year.
“Next year, Indian CIOs are prioritising a move away from rigid and monolithic ways of doing business to a more composable business and IT architecture where they will be able to better respond to disruptions,” according to the report.
In 2022, all segments of IT spending in India are expected to grow, with software topping the charts. Spending on software is forecast to reach $10.5 billion in 2022, up 14.4% from 2021. While experiencing a slower growth rate than 2021, spending on software in 2022 is forecast to be nearly double of what it was pre-pandemic.
As hybrid work adoption increases in the country, there will be an uptick in spending on devices, too, in 2022, at $44 billion, a 7.5% increase over 2021. “The growth in devices is a combination of two components – hybrid work and pent-up demand from 2020 for device upgrades,” says Roy. “Spending on devices will make up 43% of total IT spending next year.”