India’s ICT Spending is set to grow by over 10 percent to $91 billion in 2021 and expected to reach $111 billion by 2024, according to IDC.
The revival of economic activities across India together with growing consumer demand played a key role in expediting this growth.
The accelerated push towards going digital was due to a change in focus of enterprises, be it their business model, or to create digital products and services and deliver digital-first experience. Major industries have reached operations at optimal levels as demand picked up owing to an improved supply throughout the end of last year and into 2021.
Education is expected to show the highest bounce back in 2021 owing to a continued focus on a hybrid operating model. Private schools and professional certification courses are changing the methods of learning due to the pandemic as demand for specialized skills is on the rise. This is supported by the adoption of e-Learning solutions and e-Certifications provided by many organizations and institutions.
Personal and Consumer Services has been at the forefront as lockdown started to lift by end of 2020. Changing the way for a consumer to avail services has quickly created more opportunities for spending on technology since new rules and regulations make it important to avoid a rise in infection rates.
The banking and telecommunications industry contributes the highest, around 14 percent of the overall ICT Spend in 2021. The banking sector is expected to grow at 7.8 percent in 2021 and is mainly driven by increased ICT investments in redesigned customer experience (CX), business continuity, and cybersecurity.
Spend in the telecommunication industry is expected to grow at 9.1 percent in 2021 as India continues to be a hub for innovation and operators, even though cost-constrained, will focus on bringing in cost transformations in operations.