India’s IT spending for the year 2024 is forecasted to increase 11 percent to $44 billion, according to IDC report.
Indian enterprises continued their investment in digitalization efforts, aiming to enhance customer engagement, introduce new products and services, and optimize operational efficiency. A significant portion of their IT budgets was allocated towards software, application development, and cloud migrations, demonstrating a strategic approach to maximizing existing hardware assets and extending refresh cycles.
IDC anticipates a compounded annual growth rate (CAGR) of 9.9 percent in IT spending, with projections surpassing the USD $59 billion mark by 2027. The software market is expected to consistently exhibit double-digit growth throughout the forecasted period, IDC report on IT spending said.
Notably, Generative AI (GenAI) is poised to expedite AI adoption across India, with a growing number of leading organizations exploring or investing in GenAI use cases. IDC forecasts that by 2027, investments in GenAI will comprise 26 percent of the overall AI expenditure in the country, representing a staggering CAGR of 101.6 percent.
Vasant Rao, Managing Director of IDC India and South Asia, remarked, “India Inc.’s 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.”
Steven Frantzen, Head of WW Strategy and Senior VP & Regional Managing Director (EMEA) at IDC, emphasized the significance of embracing digitalization and AI in navigating the evolving business landscape.
“Even amidst economic headwinds and uncertainties in 2024, we anticipate a substantial expansion in global ICT spending, fueled by accelerated digital innovation and greater investment in automation and generative AI,” Steven Frantzen said.
