IT spending in India to grow 6% as CIOs support hike in IT budget

IT spending in India is forecast to increase 6 percent to $81.9 billion in 2021, according to the latest report from Gartner.

Data center systems spending will record 8.3 percent growth in 2021.

Spending on enterprise software will grow at 13.6 percent in 2021.

Devices including smartphones and laptops will grow at 3.8 percent in 2021.

IT services spending will grow at 8 percent in 2021.

Communication services will grow at 4.8 percent.
India IT spending forecast for 2021
IT spending in 2020 is expected to drop 8.4 percent to $79.3 billion, the IT spending report from Gartner indicated.

“Organizations that were digitally sound in a pre-pandemic world could contain the impact on their business. The pandemic situation was a wake-up call for many organizations to relook and revive their IT strategies and increase their spending on IT in 2021,” said Arup Roy, research vice president at Gartner.

In 2020, data center systems segment spending dropped 1.2 percent.

The devices business dropped 26 percent in 2020.

Contrary to other markets where spending declined across all segments, CIOs in India continued to spend on enterprise software, IT services and communication services in 2020.

Spending on enterprise software is expected to grow 7 percent in 2020.

Spending on IT services is expected to grow 3.7 percent in 2020.

Spending on communication services in 2020 is expected to grow 4.9 percent.

In 2021, IT spending growth will return as CIOs start positioning IT as not just a growth enabler, but a survival necessary strategy. While all segments will experience an increase in spending, the enterprise software segment will achieve the highest growth of 13.6 percent, followed by data center systems at 8.3 percent.

The Digital India mission will turn a new leaf in 2021 as enterprises across all sectors start spending more on IT. The pandemic provided an opportunity for Indian CIOs to test long-pending projects such as remote working, which delivered on-promise for many enterprises and helped them stay afloat in the most testing times.

In 2021, the focus of IT spending will be in becoming a true digital business. CIOs in India will direct their IT spending budgets towards accelerating digitization efforts. Spending is expected to increase on technologies including advanced analytical solutions, access management, encryption software, desktop as a service, cloud, and hyperautomation enabling systems.

IT solutions such as robotic process automation (RPA), artificial intelligence (AI), machine learning (ML), and digital commerce will also experience an increase in spending.