Spending on IT services in India will increase at 10.7 percent to $18 billion in 2021, according to a Gartner report.
“The surge in remote working, need for business continuity planning and increased focus towards digitalization has increased the demand for IT services,” said Arup Roy, research vice president at Gartner.
“In 2020, spending on IT services slowed, but did not decline. While some digitalization projects were stalled due to IT budget contractions and economic uncertainties in 2020, 2021 is experiencing renewed interest in rapid digitalization from end-user organizations.”
The consulting segment, which will be the largest in terms of end-user spending in 2021, is forecast to total $4.6 billion this year, up from $4.1 billion in 2020.
Hardware support, which will be the only segment where spending will decline in 2021, will drop 2.8 percent as end-user organizations reduce their spending on client device support and data center support systems.
In 2021, end user spending on IaaS will total $1.6 billion, growing 57 percent as compared to 2020. This will be the highest registered growth rate within all segments of IT services spending in India.
While IaaS is expected to contribute to 9 percent of the total spending on IT services in the country in 2021, by 2025, spending on IaaS is forecast to make up 22.7 percent of the total spending on IT services in India, Gartner said.