India’s IT spending is projected to grow 11.2 percent to $160 billion in 2025, driven partly by demand for AI (artificial intelligence), Gartner report said.
Indian CIOs are expected to allocate budgets for GenAI beyond initial trials, with an emphasis on practical applications. However, expectations for GenAI’s capabilities may moderate as the technology matures.
CIOs are likely to boost investments in cybersecurity, business intelligence, and data analytics as top priorities in 2025. Growth in spending in areas such as GenAI, cyber security and business intelligence and data analytics will be 33 percent, 32 percent and 31 percent, respectively, Naveen Mishra, VP Analyst at Gartner, said.
Growth in spending on data center systems, devices and Software will be driven by spending on AI.
Software spending is projected to grow by 17 percent in 2025 to $20.94 billion from $17.9 billion in 2024, driven by demand for GenAI-enabled solutions in CRM, email, and analytics platforms. Over half of application software with GenAI is anticipated to come with a price premium.
IT services spending is expected to increase by 11.4 percent in 2025 to $33.5 billion from $30 billion in 2024, with cloud, application, and consulting services leading the charge.
Spending on data center systems is forecasted to reach $4.7 billion in 2025 from $4.3 billion in 2024, as companies invest in infrastructure to support AI integration. Regulatory requirements and increased demand for data storage are driving growth in this area.
Spending on devices such as PCs, laptops, smartphones, etc will reach $63 billion in 2025 from $55.9 billion in 2024. There will be significant demand for AI-capable devices in India next year from leading enterprises.
Spending on Communications will be reaching $37.6 billion in 2025 from $35.7 billion in 2024.
Rajani Baburajan
