Indian IT spending (spending by enterprises, service providers, and consumers) is projected to grow by 4.7 percent in 2023 to $86.7 billion in constant currency, according to IDC.
IT spending by Indian enterprises and service providers is projected to grow 7.8 percent in 2023, albeit more slowly than in 2022.
Consumer IT spending (dominated by consumer purchases of devices such as mobiles, tablets, PCs, wearables, and peripherals) saw a drastic decline in Q4 2022 and turned cautious due to rising prices, pulling the growth to 2.1 percent in 2023.
Enterprises’ concerns impacting IT budgets are inflation-driven price increases, staffing shortages, IT supply chain constraints – especially on the networking side, and the impact of the weakening global economy on expected business revenues.
“Rising inflation and currency devaluations made technology investments costlier. Enterprises focused on immediate needs by either stretching or prioritizing budgets. But with worries around weakening global macroeconomic situation, spending growth has moderated,” says Vinay Gupta, Research Director, IT Spending Guides, IDC Asia/Pacific.
Domestic IT Services spending is projected to grow 8.7 percent in 2023, driven by enterprises’ need to increase customer engagement and satisfaction, launch new products/services, and improve operational efficiency to drive revenue growth and profitability.
Software spending is projected to grow 15 percent in 2023, driven by higher adoption of cloud-based solutions. Automation-related platforms and tools, security, workplace solutions (collaboration, content management, virtual meeting, unified communications), data and analytics initiatives/projects, infrastructure, and IT operation optimization initiatives are still focused areas for enterprises despite the moderating economic growth.
