Tech

IT spending in India to grow 11% , reach USD 44 billion in 2024: Report

Spending in the Information Technology in India for 2024 is expected to grow 11 per cent year-on-year, reaching USD 44 billion in 2024, according to global market intelligence and advisory services provider International Data Corporation (IDC).

This was presented today by IDC to Chief Information Officers and senior IT leaders from across India during the thirteenth annual edition of the India CIO Summit themed ‘The Future of IT: Rethinking Digitalization for an AI Everywhere World.’

In 2023, despite economic headwinds and uncertainty, Indian enterprises continued to invest in digital to increase customer engagement and satisfaction, launch new products and services, and improve efficiency to drive revenue growth and profitability.

At its India CIO Summit, themed ‘The Future of IT: Rethinking Digitalization for an AI Everywhere World’, the advisory services provider said Indian enterprises allocated their budgets mainly to software, application development and cloud migrations.

“(It is) a reflection of their judiciousness to make their hardware assets work longer and elongating refresh cycles,” said IDC.

As India’s digital economy continues to thrive in 2024 and beyond, IDC expects IT spending in India to accelerate at a compound annual growth rate (CAGR) of 9.9 per cent over the coming years to cross the USD 59 billion mark in 2027, with the software market consistently showing double-digit growth.

It also said Generative AI (GenAI) will continue to accelerate AI adoption in India with more leading organizations exploring or investing in its use cases.

As technology leaders realise AI’s role in their digital-first strategies, IDC forecasts that investments in GenAI by 2027 will be 26 per cent of the overall AI spend in the country or a CAGR of 101.6 per cent.

This year, the CIO event sought to empower attendees with insights on how they can further realize the transformative power of AI to enhance digital innovation.

“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,” said Vasant Rao, Managing Director, IDC India and South Asia.

Steven Frantzen, Head of WW Strategy and Senior VP and Regional Managing Director (EMEA), IDC, who delivered a presentation on digitalization for an AI world said, “Even with economic headwinds and uncertainty in 2024, we anticipate that global ICT spending will expand by more than 6 per cent (3x of projected GDP growth), as we enter a new era of accelerated digital innovation, driven in part by greater investment in automation and generative AI.”

ANI

Ani service

Recent Posts

Pak: Mahrang Baloch condemns killing of brother of forced-disappeared student leader

Prominent Baloch activist Mahrang Baloch took to social media platform X to denounce the targeted…

5 hours ago

India, New Zealand vow joint action against terrorism

Prime Minister Narendra Modi and his New Zealand counterpart Christopher Luxon reaffirmed their commitment to…

6 hours ago

India raises issue of anti-India activities of SFJ in US during meeting with Tulsi Gabbard

India has raised issue of anti-India activities conducted by banned Khalistani organisation Sikhs for Justice…

8 hours ago

India, New Zealand to formulate agreement for mobility of skilled workers: PM Modi

Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon held a bilateral meeting…

9 hours ago

Defence Minister Rajnath Singh, US Intelligence Chief Tulsi Gabbard hold talks in Delhi

Defence Minister Rajnath Singh and the US Director of National Intelligence Tulsi Gabbard met and…

10 hours ago

PM Modi holds bilateral meeting with visiting New Zealand PM Luxon

PM Narendra Modi and Prime Minister of New Zealand Christopher Luxon held a bilateral meeting…

11 hours ago