India IT Spending to Grow 2.6% in 2023: Gartner
India IT spending is projected to grow 2.6% in 2023, according to a recent forecast by Gartner, Inc. Even with the looming tensions of global inflation and the weakening rupee, Indian businesses will continue to increase their spending in key segments of information technology next year.
“Inflation has not impacted enterprise spending on technology globally, and India is no exception to this trend,” said Arup Roy, VP Analyst at Gartner. “The headwinds are in favor of technology as businesses realized how going digital can benefit them in the long run. Depending upon the maturity level of the digital enterprise, the spending context may be different for different businesses, but overall technology spending will continue to be on the rise in 2023.”
Gartner analysts are discussing the trends that are impacting the IT market during Gartner IT Symposium/Xpo™, taking place in Kochi through Wednesday.
Gartner forecasts weakening demand for devices in 2023 as device upgrades stabilize (see Table 1).Spending on data center systems will also experience a decline as businesses opt for public cloud services. End-user spending on public cloud in India is forecast to grow 27% in 2023. Except for data center systems and devices, all the other segments of IT spending will experience growth in India in 2023.
Table 1. India IT Spending Forecast (Millions of U.S. Dollars)
|
|
2021 Spending |
2021 Growth (%) |
2022 Spending |
2022 Growth (%) |
2023 Spending |
2023 Growth (%) |
|
Data Center Systems |
3,177 |
14.4 |
3,527 |
11.0 |
3,477 |
-1.4 |
|
Software |
11,245 |
19.9 |
12,625 |
12.3 |
14,356 |
13.7 |
|
Devices |
49,530 |
37.3 |
48,448 |
-2.2 |
47,851 |
-1.2 |
|
IT Services |
19,206 |
15.0 |
20,571 |
7.1 |
22,039 |
7.1 |
|
Communications Services |
24,382 |
5.7 |
24,451 |
0.3 |
24,703 |
1.0 |
|
Overall IT |
107,541 |
22.1 |
109,622 |
1.9 |
112,427 |
2.6 |
Source: Gartner (November 2022)
“As Indian organizations advance in their digital initiatives and maturity, they will need to elevate their cybersecurity focus or face severe business risk. Also, paucity of good quality digital talent and technology/management skills will continue to be some of the top challenges that CIOs in India face in 2023,” said Roy.
CIOs in India will need to be extremely creative about how they source talent, where they source from and how effectively they use those resources.
Gartner’s IT spending forecast methodology relies heavily on rigorous analysis of the sales by over a thousand vendors across the entire range of IT products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.
The Gartner quarterly IT spending forecast delivers a unique perspective on IT spending across the hardware, software, IT services and telecommunications segments. These reports help Gartner clients understand market opportunities and challenges. The most recent IT spending forecast research is available to Gartner clients in “Gartner Market Databook, 3Q22 Update.”
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