Overall digital transformation (DX) spending in India is likely to reach $85 billion by 2026, according to a report by International Data Corporation.
The report shows that about 75 per cent of survey respondents indicated that they plan to spend more than what they have spent for DX initiatives in 2021, and another 20 per cent of the respondents maintain the same level of DX spending as in 2021.
Through tech-enabled digital transformation, Indian organisations expect to reduce costs by increasing efficiency, improving security/risk capabilities, and improving customer experience, said the report.
Top spenders
Manufacturing (discrete and process), professional services, banking, government, retail, and telecommunications are the top industries spending on DX in India. The report further says Indian organisations are gravitating towards the cloud, automation, artificial intelligence (AI), network infrastructure, Internet of Things (IoT), and other advanced technologies to transform organisations digitally.
Neha Gupta, Senior Research Manager, IDC India, said, “Digital transformation has been a buzzword over the last few years among all industries and organisations of all sizes. The purpose of digital transformation is long-term survival and staying relevant by building resilience and adaptability in the organisation.”
Embracing tech
DX is all about embracing the right technologies; combined with people, processes, and operations that give organisations the ability to evolve and respond in the best possible way to unpredictable and dynamic market conditions, she added.
Indian organisations are seeing the real benefits of DX initiatives in terms of revenue generation, time to market, and business agility. As per IDC’s Future Enterprise Resiliency & Spending Survey, Indian organisations are experiencing around one-third of the annual percentage improvement in 2021 across various aspects (revenue, operational efficiency, customer satisfaction, among others) because of DX investments.
The report also said that the current macroeconomic factors may impact both tech buyers and tech suppliers globally. As per IDC’s research, Indian organisations are not immune to these macroeconomic trends and thus strive to be proactive than reactive.