IT spending in India to rise 5.5% to $105.2 billion says Gartner
Information Technology (IT) spending in India is projected to touch $105.2 billion in 2022, an increase of 5.5 per cent from 2021, according to a forecast by research firm Gartner.
Worldwide IT spending is projected to total $4.5 trillion in 2022, an increase of 5.1 per cent from 2021. Despite the potential impacts of the Omicron variant, economic recovery with high expectations for digital market prosperity will continue to boost technology investments, says the report.
2022 is a growth year as Indian CIOs (Chief Information Officer) accelerate their long-term digital initiatives, despite the ongoing Omicron scare in India, said Naveen Mishra, senior research director at Gartner.
“Gartner’s 2022 Indian CIO & IT leader survey indicates increasing investment in artificial intelligence/ machine learning capabilities, business intelligence and analytics, and digital business solutions,” he added.
With these investments, like their global peers, Indian CIOs’ will also be challenged with skills shortage, leading to increasing dependence on external services partners. This will bolster the spending on the IT service segment, forecast to increase by 9 per cent as compared to 2021.
Cloud-based software consumption will contribute towards the 15 per cent growth in the software segment in India.
Through 2025, organizations will increase their reliance on external consultants as the greater urgency and accelerated pace of change widen the gap between organizations’ digital business ambitions and their internal resources and capabilities, according to Gartner.
Global scenario
Gartner forecasts that the worldwide IT services segment, which includes consulting and managed services, is expected to have the second highest spending growth in 2022, reaching $1.3 trillion, up 7.9 per cent from 2021. Business and technology consulting spending, specifically, is expected to grow 10 per cent in 2022.
John-David Lovelock, research vice president at Gartner said that 2022 is the year that the future returns for the CIO.
“They are now in a position to move beyond the critical, short-term projects over the past two years and focus on the long-term,” he added.