Gartner, a leading research and advisory company, has released a press release highlighting its latest forecast on India's IT spending. According to the report, India's IT spending is expected to experience significant growth in 2024 after a decline in 2023. The projections indicate that investments in artificial intelligence (AI) and generative AI (GenAI) will play a crucial role in driving this growth. Additionally, the press release sheds light on the impact of digital priorities on software and IT services spending in India.
IT Spending Projections:
Gartner predicts that India's IT spending will reach a total of $124.6 billion in 2024, representing a substantial increase of 10.7% compared to 2023. Although the full impact of AI and GenAI on IT spending levels will not be evident until 2025, investments in these technologies will contribute to growth in the coming years. Naveen Mishra, VP and Team Manager at Gartner, explains that Indian organizations are expected to invest in AI and automation to enhance operational efficiency and address the shortage of IT talent.
Impact of Digital Priorities on Software and IT Services Spending:
The adoption of digital technologies such as AI, machine learning, and secure access service edge (SASE) is expected to drive the implementation of cloud services in Indian organizations. This, in turn, will lead to substantial growth in both software and IT services spending. Mishra highlights that the lack of internal skills within Indian businesses will further contribute to the growth of IT services spending in 2024.
Resurgence in Devices Spending:
Despite facing a sluggish phase in 2022 and 2023, devices spending in India is projected to witness a strong resurgence in 2024, with a year-over-year growth of 10.1%. Mishra attributes this double-digit growth to Indian consumers' willingness to pay a higher price for better experiences when upgrading to new smartphones.
The Importance of AI Ambition and AI-Ready Scenarios:
As GenAI continues to present unique opportunities for organizations, CIOs and IT leaders are urged to define their organization's AI ambition and develop AI-ready scenarios. This involves examining the opportunities and risks associated with using GenAI in different areas such as the back office, front office, new products and services, and new core capabilities. Establishing lighthouse principles aligned with the organization's values, making data AI-ready, and implementing AI-ready security are essential steps for organizations to embrace generative AI effectively.
Gartner's latest forecast highlights the positive outlook for India's IT spending in 2024, with a projected growth of 11%. The increased investments in AI and automation, coupled with the adoption of digital technologies, are expected to drive this growth. Indian organizations are recognizing the importance of embracing these technologies to improve operational efficiency and address talent shortages. As the IT landscape continues to evolve, organizations must define their AI ambitions and prepare themselves for the transformative power of AI and GenAI. By doing so, they can navigate the future with confidence and leverage the full potential of these technologies to drive success.
Source: Gartner (November 2023)