IT spending in India is predicted to total $101.8 billion in 2022, an increase of 7 per cent from 2021, according to the latest forecast by Gartner.
“The digital transformation trajectory that began as a pandemic response is here to stay for the next few years,” said Arup Roy, Research Vice President at Gartner. “India has experienced one of the fastest recoveries despite being one of the worst-hit regions in the second wave of the pandemic in early 2021. In 2022, CIOs in India will build on renewed interest in technology from the business to gain funding for new IT projects.”
Indian CIOs are likely to increase their spending towards projects that drive innovation and modernise legacy systems. “Hiring a workforce that can deliver on these needs will also be a key priority,” the research and analyst firm said.
Next year, Indian CIOs are prioritising a move away from rigid and monolithic ways of doing business to a more compatible business and IT architecture where they will better respond to disruptions, Gartner said in a release.
Software growth
In 2022, all segments of IT spending in India are expected to grow, with software emerging as the highest growing segment. Spending on software is forecast to total $10.5 billion in 2022, up 14.4 per cent from 2021.
While experiencing a slower growth rate than 2021, spending on software in 2022 is forecast to be nearly double what it was pre-pandemic. As hybrid work adoption increases in the country, there will be an uptick in spending on devices in 2022, reaching $44 billion, an increase of 7.5 per cent from 2021.
“The growth in devices is a combination of two components – hybrid work and pent-up demand from 2020 for device upgrades,” said Roy. “Spending on devices will make up 43 per cent of the total IT spending next year.”
Gartner said its IT spending forecast methodology relies heavily on rigorous analysis of sales by thousands of vendors across the entire range of IT products and services.
