India IT spending to increase by 5.5% in FY22: Gartner

The IT sector is expected to touch US$ 105.2 billion in 2022 which indicates a 5.5% increase when compared to 2021, according to a Gartner report.

January 25, 2022

Worldwide, IT projects have increased 5.1% more as compared to 2021.

Cloud-based software segment in India is expected to contribute 15% growth.

The IT sector spending growth is predicted to account for US$1.3 trillion i.e. 7.9% higher than 2021.

By 2025, organizations will increase their dependency on external service providers due to the increasing urgency and an accelerated pace of change.

The IT sector in India is expected to touch US$ 105.2 billion in 2022 which indicates a 5.5% increase when compared to 2021. Worldwide, IT projects have increased 5.1% more as compared to 2021 accounting for the total spend of US4.5 trillion in FY22. The economic recovery in the digital sector is expected to see an upward trajectory in technology investments despite the current Omicron scare prevailing in the country, according to a Gartner report. 

With increase in investments, Indian CIO’s are facing challenges like skills shortage, which has increased their dependence on external service partners. This will bolster the spending on the IT service segment, forecast to increase by 9% as compared to 2021.

Cloud-based software segment in India is expected to contribute 15% growth. According to Gartner, by 2025 organizations will increase their dependency on external service providers due to the increasing urgency and an accelerated pace of change. With greater digital ambitions, CIOs need a comprehensive internal workforce with strong capabilities. 

The IT sector (including consulting and managed services) will have the second highest spending growth in 2022 amounting to US$1.3 trillion which is 7.9% higher than the previous year. Technology and business consulting is also expected to grow 10% in 2022, according to Gartner. 

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