July 20, 2023
Enterprise software spending is expected to witness a 14.6% annual growth
The issue of talent shortages is expected to drive an 8% annual growth in IT services spending in India
On a global scale, Information Technology (IT) spending is projected to reach US$ 4.7 trillion in 2023
The software segment is expected to experience double-digit growth in 2023 as organizations increase utilization and reallocate spending
IT spending in India is projected to reach US$ 112.2 billion this year, surpassing the previous forecast from last quarter, according to a report by Gartner.
As per the report, Indian Chief Information Officers (CIOs) are keen on investing in initiatives that enhance employee productivity and customer experience (CX). As a result, enterprise software spending is expected to witness a 14.6% annual growth.
Additionally, talent shortages are expected to drive an 8% annual growth in IT services spending in India. However, while generative artificial intelligence (AI) is a crucial focus for many business and IT leaders, its significant impact on IT spending levels is yet to be seen. Over the longer term, generative AI is predicted to be primarily incorporated into enterprises through existing spending.
On a global scale, IT spending is projected to reach US$ 4.7 trillion in 2023, reflecting a 4.3% increase from 2022. The report further mentioned that as digital business transformations evolve, IT projects are shifting their focus from external-facing deliverables like revenue and customer experience to more inward-facing endeavours centred around optimization.
The software segment is expected to experience double-digit growth in 2023 as organizations increase utilization and reallocate spending to core applications and platforms that drive efficiency gains, such as enterprise resource planning (ERP) and customer relationship management (CRM) applications. Vendor price increases are also contributing to the growth of software spending.
Source: Economic Times