IT spending in India to reach $93bn in 2021

New Delhi, Apr 7 (Bureau) IT spending in India is projected to total USD 93 billion in 2021, an increase of 7.3 per cent from 2020, according to research firm Gartner. The growth in India will be lower than the global average, as worldwide IT spending is projected to total USD 4.1 trillion in 2021, clocking an increase of 8.4 per cent from 2020, Gartner said in a statement.

The source of funds for new digital business initiatives will more frequently come from business departments outside IT and charged as a cost of revenue or cost of goods sold (COGS), it added. The IT spending in the country is expected to further grow to USD 98.5 billion in 2022. IT no longer just supports corporate operations as it traditionally has, but is fully participating in business value delivery, Gartner Research Vice President John-David Lovelock said.

‘Not only does this shift IT from a back-office role to the front of the business, but it also changes the source of funding from an overhead expense that is maintained, monitored and sometimes cut, to the thing that drives revenue,” Lovelock added. Spending on Data Centre Systems is expected to touch USD 3.5 billion (up 4.3 per cent from 2020), while that on Enterprise Software is expected to be USD 7.7 billion (up 13.3 per cent) and Devices at USD 34.6 billion (up 7.7 per cent). IT services is forecast to log USD 16.7 billion (up 8.9 per cent), and Communications Services USD 30.1 billion (up 4.9 per cent) spending in 2021. ‘Last year, IT spending took the form of a ‘knee jerk reaction to enable a remote workforce in a matter of weeks. As hybrid work takes hold, CIOs will focus on spending that enables innovation, not just task completion,” Lovelock said.