Indian businesses will continue to increase their spending in key segments of information technology next year even with the looming tensions of global inflation and the weakening rupee
Information technology (IT) spending in India is projected to grow 2.6% in 2023, according to a recent forecast by Gartner, Inc. Indian businesses will continue to increase their spending in key segments of information technology next year even with the looming tensions of global inflation and the weakening rupee.
“Inflation has not impacted enterprise spending on technology globally, and India is no exception to this trend,” said Arup Roy, VP Analyst at Gartner. “The headwinds are in favor of technology as businesses realized how going digital can benefit them in the long run. Depending upon the maturity level of the digital enterprise, the spending context may be different for different businesses, but overall technology spending will continue to be on the rise in 2023.”
As device upgrades stabilize, Gartner forecasts weakening demand for devices in 2023. As businesses opt for public cloud services, spending on data center systems will also experience a decline. In India, end-user spending on public cloud is forecast to grow 27% in 2023. All the other segments of IT spending, except for data center systems and devices, will experience growth in India in 2023.
Despite software segment’s projected growth of 13.7, it is still a sharp drop from 19.9% in 2021. Roy states several factors contributing to the decline. “Economy softening, geopolitical conflicts, no respite in the supply chain constraint, and the ongoing talent shortage contribute to the same,” he stated.
“As Indian organizations advance in their digital initiatives and maturity, they will need to elevate their cybersecurity focus or face severe business risk. Also, paucity of good quality digital talent and technology/management skills will continue to be some of the top challenges that CIOs in India face in 2023,” said Roy.
CIOs in India will need to be extremely creative about how they source talent, where they source from and how effectively they use those resources.
Also read: Technology is always going to be in the game
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