IT Spending in India Expected to Grow 11 per cent in 2024: IDC Report
New Delhi, March 14 (IANS) – According to an International Data Corporation (IDC) report released on Thursday, IT spending in India is anticipated to increase by 11 per cent year-on-year in 2024, reaching $44 billion. The report also predicts a Compound Annual Growth Rate (CAGR) of 9.9 per cent, pushing IT spending to exceed $59 billion by 2027.
The software market is expected to exhibit double-digit growth consistently over the forecasted years, as India’s digital economy continues to flourish. GenAI (Generative AI) is poised to play a significant role in accelerating AI adoption in the country, with many leading organizations exploring GenAI use cases.
Vasant Rao, Managing Director of IDC India and South Asia, highlighted the importance of AI investments in India’s digital transformation journey. He noted, “India Inc.’s shift to digital continues unabated as enterprises march aggressively towards an ‘AI Everywhere’ future.”
Despite economic challenges in 2023, Indian enterprises prioritized digital technology investments to enhance customer engagement, launch new products, and improve operational efficiency. The focus was on software, application development, and Cloud migrations to maximize hardware assets and drive revenue growth.
The IDC report projects that by 2027, investments in GenAI will constitute 26 per cent of the overall AI spend in India, reflecting a remarkable CAGR of 101.6 per cent in AI adoption. The growth in AI investments underscores the strategic importance of technology in shaping India’s digital landscape.
With India’s digital economy poised for significant growth in the coming years, the IDC report underscores the pivotal role of IT spending in driving innovation and competitiveness in the country’s technology landscape.
