IANS | 15 Mar, 2024
IT spending in India for 2024 is expected to grow 11 per cent
year-on-year (YoY), reaching $44 billion, an International Data
Corporation (IDC) report said on Thursday.
As India’s digital
economy continues to thrive in 2024 and beyond, IDC expects IT spending
in the country to accelerate at a Compound Annual Growth Rate (CAGR) of
9.9 per cent over the coming years to cross the $59 billion mark in
2027, with the software market consistently showing double digit growth
across the forecasted years.
Generative AI (GenAI) will continue
to accelerate AI adoption in India with more leading organisations
exploring or investing in GenAI use cases.
As technology leaders
realise AI’s pivotal role in their digital-first strategies, the report
forecasts that investments on GenAI by 2027 will be 26 per cent of the
overall AI spend in the country or a CAGR of 101.6 per cent.
“India
Inc.'s shift to digital continues unabated as enterprises march
aggressively towards an ‘AI Everywhere’ future. We can clearly see this
in the growth of AI investments from Indian enterprises,” said Vasant
Rao, Managing Director, IDC India and South Asia.
In 2023, despite
economic headwinds and uncertainty, Indian enterprises continued to
invest in digital technology to increase customer engagement and
satisfaction, launch new products and services, and improve operational
efficiency to drive revenue growth and profitability.
“They
allocated their budgets mainly to software, application development and
Cloud migrations, a reflection of their judiciousness to make their
hardware assets work longer and elongating refresh cycles,” the report
noted.