Gartner Forecasts India IT Spending to Grow 2.6% in 2023

by | Nov 15, 2022

Money, cash, finance, IT Spending, India IT Spending 2023

KOCHI, India., November 14, 2022 — India IT spending is projected to grow 2.6% in 2023, according to a recent forecast by Gartner, Inc. Even with the looming tensions of global inflation and the weakening rupee, Indian businesses will continue to increase their spending in key segments of information technology next year.

“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.”

Gartner analysts are discussing the trends that are impacting the IT market during Gartner IT Symposium/Xpo™, taking place in Kochi through Wednesday.

Gartner forecasts weakening demand for devices in 2023 as device upgrades stabilize (see Table 1). Spending on data center systems will also experience a decline as businesses opt for public cloud services. End-user spending on public cloud in India is forecast to grow 27% in 2023. Except for data center systems and devices, all the other segments of IT spending will experience growth in India in 2023.

Table 1. India IT Spending Forecast (Millions of U.S. Dollars)

  2021 Spending 2021

Growth (%)

2022 Spending 2022

Growth (%)

2023 Spending 2023

Growth (%)

Data Center Systems 3,177 14.4 3,527 11.0  

3,477

 

-1.4

Software 11,245 19.9 12,625 12.3 14,356 13.7
Devices 49,530 37.3 48,448 -2.2 47,851 -1.2
IT Services 19,206 15.0 20,571 7.1 22,039 7.1
Communications Services 24,382 5.7 24,451 0.3  

24,703

 

1.0

Overall IT 107,541 22.1 109,622 1.9 112,427 2.6

Source: Gartner (November 2022)

“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.

Gartner’s IT spending forecast methodology relies heavily on rigorous analysis of the sales by over a thousand vendors across the entire range of IT products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.

The Gartner quarterly IT spending forecast delivers a unique perspective on IT spending across the hardware, software, IT services and telecommunications segments. These reports help Gartner clients understand market opportunities and challenges. The most recent IT spending forecast research is available to Gartner clients in “Gartner Market Databook, 3Q22 Update.”

A more detailed analysis of the outlook for global IT spending is available in the Gartner webinar “IT Spend Forecast, 3Q22: Is IT Spending Recession Proof?”  Learn about the top priorities for CIOs and technology executives in the 2023 CIO Agenda.

See also: Gartner says IT Spending in India to Decline by 8.4%; forecasts 6% Growth in 2021

Share This Article!

Brian Pereira
Brian Pereira
Brian Pereira is an Indian journalist and editor based in Mumbai. He founded Digital Creed in 2015. A technology buff, former computer instructor, and software developer, Brian has 29 years of journalism experience (since 1994). Brian is the former Editor of CHIP India, InformationWeek India and CISO Mag. He has served India's leading newspaper groups: The Times of India and The Indian Express. Presently, he serves the Information Security Media Group, as Sr. Director, Editorial. You'll find his most current work on CIO Inc. During his career he wrote (and continues to write) 5000+ technology articles. He conducted more than 450 industry interviews. Brian writes on aviation, drones, cybersecurity, tech startups, cloud, data center, AI/ML/Gen AI, IoT, Blockchain etc. He achieved certifications from the EC-Council (Certified Secure Computer User) and from IBM (Basics of Cloud Computing). Apart from those, he has successfully completed many courses on Content Marketing and Business Writing. He recently achieved a Certificate in Cybersecurity (CC) from the international certification body ISC2. Follow Brian on Twitter (@creed_digital) and LinkedIn. Email Brian at: [email protected]
Recommended Posts
The First 90 Days Are Crucial for the CISO and CIO

This book arms you with insights into crafting a robust 90-day plan, and you’ll be well-equipped to catapult into CIO or CISO roles successfully. Beyond technical proficiency, the book instills survival skills, ensuring longevity and helping you prevent burnout in these pivotal positions.

Similar Articles