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India’s tech spending to be ramped up by 8.7% in 2022: Report

India’s tech spending to be ramped up by 8.7% in 2022: Report
Photo Credit: Pixabay
14 Feb, 2022
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Despite the potential impacts of the Omicron variant, economic recovery with high expectations for digital market prosperity will continue to boost technology investments. A new report by Forrester — Asia Pacific Tech Market Outlook By Country For 2021 And 2022 — has claimed that Indian tech spending in 2022 will grow 8.7%, one of the highest growth rates in the Asia Pacific region.  

The report also claimed that following 2021’s spending spree, growth in hardware and communication equipment will dip from 6% or 7% in 2021 to 4% or 5% in 2022. Tech consulting (9.8%) and tech outsourcing (11.2%) will continue their rapid growth in 2022 as tech leaders resume transformation initiatives and reboot outsourcing or IT consulting deals.  

Interestingly, Gartner has recently pegged the IT spending in India at $105.2 billion in 2022, which is an increase of 5.5% from 2021. The worldwide IT spending is projected to total $4.5 trillion in 2022, an increase of 5.1% from 2021.   

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“We expect demand to be high in infrastructure modernisation, business process automation, and tech strategy consulting services. We also expect Indian firms to seek the help of third-party IT service providers to set up agile development, DevOps, or continuous integration and delivery capabilities,” as stated in the research report. 

“India’s recent privatisation reform plan in a range of sectors including aviation and banking should provide the funds needed to rebuild the economy and bump up infrastructure spending. This move towards privatisation has added to the bullish mood of tech investment in both the public and private sectors,” it said.  

In addition, Forrester has prepared another new report titled “Indian CIOs Must Make Future Fitness A Strategic Imperative”, which shows that the intent to spend on IT across corporate India last year rose faster than the global average, with firms focusing on pragmatism, revenue growth, and market performance.  

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In a survey, 53% of Indian purchase influencers said that their firm spent more on tech products and services in 2020 than in 2019, while 75% said their firm would spend more in 2021 than in 2020. The research firm claimed that this trend underscores a growing awareness among tech leaders of the importance of digitisation.