IT spending in India to grow by 11% in 2024: Report

The information technology spending in India is expected to record a double-digit growth in 2024. The spending is estimated to be up by 11.1% from last year’s $124.7 billion to $138.6 billion, as per Gartner’s prediction. 

Within overall IT, the IT services spending is projected to grow the most, up from 10% in 2023 to 13.4% in 2024. Owing to lack of internal talent, Indian businesses are also seeking external partners in fields of artificial intelligence, industry cloud, security, and data analytics – adding to growth of IT services spending in 2024. 

Globally, IT services will grow to 8.7% in 2024 and become the largest segment of IT spending for the first time. This is largely credited to enterprise investing in efficiency and optimisatuon projects. Further, even as organisations invest in emerging technologies like generative artificial intelligence, the spending will be driven by traditional forces like profitability and labour.

“Enterprises continue to find more uses for technology – IT has moved out of the back office, through the front office and is now revenue producing, until there is a plateau for how and where technology can be used in an enterprise, there cannot be a plateau in enterprise IT spending,” said John-David Lovelock, Distinguished VP Analyst at Gartner. 

A survey by Rackspace Technology, in collaboration with Dell and VMware, in December showed that businesses are gearing up to invest in IT in 2024, with a keen focus on artificial intelligence (AI) and cloud transformation.

The 2024 IT Outlook Report, based on responses from 1,420 global IT professionals, highlighted that 63% of organisations plan to adjust their investments in the coming year. AI is expected to steal the spotlight, with 65% recognising its potential for significant positive impact. Cloud adoption is also on the rise, with edge computing, private cloud, and public cloud gaining popularity.