India IT spending to grow at 5.5% in 2022: Gartner
- IBEF
- January 25, 2022
According to Gartner, IT investment in India is expected to reach US$ 105.2 billion in 2022, up 5.5% YoY. In 2022, global IT investment is expected to reach US$ 4.5 trillion, up 5.1% from 2021. Despite the potential effects of the Omicron variant, it was emphasised that the economic recovery, coupled with high expectations for digital market success, will continue to drive technological investments.
In 2022, the IT services market, which includes consultancy and managed services, is predicted to increase at the second-fastest rate, reaching US$ 1.3 trillion, up 7.9% from 2021. In 2022, spending on business and technology consulting is predicted to increase by 10%.
John-David Lovelock, research vice president at Gartner said, “2022 is the year that the future returns for the CIO.” “They are now in a position to move beyond the critical, short-term projects over the past two years and focus on the long term. Simultaneously, staff skills gaps, wage inflation and the war for talent will push CIOs to rely more on consultancies and managed service firms to pursue their digital strategies."
Naveen Mishra, senior research director at Gartner said, “2022 is a growth year as Indian CIOs accelerate their long-term digital initiatives, despite the ongoing Omicron scare in India.” “Gartner’s 2022 Indian CIO & IT leader survey indicates increasing investment in artificial intelligence/ machine learning capabilities, business intelligence and analytics, and digital business solutions."
With these investments, Indian CIOs, like their worldwide counterparts, will face skill shortages, leading to increased reliance on external service providers. This will boost IT service spending, which is expected to increase by 9% in 2021 compared to 2021. In 2022, cloud-based software consumption will be one of the most important drivers to India's 15% growth in the software segment, while pent-up demand for data centre technology will drive 4% growth in the data centre segment.
“This will be particularly poignant with cloud as it serves as a key element in achieving digital ambitions and supporting hybrid work,” said Lovelock. “Gartner expects the vast majority of large organisations to use external consultants to develop their cloud strategy over the next few years.”
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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