Spending in IT sector to hit US$ 139 bn in 2024, growing at 13.2%: Gartner

In 2024, the Indian information technology (IT) sector is poised for significant growth, with spending projected to reach US$ 138.9 billion, marking a substantial increase from the previous year. This growth is anticipated across all major segments, including software, devices, IT services, and data centre systems. Notably, software spending in India is expected to experience the highest growth rate of 18.6%, followed closely by devices at 13.8%. Chief information officers (CIOs) in India are prioritizing growth, customer experience, and operational efficiency, leveraging software assets amidst challenging conditions. However, spending on generative artificial intelligence (GenAI) remains minimal in the short term as Indian CIOs are in the planning and evaluation stage regarding this technology.

Globally, IT spending is projected to rise to US$ 5.06 trillion in 2024, driven by increased demand for GenAI processing. Data centre systems spending is also expected to experience notable growth, fuelled by the GenAI trend. Enterprises are transitioning from storytelling to planning and execution phases regarding GenAI, with AI servers expected to dominate hyperscalers' spending. Additionally, there's significant investment in markets supporting large-scale GenAI projects, such as servers and semiconductors. Furthermore, the devices segment is anticipated to grow, with GenAI capabilities integrated into premium and basic phones, sustaining the sector's evolution.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.