Indian IT spending to cross $100 bn mark in 2022 on rapid digitalisation

Bengaluru: Rapid digitalisation drive across organisations will drive total IT spending in India to cross $100 billion in 2022, global consultancy major Gartner said. IT spending in the country is forecast to total $101.8 billion in 2022, up seven per cent from 2021.

According to Gartner, IT spending is likely to be $81.89 billion in 2021 as compared to $79.26 billion in 2020 and $92.01 billion in 2019.

"The digital transformation trajectory that began as a pandemic response is here to stay for the next few years," said Arup Roy, research vice president at Gartner. "India has experienced one of the fastest recoveries despite being one of the worst hit regions in the second wave of the pandemic in early 2021. In 2022, CIOs (chief information officers) in India will build on renewed interest in technology from the business to gain funding for new IT projects."

In India, all segments of the IT sector are likely to grow in the coming year. The growth in software solutions is expected to grow 14.4 per cent over the year-ago period to $10 billion in 2022. This growth rate is nearly double that of pre-pandemic period.

Further, as hybrid work adoption increases across work places, there will be an uptick in spending on devices in 2022, reaching $44 billion, up 7.5 per cent from 2021. "The growth in devices is a combination of two components – hybrid work and pent-up demand from 2020 for device upgrades," said Roy. "Spending on devices will make up 43 per cent of total IT spending next year."