IT spending growth in India is set to regain pre-pandemic levels in 2023, with 2024 levels expected to be even better
India’s government expects the country’s economy to grow by 6.0% to 6.8% in the 2023 fiscal year. It estimates that the gross value added in the services sector will grow by 9.1% in 2023 and continue to grow in 2024.
While poised for a predicted 0.8% growth despite facing challenges from a falling rupee and increasing current account deficit due to geopolitical events such as the Russia-Ukraine war, the country’s tech market outlook for 2023/2024 is looking optimistic, according to Forrester analysts.
Tech spending in India is expected by the firm’s analysts to grow by 9.6% this year, and IT spending growth is set to regain pre-pandemic levels, with 2024 levels expected to be even better.
According to the firm’s published findings, Indian firms will find themselves in a situation where they must undertake initiatives such as the adoption of new technologies in a cost-effective way to support revenue growth and new customer acquisition. Other points from the report on India include:
- Tech outsourcing and hardware maintenance will see sharp growth. As new technologies capture the imagination of consumers and businesses, Indian companies are moving from a 100%-owned IT model to a project-based outsourced model. Indian tech leaders no longer want to own, build, maintain, and run products on new technologies completely by themselves.
- The Telecom industry will see major investments. In the past year, 5G announcements and investments in technologies like IoT, Web 3.0, the metaverse, AI, and AR/VR have had a major impact on telecommunications in the country.
- Software and tech consulting and systems integration will slow. Software spending growth will dip slightly, from 15% in 2022 to 14.5% in 2023. Spending growth in tech consulting and systems integration in the country will remain high although slipping from 11% in 2022 to 10.2% in 2023, primarily due to increases in the adoption of software as a service and outsourcing of major IT operations or implementations.