India’s IT spending to reach $92 billion by year-end
India is expected to utilize technological products and services worth $92.7 billion in 2021, an 8% increase to last year’s $85.9 billion, according to projections made by technology research advisory Gartner last Wednesday.
Gartner Senior Research Director Naveen Mishra stated that over 60% of the IT spending is from large enterprises. Small and mid-size enterprises will mostly begin spending in 2022 after their revenues stabilize.
“This is the second year of the pandemic, and organizations have developed resiliency and learnings from the previous wave,” Mishra added. “This has helped them recover quickly. However, there are sectors that are still contact-based like travel and tourism, physical retail and manufacturing, where demand recovery will be slower than other industries.”
The Gartner forecasts for 2021 and 2022 are based on India’s growth projections – such as the gross domestic product (GDP) and the investments made for digital transformation.
The IT and Business Process Outsourcing (BPO) sectors are usually responsible for 12 to 15% of spending in India.
