India to spend over $100bn in 2022 on IT projects
United States– Gartner, the global market research firm, said on Wednesday that India’s spending on IT projects is forecasted to reach $101.8 billion in 2022, which will be an increase by 7 per cent recorded in 2021. This is attributed to the increased digital transformation in the country due to pandemic, Gartner noted.
It is expected that all sectors of IT will register a growth in 2022, with maximum growing segment being software. In software segment, India is expected to invest a total of $10.5 billion in 2022, which will be a surge by 14.4 per cent from 2021. This will be nearly double investment of what was pre-pandemic investment in the segment. “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,” said Arup Roy, research vice president at Gartner.
It is underlined that as in 2022 hybrid working model is expected to be widely adopted, there will also be a surge in spending on the devices. This is projected to reach $44 billion, a spending on devices increased by 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.”
According to Gartner, in 2022 spending determinations will be decided by new projects in Information Technology that “drive innovation, modernize legacy systems, hire talent to support the projects, and build an IT architecture that can withstand future disruptions”. Arup Roy said, “In 2022, CIOs in India will build on renewed interest in technology from the business to gain funding for new IT projects.”
Apart from devices, Indian organizations are also expected to spend the most on communication services and IT services, registering a growth of 2.3 per cent and 9.1 per cent respectively, in contrast to that in 2021.