In December 2021, Gartner forecast that ICT spending, including communication and datacentres, inside the Indian sub-continent would reach close to $102 Billion in 2022, an increase of more than 5% YoY, but much slower than the growth in 2021 of close to 11%.
The digital transformation trajectory that began as a pandemic response is here to stay for the next few years. 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 in India will build on renewed interest in technology from the business to gain funding for new IT projects, said a Gartner analyst.
Indian CIOs are likely to increase their spending towards projects that drive innovation and modernising legacy systems. Hiring a workforce that can deliver on these needs will also be a key priority. In 2022, this year, Indian CIOs are prioritising a move away from rigid and monolithic ways of doing business to a more composable business and IT architecture where they will be able to better respond to disruptions.
In 2022, all segments of IT spending in India are expected to grow, with software emerging as the highest growing segment. While experiencing a slower growth rate than 2021, spending on software in 2022 is forecast be nearly double of what it was pre-pandemic.
As hybrid work adoption increases in the country, there will be an uptick in spending on devices in 2022, reaching $44 Billion, an increase of 7.5% from 2021. The growth in devices is a combination of two components – hybrid work and pent-up demand from 2020 for device upgrades.
Gartner’s IT spending forecast methodology relies heavily on rigorous analysis of sales by thousands of vendors across the entire range of IT products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.
India IT Spending Forecast ($M)
|2020 Spending||2020 Growth (%)||2021 Spending||2021 Growth (%)||2022 Spending||2022 Growth (%)|
|Data Center Systems||2,614||-11.3||2,764||5.7||2,859||3.4|
Source: Gartner (December 2021)