IT spending in India is projected to total $93 billion in 2021, an increase of 7.3 percent from 2020, according to research firm Gartner.
The growth in India will be lower than the global average, as worldwide IT spending is projected to total $4.1 trillion in 2021, clocking an increase of 8.4 percent from 2020, Gartner said in a statement.
The source of funds for new digital business initiatives will more frequently come from business departments outside IT and charged as a cost of revenue or cost of goods sold (COGS), it added.
The IT spending in the country is expected to further grow to $98.5 billion in 2022.
IT no longer just supports corporate operations as it traditionally has, but is fully participating in business value delivery, Gartner Research Vice President John-David Lovelock said.
"Not only does this shift IT from a back-office role to the front of the business, but it also changes the source of funding from an overhead expense that is maintained, monitored, and sometimes cut to the thing that drives revenue, Lovelock added.
Spending on Data Centre Systems is expected to touch $3.5 billion (up 4.3 percent from 2020), while that on Enterprise Software is expected to be $7.7 billion (up 13.3 percent) and Devices at $34.6 billion (up 7.7 percent). IT services is forecast to log $16.7 billion (up 8.9 percent), and Communications Services $30.1 billion (up 4.9 percent) spending in 2021.
"Last year, IT spending took the form of a 'knee jerk reaction to enable a remote workforce in a matter of weeks. As hybrid work takes hold, CIOs will focus on spending that enables innovation, not just task completion, Lovelock said.
(Disclaimer: Additional background information has been added to this PTI copy for context)
Edited by Megha Reddy