Gartner has recently forecasted that IT spending in India will total US$94 billion in 2020, up from US$88.5 billion in 2019 an increase of 6.6%. 2020 will be a rebound year for India’s IT after sitting on the side-lines in 2019,” said John David Lovelock, research vice president at Gartner.
“Additionally, business spending on IT grew 6% in 2019 and is expected to increase by 9% in 2020, helping to drive growth across all segments.”
Strong growth in total software spending will be driven by enterprise application software which is forecast to grow 17% in 2020. The expected increase in overall business spending will help drive a 16% growth in enterprise mobile phone spending in 2020, pushing growth in the devices segment to 6.3%.
Business Resilience and Increased Consumer Spending Fuels IT Growth
Lovelock further added “Consumer resistance to investing in devices has impacted overall IT spending in the country. In 2019, private consumption slowed despite five back-to-back rate cuts throughout the year. This scenario is expected to change in 2020.”
“However, even within the slow economy, businesses showed resilience and continued to invest in IT,” said Arup Roy, research vice president at Gartner. “In mid-2019, the Indian government introduced corporate tax cuts, along with policies that were aimed at reviving the economy and bolstering consumer spending. As a result, corporate spending in software and services saw an uptick and organizations continued to invest in cloud, analytics, digital and automation.”
“In the next two to three years, IT spending will increase as the economy benefits from the goods and service tax (GST) implemented by the Indian government in 2018, and as policies supporting consumer spending come into practice,” said Roy.
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