Indian IT Spending to Grow 8% in 2021

IT services will register a 10.7% growth to $18.103 billion in 2021, as against a 3% growth in 2020

Indian IT Spending to Grow 8% in 2021
Indian IT Spending to Grow 8% in 2021
PTI - 14 July 2021

IT spending in India is expected to grow at 8 per cent to $92.7 billion in 2021, which is a shade less than the world average of 8.6 per cent, a report by a consultancy said on Wednesday.

Global spending on information technology is estimated to come at $4.2 trillion, said Gartner.

In India, the overall IT spending growth slowed down to 1.5 per cent to $85.865 billion in 2020.

Enterprise software will be the biggest growth area, and growth in spends is estimated to be maintained at 16.9 per cent to $9.218 billion in 2021, Gartner said.

After a de-growth of 5.9 per cent in 2020, the largest spend category of devices will see a 7.6 per cent growth to $38.747 billion in 2021, the analysts estimated.

IT services will register a 10.7 per cent growth to $18.103 billion in 2021, as against a 3 per cent growth in 2020, it said.

After an 11.4 per cent de-growth in 2020, spending on data centre systems is estimated to grow by 3.4 per cent to $2.706 billion in 2021, while the growth in communications services will slow down to 4.3 per cent to $23.979 billion, as against a 10.9 per cent jump in 2020.

It can be noted that the country's largest software company TCS had last week reported a hit to the overall earnings because of the impact of the second wave-induced lockdowns on the business.

"The second wave of the pandemic and associated lockdowns have brought a significant sluggishness during most of the second quarter of 2021. However, demand is witnessing a rapid recovery across the majority of the sectors,” Naveen Mishra, Senior Research Director at Gartner, said.

Pharma, healthcare, financial services, education, online retail, and government continue to invest in their digital transformation journey, he added.

Indian organisations including SMEs will be better positioned to invest more into IT, through the next two quarters, the company said.

In 2022, the IT spending is expected to grow 6.4 per cent to $98.645 billion, as per the estimates.

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