As per Gartner’s latest forecast, India’s IT spending is projected to reach US$ 124.6 billion in 2024, marking a 10.7% increase from 2023’s flat growth (-0.5%). The surge will be driven by devices, IT services, and software. Notably, the devices and IT services segment shows significant growth, with device spending shifting from a -7% decrease in 2023 to a 10% increase in 2024. Similarly, IT services are anticipated to rise by 14.6% in 2024, following a 6.5% growth in 2023.
This aligns with global trends, as Gartner forecasts an overall IT growth of 8% by 2024, up from 3.5% in 2023. The IT services sector is expected to expand by 10.4% in 2024, surpassing its 7.3% growth in 2023. However, generative artificial intelligence (GenAI) spending remains limited in 2023 and 2024, according to John-David Lovelock, Distinguished VP Analyst at Gartner. He emphasizes organizations’ ongoing investments in automation and AI to enhance productivity and address IT talent shortages.
Naveen Mishra, VP and Team Manager at Gartner, highlights that Indian organizations will strategically invest in AI and automation to improve operational efficiency and counter the IT talent shortage. However, the tangible impact on IT spending levels due to GenAI is expected to emerge in 2025, despite gradual investments in GenAI and AI contributing to India’s IT spending expansion.
