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India's IT Spending is Projected to Grow 2.6 Percent in 2023

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India’s IT spending is projected to grow 2.6 percent year on year in 2023, according to a forecast by global research firm Gartner Inc.

Indian businesses will continue to increase their spending in key segments of information technology next year even with the looming tensions of global inflation and the weakening rupee.

This compares with the 5.1 percent year-on-year growth seen in global IT spending for the same period.

The spending will jump to $112.4 billion for the calendar year compared to $109.6 billion in 2022. It grew 1.9 percent year on year in 2022.

Gartner forecasts weakening demand for devices in 2023 as device upgrades are seen to stabilize after a post-pandemic boom.

Spending on data center systems will also experience a decline as businesses opt for public cloud services. End-user spending on public cloud in India is forecast to grow 27 percent year on year in 2023.

Inflation has not impacted enterprise spending on technology globally, and India is no exception to this trend. The headwinds are in favor of technology as businesses realized how going digital can benefit them in the long run

Device spending is expected to contract for the second year in a row - falling 1.2 percent to $47.8 billion and data center systems spending is expected to fall 1.4 percent to $3.4 billion.

Digital technologies may see an uptick while there may be vendor consolidation in certain areas.

Arup Roy, vice president analyst, Gartner says, “Inflation has not impacted enterprise spending on technology globally, and India is no exception to this trend. The headwinds are in favor of technology as businesses realized how going digital can benefit them in the long run. Depending upon the maturity level of the digital enterprise, the spending context may be different for different businesses, but overall technology spending will continue to be on the rise in 2023.”

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