India’s government IT spending in India is set to total $7.3 bn in 2021 which is a growth of 9.4 % from 2020. Apeksha Kaushik, Principal Research Analyst at Gartner, said that application, infrastructure, and vertical-specific software, will experience the strongest growth in 2021. She added that the adoption of AI, cloud services and blockchain will be major focus areas for the Indian government while focusing on ethics and privacy.
India IT spending is projected to total $88.8 bn in 2021, an increase of 6.8% from 2020, according to Gartner. In 2020, India IT spending declined 2.7% in 2020 as CIOs prioritised spending on “mission-critical” technology and services. Worldwide IT spending will total $3.9 tril in 2021, an increase of 6.2% from 2020. Gartner forecasts global IT spending related to remote work will total $332.9 billion in 2021, an increase of 4.9% from 2020.
Gartner predicted that IT spending in India to grow 6% to a total of $81.9 bn in 2021. Spending in 2020 is impacted by COVID-19 and expected to be at $79.3 bn, down 8.4% from 2019. The growth will come as IT is now positioned as not just a growth enabler, but a ‘survival necessary.’ Spending on the devices (26%) and data centre systems (1.2%) will have the steepest fall. In 2020 CIOs in India, unlike global peers, spurged on enterprise software, IT and communication services.
Worldwide IT spending is projected to total $3.8 tril in 2021, an increase of 4% from 2020, according to research firm Gartner. IT spending in 2020 is expected to total $3.6 tril, down 5.4% from 2019. All IT spending segments are forecast to decline in 2020. Enterprise software (7.2%) and spending on data centre systems (5.2%) are expected to have the strongest rebound in 2020. Cloud computing, despite growth in 2020, will not be reflected in vendors’ revenue until 2021.
1. Firms are likely to lessen the experimentation with emerging tech, leading to reducing the expenditure in that area in the coming years. 2. Investments in cloud, cybersecurity will remain a priority, with cloud moving from just being a back-up to operations. 3.Hardware budgets are expected to drop from 35% of the overall IT budget in 2019 to 31% in 2021. However, security hardware spend is set to grow; up 7% of the hardware spend in 2021 from 5% in 2019.
Govt IT spending globally will decline by 0.6% y-o-y to $438B in 2020, reported Gartner. IT services will be a highly-invested IT sector among governments at $152.7B whereas software sector will experience the strongest growth in investment with a 4.5% increase in 2020. Important but less urgent IT projects like ERP and RPA will be delayed to make room for immediate and critical spending. Cybersecurity, Digital govt services etc will continue to see investments.
Global spending on technology and services may see an over 10% decline in 2020 due to the slowdown caused by COVID-19 pandemic said IT research and advisory firm HfS Research. The firm said that the negative impact on GDP, in Western European and North American markets, from the Q2 of 2020 will be around 10-15%. The situation will lead to a sharp decline in IT services spending. HfS said recovery to pre-COVID-19 levels is likely after the H1 of 2021.
Organisations in India will spend $83.5 bn on its IT infrastructure in 2020, a decline of 8.1%, according to Gartner. In the first decline in five years, devices and Data centre systems to record the steepest slip at -15.1% and -13.2%, respectively. Spending will shift towards DaaS, IaaS, VPN and security resulting in an increase in Cloud adoption and spending. Sectors in advance stage of digitalisation will cut their IT budget i.e retail, insurance, and banking.