India IT spending expected to grow at 8% to $92.7 bn in 2021: Gartner report

India IT spending expected to grow at 8% to $92.7 bn in 2021: Gartner report

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IT spending in the country is expected to grow at 8% to $92.7 billion in 2021, a report by a consultancy said on Wednesday.

The growth at 8% is a shade less than the world average of 8.6%, Gartner said, adding that global spending on information technology is estimated to come at $4.2 trillion.

In India, the overall IT spending growth slowed down to 1.5% to $85.865 billion in 2020, probably hit by the pandemic.

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

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

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

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

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

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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