IDC Forecasts 11% Year-on-Year Growth in India’s IT Spending, Reaching $44 Billion in 2024

According to the latest report from the International Data Corporation (IDC), IT spending in India is poised to witness an 11% year-on-year increase, reaching a total of $44 billion by the end of 2024. This projection was shared during the thirteenth annual India CIO Summit titled “The Future of IT: Rethinking Digitalization for an AI Everywhere World,” where CIOs and senior IT leaders from various sectors gathered to gain insights into the evolving digital landscape.

Despite economic challenges in 2023, Indian enterprises remained steadfast in their digital investments, aiming to enhance customer engagement, introduce new offerings, and boost operational efficiency. The allocation of budgets primarily towards software, application development, and cloud migrations reflects a strategic approach to optimize existing hardware assets and extend refresh cycles.

Looking ahead, IDC anticipates a continuous surge in IT spending in India, with a compound annual growth rate (CAGR) of 9.9% expected to propel the market beyond the $59 billion mark by 2027. The software segment, in particular, is forecasted to exhibit robust double-digit growth throughout the forecast period. Additionally, the adoption of Generative AI (GenAI) is poised to drive AI utilization across various sectors, with IDC projecting that GenAI investments will constitute 26% of the overall AI spend in the country by 2027, reflecting a staggering CAGR of 101.6%.

The India CIO Summit, organized by IDC and Foundry, serves as a pivotal platform for technology leaders to engage with industry experts and peers, fostering collaboration and knowledge sharing. This year’s summit aims to equip attendees with actionable insights to harness the transformative potential of AI, enhancing digital innovation, customer experiences, operational efficiency, and sustainability.

Vasant Rao, Managing Director of IDC India and South Asia, underscores the relentless digital shift among Indian enterprises, emphasizing the notable growth in AI investments. Meanwhile, Steven Frantzen, Head of WW Strategy and Senior VP & Regional Managing Director (EMEA) at IDC, highlights the resilience of global ICT spending amid economic uncertainties, driven by accelerated digital innovation and increased investment in automation and generative AI.