Indian IT spend to hit slow lane
It’s projected to grow by 4.7% in 2023 to $86.7 bn, lower than earlier 5.8% growth forecast
image for illustrative purpose
IT’s Under Pressure
- Inflation-driven price increases
- Staffing shortages
- IT supply chain constraints
- Weakening global economy impacting business revenues
New Delhi: Indian IT spending (which includes spending by enterprises, service providers and consumers) is projected to grow by 4.7 per cent in 2023 to $86.7 billion, lower than the earlier 5.8 per cent growth forecast for 2023, an IDC report said on Tuesday.
The IT spending by Indian enterprises and service providers is projected to grow 7.8 per cent in 2023, slower than in 2022.
Consumer IT spending (dominated by consumer purchases of devices such as mobiles, tablets, PCs, wearables, and peripherals) saw a drastic decline and turned cautious due to rising prices, pulling the growth to 2.1 per cent in 2023.
“Rising inflation and currency devaluations made technology investments costlier. But with worries around the weakening global macroeconomic situation, spending growth has moderated,” said Vinay Gupta, Research Director, IT Spending Guides, IDC Asia/Pacific.
