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India's IT spending is expected to grow by 11% year-on-year (YoY) to reach $44 billion in 2024, according to International Data Corporation (IDC). Generative AI (GenAI) continues to accelerate AI adoption in India as more leading organizations consider or invest in his GenAI use cases. As technology leaders recognize the critical role of AI in digital-first strategies, IDC predicts that by 2027, investments in GenAI will reach 26 percent of total domestic AI spending, or a CAGR of 101.6 percent.
In 2023, despite economic headwinds and uncertainty, Indian companies will increase customer engagement and satisfaction, launch new products and services, and improve operational efficiency to drive revenue growth and profitability We continued to invest in digital to achieve this goal. They primarily allocated budget to software, application development, and cloud migration.
As India's digital economy continues to grow beyond 2024, IDC predicts that India's IT spending will accelerate at a compound annual growth rate (CAGR) of 9.9% in the coming years, with the software market consistently expected to reach 590% in 2027. We expect it to cross the billion dollar mark. The forecast shows double-digit growth throughout the year.
“India's digital transition continues unabated as enterprises move aggressively towards a future where AI is everywhere,” said Basant Rao, Managing Director, India and South Asia, IDC. “This is clearly visible in the growth of AI investments by Indian companies.”
“Despite economic headwinds and uncertainty in 2024, global ICT spending will grow by more than 6% “We expect it to expand (three times as much as predicted),” he said. GDP growth), we are entering a new era of accelerating digital innovation, driven in part by increased investment in automation and generative AI. ”
