IT spending expected to grow 11% year-on-year to reach $44 billion in 2024: IDC

Generative AI will accelerate AI adoption in the country with more organisations either exploring or actually investing in use cases

IT spending was mostly driven by the non-hardware segment. (Pexels)

IT spending was mostly driven by the non-hardware segments. (Pexels)

The International Data Corporation (IDC) on Wednesday said it expected IT spending in India to grow 11 per cent year-on-year to reach $44 billion in 2024.

IDC added that Indian enterprises continued to invest in digital in 2023 despite economic headwinds and uncertainty. This was leveraged to increase customer engagement and satisfaction, launch new products and services and improve operational efficiency to drive revenue growth and profitability. But organisations did allocate their budget mainly to software, application development, and cloud migration.

IDC expends spending to accelerate at a compound annual growth rate of 9.9 per cent over the next few years to reach the $59 billion mark in 2027. The software market is expected to grow consistently, showing double-digit growth across forecasted years.

Generative AI will accelerate AI adoption in the country with more organisations either exploring or actually investing in use cases. Investments on generative AI will be 26 per cent of the overall AI spend in the country by 2027, growing at a CAGR of 101.6 per cent, according to IDC.

“Even with economic headwinds and uncertainty in 2024, we anticipate that global ICT spending will expand by more than 6% (3x of projected GDP growth), as we enter a new era of accelerated digital innovation, driven in part by greater investment in automation and generative AI,” said Steven Frantzen, Head of WW Strategy and Senior VP & Regional Managing Director (EMEA), in a press statement.