ALARYAN BUSINESS TODAY
IT Spending Expected to Reach $5.61 Trillion Worldwide by 2025, With India Following Suit with a 9.8% Growth Projection
New Delhi: A recent forecast by Gartner has predicted that worldwide IT spending will reach $5.61 trillion in 2025, marking a significant 9.8% increase from the previous year. In India, the country's IT spending is expected to grow at a rate of 11.1%, reaching $161.51 billion.
However, the increased budgets for Chief Information Officers (CIOs) may not necessarily translate to actual spending due to higher costs, with Gartner's John-David Lovelock stating that much of the increase will only offset price hikes within recurrent spending.
Lovelock added that segments such as data center systems, devices, and software are expected to experience double-digit growth in 2025, largely driven by generative AI (GenAI) hardware upgrades, but these upgrades may not bring significant advances in functionality. On the other hand, spending on AI-optimized servers is projected to double traditional servers in 2025, reaching $202 billion.
In India, data center systems are set to nearly double their growth rate from 2024, with a 19.1% increase, driven by enterprises' investments in AI-ready infrastructure for targeted use cases. Software and IT services will remain key contributors to India's IT spending growth, with expected increases of 16.9% and 11.2%, respectively.
Gartner's report also highlights an optimistic outlook among business leaders worldwide, despite market uncertainties. The study found that 61% of Indian executives are optimistic about their organisations' prospects in 2025, up from 53% in 2024. Additionally, 55% of Indian business leaders plan to increase investments in 2025, compared to 50% globally.
Meanwhile, Capgemini's report "Navigating Uncertainty with Confidence – Investment Priorities for 2025" underscores an optimistic outlook among Indian business leaders, who identify artificial intelligence (AI) and generative AI (GenAI) as their leading investment focus. Cloud technology ranks second in priority, followed by a strategic shift toward operational efficiency.
In related news, telcos are seeking service tax exemption on additional AGR dues, which may impact the overall growth prospects of the IT industry in India.