Indian enterprises will spend more on information and communication technologies (ICT) in 2021. According to a report by the International Data Corporation (IDC), ICT spending in India will grow by 10% in 2021 to reach $91 billion. The market research firm also said that the spending is expected to rise to $111 billion in the next three years.
The report covered 120 technologies, including 15 hardware markets across infrastructure and devices, 83 software functions and 12 IT services.
According to Ashutosh Bisht, Senior Research Manager at IDC, government initiatives like the production linked incentive (PLI), Make in India and more have made technology-led investments towards digital transformation inevitable. “Providing an alternate to China as the global manufacturing hub will also step-up India’s position in the global arena,” he said.
IDC said revival in economic activities in India and growing consumer demand has played a key role in the growth of ICT spending. Enterprises have changed focus and their business models to deliver digital-first experiences. “Major industries have reached operations at optimal levels as demand picked up owing to an improved supply throughout the end of last year and into 2021,” the company said.
anking and telecom industries are expected to contribute the highest to India’s ICT spending in 2021, accounting for around 14% of the overall spending. The telecom industry is expected to increase its ICT expenditure by 9.1% in 2021. The education sector is also expected to spend big on technology as it continues to operate on a hybrid operating model.
The report added that personal and consumer services have also changed since the lockdowns last year, allowing companies more ways to spend on technology, especially so that they can comply with new covid-19 related rules and regulations.
“A digital transformation is on the horizon for all industries across India. This has changed how traditionally hardware has been purchased, services that are opted for, and software developed to help in everyday activity across all industries,” said Mario Allen, Senior Market Analyst, IT Spending Group Asia-Pacific (excluding Japan and China), at IDC.