IT spending to return after 2023 dip, expect 10.7% jump: Gartner

economictimes.indiatimes.com:

India’s information technology (IT) spending is expected to rise by 10.7% to reach $124.6 billion in 2024 from a year ago driven majority jump in investments in software, IT services and devices, according to the latest forecast by research and consulting services firm Gartner.

In 2023, the IT spending was in the negative at minus 0.5% growth with spending at $112.5 billion.

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While investments in artificial intelligence (AI) and generative AI (GenAI) will contribute to IT spending growth in India, their impacts on IT spending levels will not be evident until 2025. “GenAI will account for a small portion of IT spending through 2024,” said Naveen Mishra, VP, Team Manager at Gartner.

Gartner predicts that despite GenAI being the strong buzzword, it will account for a small portion of IT spending through 2024 and only pick up in 2025.

The biggest share of the annual increase is expected in devices including mobile and laptops at $51 billion surging by 10.1% rebounding from a negative growth of minus 7% in 2023, while the IT services segment is expected to be at $26.6 billion, growing 14.6% from 6.5% last year.

“The double-digit growth can be attributed to Indian consumers’ willingness to pay a higher price for better experience when upgrading to new smartphones,” said Mishra.

To facilitate swift and safe adoption of generative AI in the next 12 months, according to Gartner, organisations must make data AI-ready, implement AI-ready security and establish AI-ready principles in sync with the