India IT spending to reach $110.3 bn in 2023 amid global slowdown

NEW DELHI: The India IT spending is estimated to grow 0.5 per cent in 2023, totaling $110.3 billion which is up from $109.7 billion in 2022, a report showed on Wednesday.

Globally, IT spending is projected to total $4.5 trillion in 2023, a surge of 2.4 per cent from 2022 - down from the previous quarter’s forecast of 5.1 per cent growth, according to the latest forecast by Gartner.

While inflation continues to erode consumer purchasing power and drive device spending down, overall enterprise IT spending is expected to remain strong.

“While inflation is devastating consumer markets, contributing to layoffs at B2C companies, enterprises continue to increase spending on digital business initiatives despite the world economic slowdown,” said John-David Lovelock, a distinguished VP analyst.

A turbulent economy has changed the context of business decisions and can cause CIOs to become more hesitant, delay decisions or reorder priorities.

“We’ve seen this in action with the reshuffling taking place among some B2B companies, especially those that overinvested in growth. However, IT budgets are not driving these shifts, and IT spending remains recession-proof,” Lovelock added.