Will the Growing IT spending Affect India's Economy?
IT spending in India will total $94 billion in 2020, up from $88.5 billion in 2019, which is an increase of 6.6 per cent, a forecast by Gartner Inc. said on Monday.
"2020 will be a rebound year for India's IT spending as consumers return to purchasing mobile phones after sitting on the sidelines in 2019. Additionally, business spending on IT grew 6 per cent in 2019 and is expected to increase 9 per cent in 2020, helping to drive growth across all segments," John-David Lovelock, Research Vice President at Gartner, said in a statement.
Gartner analysts are discussing the macro economic trends affecting the IT spending market in India at the "Gartner IT Symposium/Xpo" which is taking place in Goa until Thursday.
Strong growth in total software spending will be driven by enterprise application software which is forecast to grow 17 per cent in 2020.
The expected increase in overall business spending will help drive 16 per cent growth in enterprise mobile phone spending in 2020, thus, pushing growth in the devices segment to 6.3 per cent.
"Over half of India's total IT spending is done by consumers, so it was expected that a dip in consumer spending would have tremendous impact on total IT spending," added Lovelock.
"Consumer resistance to investing in devices has impacted overall IT spending in the country. In 2019, private consumption slowed despite five back-to-back rate cuts throughout the year. This scenario is expected to change in 2020."