Indian IT (Information Technology) spending is expected to show resilience amid a weak economic scenario, global disruptions, and tumbling geopolitical conditions. The enterprise segment will foster the growth as the segment’s businesses are keen to keep the IT budget intact in the short term, analysts at International Data Corporation (IDC) said in a report. The IT spending in the country is expected to grow 13.8 per cent in 2022, albeit at a slower pace, as compared to previous year, albeit at a slower pace, as compared to 25.3 per cent in the previous year.

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The enterprise segment is aiding the overall growth in Indian IT spending as the segment’s businesses are keen to keep the IT budget intact in the short term, the report added. According to an ongoing IDC survey, six out of seven Indian enterprises either plan to keep or bump up their IT budget for the current fiscal to what they initially planned. The demand for IT infrastructure, services, and software remains robust despite the increasing cost. In fact, businesses are prioritising IT modernisation and digital transformation to maintain the efficiency and competitiveness of business operations.

IDC in April highlighted an increase of 19.6 per cent in the spending on digital transformation in 2022. Spending on artificial intelligence, automation, cloud, and security are also estimated to grow, aligned with the digital transformation, as enterprises lace up to become “future ready,” the IDC analysts said. “Indian enterprises continue to focus on their digital innovation initiatives, business operations resiliency, and customer experience programs. However, enterprises are keeping a sharp eye on global events,” says Vinay Gupta, Research Director, IT Spending Guides, IDC Asia/Pacific. The IT spending in the country may demonstrate resilience, given the current forecast of a mild global recession, Gupta added.

The consumer IT spending, which showed robust growth in 2021, is expected to comparatively drag in 2022 due to multiple headwinds including inflation, depreciation of rupee, and global geopolitical tensions and supply disruptions. The weak spending power will reflect the most on mobile phones which accounts for nearly 65 per cent of consumer IT spending. This consumer technology segment lacks immunity despite the ongoing festive season, which generally sees heavy discounts. The sales of PCs, tablets, and notebooks, are expected to register a marginal growth due to less pent-up demand and the tail end of buying cycle, started in 2021 due to the pandemic. The sales of mobile devices are expected to get a marginal boost following the introduction of 5G services in urban regions of the country. However, consumers can expect an elevation in the price point.

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