Through 2024, businesses will be forced to push their plans for digital business transformation by at least five years to survive in a post-Covid world that “involves permanently higher adoption of remote work and digital touchpoints,” according to Gartner.
India’s spend on information technology (IT) is likely to reach $88.8 billion in 2021, up 6.8 per cent from 2020, according to research firm Gartner. This is a significant jump from 2020 when the country’s IT spending had declined 2.7 per cent. In comparison, the global IT spending is expected to total $3.9 trillion in 2021, an increase of 6.2 per cent from 2020 after declining 3.2 per cent in 2020 as chief information officers “prioritized spending on technology and services that were deemed “mission-critical” during the initial stages of the pandemic,” Gartner said in its latest forecast on IT spending.
“In 2021, CIOs have to fast-track their digital projects to get the necessary attention and funding from the board,” said Naveen Mishra, senior research director at Gartner. For businesses, digital initiatives that are directly related to enhancing their customer engagement and supported with a shorter return-on-investment window will be prioritised currently, according to Mishra. “Improving demand scenario across select verticals in India will spur the overall IT spending in 2021.”
Globally, the enterprise software segment is likely to see the highest growth rate of 8.8 per cent in IT spending “as remote work environments are expanded and improved” followed by 8 per cent for the devices segment, 6.2 per cent for data center systems, 6 per cent for IT services, and 4.5 per cent for communications services in 2021.
“With the economy returning to a level of certainty, companies are investing in IT in a manner consistent with their expectations for growth, not their current revenue levels. Digital business, led by projects with a short Time to Value, will get more money and board level attention going into 2021,” said John-David Lovelock, distinguished research vice president at Gartner. Through 2024, businesses will be forced to push their plans for digital business transformation by at least five years to survive in a post-Covid world that “involves permanently higher adoption of remote work and digital touchpoints,” according to Gartner. Global IT spending related to remote work is forecasted to total $332.9 billion in 2021, up 4.9 per cent from 2020.