Athia Sethu
Kochi, 13 November 2024
Tech spending in India is likely to boom in the next couple of years. Research firm Gartner has come up with a new report that shows IT spending in India will increase by 11.2% in 2025, touching nearly $160 billion in the year. That increase is mainly for more spending on software and IT services.
The total amount spent on IT in India increased to $124.61 billion, 10.7% in 2024, a much higher increase than the -0.5% experienced in 2023. Indian businesses are driving this increase and are also investing more in technology, and this trend should continue.
Software will be one area with significant growth in spending. Spending in software will increase by 17% in 2025. Business running software and software for the management of technology systems are included. Software is necessary in helping businesses become more efficient and run more effectively.
Another growth sector includes generative AI, or GenAI. This is a type of artificial intelligence that can create things such as text, images, and even software code. By 2025, however, many Indian companies will start deploying GenAI more significantly. They will shift from using it on small projects to apply it for greater business improvements. Experts, on the other hand, however, argue that as GenAI advances, the wave of excitement it generates may begin to dwindle. The excitement for GenAI will not even last as long as expected, though it might be used by businesses to increase their productivity.
There are also worries about job loss. According to Gartner, by 2026, GenAI may replace about 8.2% jobs in India. Still, simultaneously, they would be more productive workers. The businesses would increase productivity by up to 18% in the next 1-2 years that may offset some of the job losses.
Cybersecurity, business intelligence, and data analytics are also expected to see increased spending. These technology areas ensure businesses make the right decisions, keep safe, and understand their data better.
India would continue with increased spending in software and IT services while trying to promote more investment in areas like generative AI. Companies would, however, have to manage the associated job effects. As the technology improves over time, Indian businesses would make more investments in more efficient tools for competing and efficiency improvement.
