Keeping the Corona pandemic in view, Gartner forecasted that IT spending in India will see a decline of 8.1 pc in 2020. This is the first decline in IT spending experienced in India in the last five years and fall is estimated to be $83.5 billion.
In order to remain to the continued government restrictions on social distancing, CIOs in India will need to spend more on business continuity, remote working and workforce collaboration. The shift toward technologies such as desktop as a service (DaaS), infrastructure as a service (IaaS), virtual private network (VPN) and security will cost more to the IT firms. The overall cloud adoption in India has increased, as a result of this increase in spending.
Spending on devices and data center systems in India are on pace to record the steepest declines in 2020, dropping 15.1 percent and 13.2 percent. CIOs in India will consider extending life cycles of their existing device assets which will delay new purchases.
While spending is on pace to dip across all segments in India this year, technologies such as telehealth, smart-chatbots, mobile applications enabling deliveries and distance learning education software will experience an increase in spending in 2020. Spending on enterprise software is set to record a moderate decline of 2.6 percent in 2020.
Naveen Mishra, senior research director, Gartner said “The lockdown measures forced sectors such as education, healthcare and public utilities to accelerate their digital transformation. However, sectors such as retail, insurance and banking that were already advanced in their digital transformation have to reduce their IT spending in 2020.”