Indian firms to delay spend in transformation, total IT spending to reach $94 in 2020: Gartner


BENGALURU: India’s domestic technology services market is expected to delay in spending for digital transformation owing to slow growth, said IT research firm Gartner.

“They (organisations in India) may delay those investments given the environment especially in the manufacturing sector because that is going through a very tough time, customer experience related transformation initiatives can be put on hold or go slow. “It will be harsh to say they are not going to put in money in transformation,” said Arup Roy, vice president, research at Gartner.

In a forecast, the IT researcher today said overall IT spending in India would grow 6.6% to reach $94 billion in 2020, from $88.5 billion in 2019. But, this growth would primarily be driven by spending in software.

According to Gartner, roughly $17.8 billion of the estimated $94 billion is considered spending in IT services and devices would be $35.4 billion. These two areas are expected to see a delay in discretionary spending or investment in digital transformation.

Roy said that compared with other markets globally India happens to be in the second rank only after China and “the market situation is slightly tepid”. He added that the research firm, however, expects revival in spending by organisations soon.

“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,” said John-David Lovelock, vice president, research at Gartner.

Gartner said measures such as corporate tax cut has helped in improving the spending and would reflect in 2020. “However, even within the slow economy, businesses showed resilience and continued to invest in IT. In mid-2019, the Indian government introduced corporate tax cuts, along with policies that were aimed at reviving the economy and bolstering consumer spending. As a result, corporate spending in software and services saw an uptick and organizations continued to invest in cloud, analytics, digital and automation,” said Roy.


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