New Delhi: The expenditure on information technology (IT) in India is anticipated to escalate to a total sum of USD 160 billion by 2025, marking an increase of 11.2 percent from the previous year, 2024. This projection is based on the latest forecast by Gartner, Inc., a leading global consulting firm.
Gartner further noted that the expenditure on software in India is poised to achieve the highest annual growth rate, with an increase of 17 percent forecasted for 2025.
By 2025, Gartner expects that over half of the applications with Generative AI (GenAI) capabilities will command a price premium.
The report further suggests that the pricing strategies for GenAI-enabled applications will evolve as buyers are evaluated for their readiness to pay the premium.
"In 2025, it is anticipated that Chief Information Officers (CIOs) in India will begin to allocate budgets for Generative AI (GenAI) beyond the initial proof-of-concept projects," stated Naveen Mishra, Vice President Analyst at Gartner.
Moreover, Mishra highlighted that Indian CIOs are expected to significantly increase their investments in technologies such as cybersecurity, business intelligence, and data analytics in 2025, in comparison to the previous year.
Despite the global services market being characterized by restrained spending, macroeconomic uncertainties, and elevated capital expenditures, Gartner anticipates that IT services spending in India will experience an 11.4 percent growth in 2025.
"The enhanced value proposition of GenAI-powered solutions within the realms of customer relationship management (CRM), email and content creation, and analytical platforms is anticipated to significantly influence expenditure on software solutions, thereby fostering the expansion of this sector," stated Mishra.
He further elaborated that service engagements in the domains of cloud computing, application development, and consulting are poised to experience robust growth within India.
Moreover, as delineated in the report, GenAI's pivotal role in facilitating industry-specific applications and augmenting workforce efficiency is expected to be a primary expectation among Indian corporations by the year 2025 and subsequent years.
"The expenditure on data center infrastructure in India is projected to reach a total of USD 4.7 billion in 2025, propelled by the escalating demand from enterprises for new infrastructure to accommodate AI integration," Mishra elaborated.
The report also notes that data center service providers, notably hyperscalers, are broadening their presence in India to cater to the growing enterprise requirements for enhanced data storage and computational capabilities, in compliance with regulatory standards, thereby contributing to the expansion of this segment.
Gartner's methodology for forecasting IT spending is characterized by a meticulous examination of sales data from over a thousand vendors across the comprehensive spectrum of IT products and services. This methodology employs a combination of primary research techniques and secondary research sources to compile an extensive database of market size information, which serves as the foundation for its forecasts.
