The share of digital spend in total IT spending is likely to grow to at least 30 per cent this year, witnessing a growth of 29 per cent over the previous year
On the back of digital spending by the government and enterprises and, India’s information technology (IT) spending is projected to increase by 11.9 per cent to about Rs 2.59 lakh crore in 2019, according to a latest report by Coeus Age Consulting.
The domestic IT spending increased by 11.5 per cent last year, against the prediction of 11.6 per cent at the start of the year, said the report, which is based on inputs from 108 respondents that include IT heads/CIOs of large as well as medium-sized enterprises.
Commenting on the findings, Kapil Dev Singh, CEO, Coeus Age, said, “After an aberration in 2017 due to the disruption caused by the structural changes undertaken in the form of demonetisation and Goods and Services Tax (GST) roll-out, the IT spend growth bounced back in 2018.”
He further said, “This is on the back of revival of the Indian economy, which is expected to continue in 2019, translating into a growth of 11.9 per cent in the IT spend.”
According to the report, the growth is driven by the digital spending by the government and enterprise and consumer spending on digital services and smartphones. Last year, digital spending collectively by the government and enterprise segments increased by 27.5 per cent as compared to the previous year, making for 25.2 per cent of their total IT spending.
The share of digital spend in total IT spending is likely to grow to at least 30 per cent this year, witnessing a growth of 29 per cent over the previous year.
The spending on commoditised traditional software and hardware products such as PC, server, networking, storage, and in-premise enterprise software, is projected to grow a little less by 4 per cent, the report said.
In addition, interest is shown by the enterprises in exploring the new digital technologies such as artificial intelligence (AI) with 68 per cent, big data analytics with 60 per cent, machine learning (ML) with 46 per cent, and internet of things (IoT) with 40 per cent.