Tech spends to grow 7.3% in 2021: Study

CHENNAI: With the pandemic accelerating digitisation, information technology (IT) spending in India is expected to rebound and reach a total of $93 billion in 2021. This is an increase of 7.3 per cent from 2020, according to global research firm Gartner.

This is not just an upward revision from the 6 per cent growth predicted by Gartner in November 2020, but also a strong bounce-back from 7 per cent decline in the country’s tech spends during the pandemic year 2020. With this projection, IT spends by Indian organisations also reach closest to the pre-Covid levels during 2019 when India’s IT spends stood at $92 billion.

The IT spending in the country is expected to further grow to $98.5 billion in 2022, according to Gartner’s projections. The pandemic was an inflection point not only for organisations but also for government agencies to relook at IT as digital spending is flowing from a variety of sectors such as education, BFSI, and others including government, analysts said.