Indian IT spending to see double digit growth in 2024, reaching $138.9 billion: Gartner report

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IT spending in India is poised to see double-digit year-on-year growth in 2024, growing 13.2 percent, totalling $138.9 billion. This comes at a time when global IT spending continues to see single-digit growth amidst a slowdown in discretionary spending, according to a Gartner report.

Globally IT spending is estimated to grow 8 percent YoY in 2024, reaching $5.06 trillion.

According to the report, in 2024, software spending in India is projected to record the highest growth rate of 18.6 percent. “Indian CIOs are continuing to prioritize growth, customer experience, and operational efficiency while leveraging software assets in this challenging environment. Recurring revenue models are playing a significant role in optimizing IT costs and driving software spending,” the report said.

Additionally, generative AI is unlocking new opportunities for growth and innovation driving spends. In the short term though, the revenue generated from Gen AI in the software industry will be minimal, as Indian CIOs are currently in the planning and evaluation stage, the report said.

Globally too this reflects the increase in spending on data centre systems that could see a notable jump in growth from 4 percent in 2023 to 10 percent in 2024, primarily due to planning for Generative AI.

John-David Lovelock, Distinguished VP Analyst at Gartner said, “We are seeing a cycle of story, plan, execution when it comes to GenAI. In 2023, enterprises were telling the story of GenAI and in 2024 we are seeing most of them planning for eventual execution in 2025.”

“There is also gold rush level spending by service providers in markets supporting large-scale GenAI projects, such as servers and semiconductors. In 2024, AI servers will account for close to 60 percent of hyperscalers total server spending,” he added.