Tech spending in India is expected to grow by 9.6 per cent in 2023, according to a report by Forrester. This rate of growth is much higher than the 2 per cent increase in tech spending seen in 2022. The report titled ‘India Tech Market Outlook for 2023 and 2024’ also indicates that growth in IT expenditure is anticipated to rebound to pre-pandemic levels. Moreover, the report predicts a 0.8% growth in the Indian economy during the fiscal year 2023.
The Forrester report claimed that Indian tech spending will grow at a much faster pace in the next few years, 2023 will be a bounce-back year of IT spending, and 2024 is expected to be much better.
Despite the prevailing challenges such as the decline in the rupee and the increasing current account deficit resulting from geopolitical situations like the Ukraine war, the technology sector in India is expected to make remarkable progress. The report also suggests that the country’s tech outsourcing and hardware maintenance will experience a phenomenal expansion. “Indian companies are moving from a 100 percent-owned IT model to a project-based outsourced model as new technologies capture the imagination of consumers and businesses,” the findings showed.
However, software and tech consulting and systems integration will slow down. The report suggests that software spending growth will dip slightly, from 15% in 2022 to 14.5% in 2023. Spending growth in tech consulting and systems integration will remain high although it will slip a bit, from 11% in 2022 to 10.2% in 2023, primarily due to increases in the adoption of software as a service (SaaS) and outsourcing of major IT operations or implementations.
Indian companies are moving from a 100 per cent-owned IT model to a project-based outsourced model as new technologies capture the imagination of consumers and businesses. Telecom will see major investments as well with the onset of 5G and the growing popularity of applications in Web 3, metaverse, and IoT.
Overall, the report suggests that the Indian tech market is poised for growth in the coming years, with 2024 expected to be even better than 2023.