Revival in economic activities and growing consumer demand has played a key role in the growth of information and communication technologies spending with enterprises changing focus and business models to deliver digital-first experiences
New Delhi: Indian enterprises will be spending $91 billion on information and communication technologies (ICT) in 2021, marking a 10% increase than last year.
ICT spending by Indian businesses could rise to $111 billion in the next three years, said a report released by the International Data Corporation (IDC). The report covered 120 technologies, 15 hardware markets, 83 software functions and 12 information technology (IT) services.
According to Ashutosh Bisht, Senior Research Manager at IDC, government initiatives like production-linked incentives (PLI) and Make in India have made technology-led investments towards digital transformation inevitable. “Providing an alternative to China as the global manufacturing hub will also step up India’s position in the global arena," he said.
IDC said the revival of economic activities in India and growing consumer demand have played a key role in the growth of ICT spending. Enterprises have changed their business models to deliver digital first experiences. “Major industries have reached operations at optimal levels as demand picked up owing to an improved supply into 2021," the company said.
The banking and telecom industry is expected to contribute the most to India’s ICT spending in 2021, accounting for around 14% of the overall spending. The telecom industry is expected to increase its ICT spends by 9% in 2021.