Friday, 05 June 2020 09:58

India's IT spending to fall for first time in five years: Gartner

By
India's IT spending to fall for first time in five years: Gartner Image by Gerd Altmann from Pixabay

India will experience its first decline in IT spending in the last five years, with expenditure in 2020 to reach US$83.5 billion, a drop of 8.1% year-on-year, the technology research firm Gartner says.

In a statement, Gartner said that rules on continued social distancing meant that Indian CIOs had to divert spending to business continuity. remote work and workforce collaboration.

This meant money would be poured into technologies such as desktop as a service, infrastructure as a service, virtual private networks and security. As a result, overall cloud adoption in India had increased.

“The fear of a global economic recession due to the COVID-19 pandemic is forcing CIOs in India to be very cautious on their IT spending this year,” said Naveen Mishra, senior research director at Gartner.

“In partnership with their CFOs, CIOs in India are reprioritising their IT budgets on mission-critical initiatives.”

india IT spending 2020

Expenditure on devices and data centre systems would record their steepest declines in 2020, at 15.1% and 13.2% respectively, Gartner said. Existing devices would be used for longer and this meant new purchases would be delayed.

However, spending on telehealth, smart-chatbots, mobile applications enabling deliveries, and distance learning education software would rise, while spending on enterprise software would fall by 2.6%.

“The lockdown measures forced sectors such as education, healthcare, and public utilities to accelerate their digital transformation,” said Mishra.

“However, sectors such as retail, insurance, and banking that were already advanced in their digital transformation have to reduce their IT spending in 2020.

"These sectors will continue to spend on targeted digital initiatives such as artificial intelligence, machine learning and virtual sales assistants.

"However, they will have to reduce or stop spending on business transformation, process re-engineering and modernisation of existing systems.”


BACK TO HOME PAGE

NEW OFFER - ITWIRE LAUNCHES PROMOTIONAL NEWS & CONTENT

Recently iTWire remodelled and relaunched how we approach "Sponsored Content" and this is now referred to as "Promotional News and Content”.

This repositioning of our promotional stories has come about due to customer focus groups and their feedback from PR firms, bloggers and advertising firms.

Your Promotional story will be prominently displayed on the Home Page.

We will also provide you with a second post that will be displayed on every page on the right hand side for at least 6 weeks and also it will appear for 4 weeks in the newsletter every day that goes to 75,000 readers twice daily.

POST YOUR NEWS ON ITWIRE NOW!

INVITE DENODO EXECUTIVE VIRTUAL ROUNDTABLE 9/7/20 1:30 PM AEST

CLOUD ADOPTION AND CHALLENGES

Denodo, the leader in data virtualisation, has announced a debate-style three-part Experts Roundtable Series, with the first event to be hosted in the APAC region.

The round table will feature high-level executives and thought leaders from some of the region’s most influential organisations.

They will debate the latest trends in cloud adoption and technologies altering the data management industry.

The debate will centre on the recently-published Denodo 2020 Global Cloud Survey.

To discover more and register for the event, please click the button below.

REGISTER HERE!

BACK TO HOME PAGE
Sam Varghese

website statistics

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

BACK TO HOME PAGE

Webinars & Events

VENDOR NEWS

REVIEWS

Comments