According to a recent report by Forrester, Tech spending in India is poised to grow by 9.6% this year. 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.
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. However, the report suggests that the country’s tech outsourcing and hardware maintenance will experience a phenomenal expansion.
The Indian tech industry is shifting from a 100% owned IT model to a project-based outsourced model, as per the report. The increasing popularity of new technologies among consumers and businesses is the reason behind this transition. Indian tech leaders no longer want to shoulder the complete responsibility of owning, building, maintaining, and operating products on new technologies themselves.
The report also highlights that tech outsourcing and hardware maintenance will see sharp growth in India. It notes that Indian companies are moving from a 100% owned IT model to a project-based outsourced model as new technologies capture the imagination of consumers and businesses.
iyokIndian tech leaders no longer want to own, build, maintain, and run products on new technologies completely by themselves. Telecom will also see major investments, with 5G announcements and investments in technologies like IoT, Web3, the metaverse, AI, and AR/VR having a major impact on telecommunications in the past year.
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.
The report notes that Indian companies find themselves in a situation where they must undertake initiatives such as the adoption of new technologies in a cost-effective way to support revenue growth and new customer acquisition. 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.
