Based on a research, tech spending in India is likely to increase by 9.6% this year, and IT spending growth is expected to return to pre-pandemic levels with even stronger growth predicted for 2024.

 

As per Forrester's "India Tech Market Forecast for 2023 and 2024," the Indian economy will expand by 0.8% in the fiscal year 2023.

 

Nonetheless, it continues to confront difficulties from a weakening rupee and growing current account deficit as a result of geopolitical events like the conflict in Ukraine.

 

The analysis predicts that hardware repair and IT outsourcing will expand rapidly.

 

"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.

 

Indian tech leaders no longer desire to fully own, develop, construct, maintain, and operate goods using new technology.

 

Major investments will be made in telecom. The telecommunications industry has been significantly impacted by 5G announcements and investments in technologies including IoT, Web3, the metaverse, AI, and augmented/virtual reality (AR/VR).

 

But, system integration and software consulting will slow down.

 

"Software spending growth will dip slightly, from 15 per cent in 2022 to 14.5 per cent in 2023," said the report.

 

Although it will slightly slow down from 11% in 2022 to 10.2% in 2023, spending growth in tech consulting and systems integration will continue to be strong, according to the report. This is mainly because of rising adoption of software as a service (SaaS) and outsourcing of significant IT operations or implementations.

 

"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.