Enterprises to keep domestic IT spending flexible

Market researcher International Data Corp (IDC) India report said IT spending among consumers and enterprises will increase by 13% this year compared to 25% growth in 2021.

According to IDC India, a slowdown in growth is expected due to a reduction in consumer IT spending, including sales of mobile phones and laptops, which are likely to decline sharply this year.

However, the pace of growth in enterprise spending, as well as costs incurred by IT service providers such as Tata Consultancy Services, Infosys and Wipro, will remain resilient based on demand for cloud migration among companies and the overall digital transformation of home businesses.

Consequently, India will continue to surpass the global growth momentum of IT spending, which is projected to be around 6% this year. According to industry analysts, concerns around inflation such as market adversity, along with a cautious approach of enterprises offering large deals (worth more than $100 million per year) to IT services firms, increased the growth of IT spending globally. hindering the speed.

One of the key factors is the growing importance among enterprises to “target” IT spending, said Kumar Rakesh, IT and Automotive Analyst, BNP Paribas India.

“This has increased the potential for IT services to attract more customers, as customers and supply chains increasingly come online. Companies are becoming tech-savvy across industries, leading to a structural change in the growth momentum of the IT industry. This has made IT companies resilient to various market factors. Growth in the next two quarters.

However, it could see emerging global markets like India playing a significant role as major global spenders retreat.

For example, on July 19, a Bloomberg report said that Apple, the world’s most valuable company at $2.6 trillion by May, would cut hiring and spending due to rising macroeconomic concerns.