Driven by the increased adoption of IT services across various verticals, the overall information and communications technology (ICT) spending in India is estimated to grow at a compound annual growth rate (CAGR) of 7.2% from around US$101bn in 2018 to US$144bn in 2023, says GlobalData, a leading data and analytics company.

The services segment is estimated to account for nearly 52% of the overall ICT spending in India in 2023.

India continues to leap forward as one of the fastest growing IT markets globally. The transformation of the Indian IT industry has led to the transition of economy as well, with the IT industry shifting from enterprise servicing to becoming an enterprise solutions provider.

Sunil Kumar Verma, Lead ICT Analyst at GlobalData, comments: “Strong adoption of emerging technologies such as social media, mobility, analytics and cloud (SMAC), artificial Intelligence (AI) along with favorable government policies, which envision ‘Digital India’ are the key driving factors fostering this growth.”

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Enterprises across different verticals continue to embrace different IT offerings through platforms, products and process automation to drive their growth. Most of these enterprises are also focusing their efforts towards the digital transformation initiatives, such as cloud-workload migrations, business process automation and the up-gradation of legacy IT infrastructure.

Verma continues: “With core industry verticals in India such as energy, manufacturing and construction aligning their business model with an IT driven approach, the spending is bound to grow in the coming years.”

As a result, the overall ICT spending in the services segment is estimated to grow around US$24bn during the period 2018-2023. The spending on hardware and software/applications is estimated to grow to around US$10bn and US$8.4bn during the same period.

Sunil concludes: “An increasing number of enterprises are adopting the agile business operating model and are striving to achieve a healthy mix of IT adoption spend and cost rationalization initiatives. This ensures that the demand for IT services will further continue in the coming years.”