The India IT spending is estimated to grow 0.5 per cent in 2023, totaling $110.3 billion which is up from $109.7 billion in 2022, a report showed on Wednesday.
Globally, IT spending is projected to total $4.5 trillion in 2023, an increase of 2.4 per cent from 2022 -- down from the previous quarter's forecast of 5.1 per cent growth, according to the latest forecast by Gartner.
While inflation continues to erode consumer purchasing power and drive device spending down, overall enterprise IT spending is expected to remain strong.
"While inflation is devastating consumer markets, contributing to layoffs at B2C companies, enterprises continue to increase spending on digital business initiatives despite the world economic slowdown," said John-David Lovelock, a distinguished VP analyst.
A turbulent economy has changed the context of business decisions and can cause CIOs to become more hesitant, delay decisions or reorder priorities.
"We've seen this in action with the reshuffling taking place among some B2B companies, especially those that overinvested in growth. However, IT budgets are not driving these shifts, and IT spending remains recession-proof," Lovelock added.
Industrial China is alive and well despite concerns of economic slowdown
India IT spending shows resilience despite global headwinds: Report
Govt seeks approval for Rs 4.36 trillion additional spending in FY23
China banks rush to raise debt as slowdown hikes potential bad loans
'Too little, too late': China interest rate cut spurs call for more moves
Udaan product shipment jumps six-fold to 1.7 bn in 2022
Rs 20,000 cr FPO: Adani Enterprises to invest Rs 11,000 cr in green capex
Jubilant FoodWorks brings American chicken brand Popeyes to Chennai
Tata Steel sets up Centre for Innovation in Mobility at IIT-M Research Park
Pharma, healthcare Q3FY23 preview: Cost pressures abating to aid margins
The software and IT services segments are projected to grow 9.3 per cent and 5.5 per cent in 2023, respectively.
The devices segment is forecast to decline 5.1 per cent this year as both consumers and enterprises lengthen device refresh cycles.
Job vacancy rates have been increasing every quarter and the open jobs per unemployed rate is at record lows in many countries.
High competition for talent is challenging CIOs to hire skilled IT staff, limiting growth for companies who struggle to scale without the requisite talent, said the report.
"Skilled IT workers are migrating away from the enterprise CIO towards technology and service providers (TSPs) who can keep up with increased wage requirements, development opportunities and career prospects," said Lovelock.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)