Estimated IT Sector Spending to Reach $139 Billion in 2024!

While IT spending is increasing worldwide, India has a unique story to tell. According to a report by Gartner, there is an expectation of a significant surge in Indian IT sector spending in 2024. This spending is projected to increase by 13.2% to reach $138.9 billion. Let’s delve into the complete narrative of IT spending in India and what significance it holds for investors.

What’s Happening?

According to Business Standard, as per recent estimates by Gartner, Indian IT sector spending is expected to increase by 13.2% to reach $138.9 billion in 2024. This marks a notable growth compared to the previous year’s $122.6 billion. It is anticipated that software spending will contribute the most to this growth, with an estimated increase of 18.6%. Additionally, devices rank second in terms of growth, with an estimated growth of 13.8%.

Furthermore, the report suggests promising growth in software, devices, IT services, and data centre systems across all major segments.

Global IT Spending

IT expenditure is consistently rising worldwide. According to Gartner’s estimates, global IT spending is expected to increase by 8% to reach $5.06 trillion in 2024. This projection surpasses the previous quarter’s estimated growth of 6.8%. Notably, with this accelerating pace, global IT spending could surpass the $8 trillion mark well before the end of this decade.

The graph below helps to understand the growth of various IT segments worldwide during 2023.

What Does It Mean for Investors?

The increasing expenditure in the IT sector is a positive signal for investors. It indicates strong demand for Indian IT companies, which could lead to growth in their revenues and net profits. Additionally, companies associated with growth in the IT sector could also benefit.

Moreover, in terms of the stock market, the Nifty IT index has shown a growth of approximately 24% over the past year, with an impressive 107% growth over the past five years, currently trading around 33,715.55 (Data as of Apr 23, 2024).

What’s Next?

There is hope for further increases in spending in the IT sector as companies are leaning towards digital transformation and adopting emerging technologies. However, it’s essential to note that global economic uncertainties could impact IT spending.

According to IBEF, the IT industry could surpass the $350 billion mark by 2026. Moreover, it is expected to contribute around 10% to the country’s GDP. This is indeed a positive indication for the Indian economy.

That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!

The article is for information purposes only. This is not an investment advice. Disclaimer: Teji Mandi Disclaimer