Amid global slowdown, India’s IT spending to reach $110.3 bn in 2023; to grow 0.5%

Job vacancy rates have been increasing every quarter and the open jobs per unemployed rate is at record lows in many countries

PGurus Newsdesk

January 18, 2023

Job vacancy rates have been increasing every quarter and the open jobs per unemployed rate is at record lows in many countries

Gartner forecasts worldwide IT spending to grow 2.4% in 2023

India’s IT spending is estimated to grow 0.5 percent in 2023, totaling $110.3 billion which is up from $109.7 billion in 2022, a report showed on Wednesday.

According to the latest forecast by Gartner, globally IT spending is projected to total $4.5 trillion in 2023, an increase of 2.4 percent from 2022 — down from the previous quarter’s forecast of 5.1 percent growth.

While inflation continues to erode consumer purchasing power and drive device spending down, overall enterprise IT spending is expected to remain strong. A turbulent economy has changed the context of business decisions and can cause CIOs to become more hesitant, delay decisions, or reorder priorities.

John-David Lovelock, a distinguished VP analyst said, “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.”

“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.

The software and IT services segments are projected to grow 9.3 percent and 5.5 percent in 2023, respectively. The devices segment is forecast to decline 5.1 percent 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 are 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.

[With Inputs from IANS]

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