365Telugu.com online news, November 12,2024: India’s IT expenditure is anticipated to reach $160 billion in 2025, marking an 11.2% increase over 2024, as per a new report. This growth is primarily driven by expansion in application and infrastructure software markets, with software spending expected to grow at a notable annual rate of 17%, according to research from Gartner.
“By 2025, Indian Chief Information Officers (CIOs) will begin allocating budgets for generative AI (GenAI) projects beyond initial test phases,” noted Naveen Mishra, VP Analyst at Gartner. Although spending on GenAI will grow, expectations for its performance may temper. CIOs in India are also expected to increase their budgets for cybersecurity, business intelligence, and data analytics in 2025, compared to the previous year.
GenAI-enabled features, particularly across customer relationship management (CRM), email, authoring, and analytics platforms, are anticipated to drive a significant portion of software spending. By 2025, more than 50% of application software products with GenAI functionality will include a price premium, with pricing strategies evolving as customer willingness to pay for these advanced capabilities is tested.
Despite global caution in IT services spending due to macroeconomic uncertainties and high capital costs, India’s IT services spending is projected to grow by 11.4% in 2025. Key drivers include robust growth in cloud services, applications, and consulting engagements. Moreover, Indian enterprises are expected to leverage GenAI to enhance productivity and implement industry-specific use cases.
Additionally, data center spending in India is forecast to reach $4.7 billion in 2025, as companies increasingly invest in infrastructure to support AI integration.