Overall IT expenditure in India is predicted to reach $110.6 billion in 2022, a 6.3% increase from 2021, despite inflation, geopolitical uncertainty, and skill shortages not being expected to restrict IT investments.
The expectation has been reduced from a prior estimate of $105.2 billion in India, owing primarily to devise growth in 2021. Along with gadgets, Indian CIOs and business executives will continue to invest in analytics, artificial intelligence, machine learning, customer experience, and the cloud in 2022.
Indian CIOs are considering reorganising their existing IT vendor engagement programmes ‘focusing on co-creating solutions in close collaboration with their providers and new contract types.’
India’s spending on IT services is expected to reach $19.7 billion in 2022, representing an 8.6 per cent increase over the previous year. One of the primary growth drivers in the country will be the rising cost of talent. Global IT spending will reach $4.4 trillion in 2022, a 4% rise from 2021.
This year is shaping up to be one of the most perplexing on record for CIOs. Among the numerous issues competing for their time and attention are geopolitical instability, inflation, currency volatility, and supply chain problems. Software investment is expected to increase 9.8 per cent to $674.9 billion in 2022, while IT services are expected to increase 6.8 per cent to $1.3 trillion globally. The Russian invasion of Ukraine is unlikely to impact worldwide IT investment immediately.
Price and pay inflation, combined with personnel shortages and other delivery risks, are projected to significantly impact CIOs’ plans in 2022 but will not halt technology expenditures.