The IT spending in India is set to reach $105.2 billion in 2022 -- an increase of 5.5 percent from 2021, a new Gartner report showed on Monday.
Despite the potential impacts of the Omicron variant, economic recovery with high expectations for digital market prosperity will continue to boost technology investments in the country.
"2022 is a growth year as Indian CIOs accelerate their long-term digital initiatives, despite the ongoing Omicron scare in India," said Naveen Mishra, senior research director at Gartner.
Also Read | Will students in Delhi be able to return to pre-Covid routine in 2022?
Like their global peers, Indian CIOs will also be challenged with skill shortages, leading to increasing dependence on external services partners.
"This will bolster the spending on the IT service segment, forecast to increase by 9 percent as compared to 2021," Mishra added.
Cloud-based software consumption will be one of the biggest contributors towards the 15 percent growth in the software segment in India, whereas the pent-up demand for data center technologies will bring 4 percent growth to the data center segment in 2022.
Cloud will be responsible for nearly all the 11 percent spending growth within the enterprise software segment in 2022 as organizations focus on upgrading their software stack to software-as-a-service (SaaS) to support continued flexibility and agility.
Also Read | Annapurna, class 12 Raj girl, selected for UNESCO's World Teen Parliament
Globally, IT spending is projected to total $4.5 trillion in 2022, an increase of 5.1 percent from 2021.