Large Percentage Of Companies In India Expect IT Spending Growth To Slowdown In 2023: IDC India Chief

IDC India MD Vasant Rao on Thursday revealed that a large percentage of companies in India expect IT spends to decline in 2023.

Speaking at the Oracle Cloud Summit Mumbai 2023, Rao said India is not expecting a recession but companies in the country expect IT spends to slowdown in 2023. According to the data observed and analysed in January and February by IDC, he said IT spends are likely to soften “a bit” in the current quarter.

Rao said that while it was fairly confirmed that the US will be reporting a recession, India is expected to see a slowdown.

“In the year 2023, we expect this (IT spends growth) to be around 7.5 per cent to 8 per cent as opposed to 10 per cent. That's our current expectation,” he said.

But despite the decline in IT spend growth rate, Rao believes the proportion of digital transformation spend will continue to grow. “I think that is something that we will continue to see in the coming years,” Rao added.

At the Oracle Cloud event, Rao also mentioned that the slowdown reported by companies in India is expected to last six to nine months in 2023. “After that, they're expected to move out of it,” said the IDC India chief.

Meanwhile, a Gartner report in January said that it expects India’s IT spending to grow at 0.5 per cent year-on-year (YoY) in 2023 to USD 110.3 billion, rising from USD 109.7 billion in 2022.

(The story was edited with corrections on request of IDC India on 25 April, 2023 at 12.21 pm)