22 February, 2024

Digital tech spending in India to grow 2x the economy in 2024

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The spending on digital technology by organisations in India is likely to grow at two-times the economy in 2024, according to a new report.

As companies are compelled by market demands to grow digital business models and strengthen digital capabilities, the digital tech spending by the Indian firms is set to grow, says the report by International Data Corporation (IDC).

“Adopting platform-driven changes and utilising AI will drive businesses toward a fresh wave of innovation. CIOs, crucial for sustainability, will redefine success metrics in the digital realm,” said Neha Gupta, senior research manager, IDC India.

IDC expects that the combination of predictive AI, machine vision, and GenAI capabilities, and the provisioning of on-demand services through digital ecosystems, will take on a new dimension.

According to IDC’s ‘India Digital Business Survey, 2023’, about 60 per cent of Indian enterprises’ revenue is expected to come from digital business models in the next three years.

Digital disruption has become essential for enhancing customer satisfaction, boosting revenue, and fostering innovation.

“CEOs will play a pivotal role in orchestrating organisational changes by laying emphasis to invest in digital-first initiatives to deliver on digital revenue targets,” the IDC report noted.

Indian organisations will be increasingly selling to, engaging with, or provisioning on-demand services through digital ecosystems to enable new business models powered by AI everywhere capabilities.

“GenAI will be used to co-develop digital products and services by pinpointing market opportunities and allocating company resources,” the report said.

The wholesale adoption of AI will bring challenges for employees who see their overall workflow and learning process impacted.

“This year’s predictions align with the new trajectory for enterprises and CXOs, adapting to the rapid changes in technology and business models,” said Sharath Srinivasamurthy, AVP, Research Group, IDC India.

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