Digital transformation spending in India to reach $85 billion by 2026, says report

As Indian organisations gravitate towards the cloud, automation, artificial intelligence (AI), network infrastructure, Internet of Things (IoT), and other advanced technologies to transform them digitally, spendings on digital transformation (DX) and IT modernisation are at the top of the mind of Indian companies. With more than 95 per cent of Indian companies planning to increase DX spending or keep it at the same level in 2023, the overall DX spending in India is pegged to reach $85 billion by 2026, as per intelligence and data firm International Data Corporation (IDC). Research, manufacturing (discrete and process), professional services, banking, government, retail, and telecommunications will be the top industries spending on DX in India.

As per IDC, organisations in India are seeing the real benefits of DX initiatives in terms of revenue generation, time to market, and business agility. The top business outcomes which organisations eye to achieve with DX spending include reducing costs/increasing efficiency, improving security/ risk capabilities, improving customer experience, expanding market/entering new markets, faster product innovation, improving the employee experience and responding faster to regulatory compliance.

"Digital transformation has been a buzzword over the last few years among all industries and organizations of all sizes. The purpose of digital transformation is long-term survival and staying relevant by building resilience and adaptability in the organization. DX is all about embracing the right technologies, combined with people, processes, and operations that give organizations the ability to evolve and respond in the best possible way to unpredictable and dynamic market conditions," said Neha Gupta, Senior Research Manager, IDC India.

The India Digital Transformation (DX) Survey conducted in 2022 across 504 IT decision-makers of Indian organizations by IDC reveals that for 2022 and 2023, about 3/4th of the respondent companies indicated that they plan to spend more than what they have spent for DX initiatives in 2021, and another 20 per cent of the respondents to maintain the same level of DX spending as in 2021.

Also read: Jeevan Pramaan: Govt cautions pensioners against fake website

Also read: What is the National Single Window System and how will it work?