Indian CIOs to accelerate digitization in 2021 says Gartner

India’s CIO will accelerate digital transformation by positioning it not just as a growth enabler but as a survival necessary strategy according to the latest forecast by Gartner.

Speaking at Gartner IT Symposium/Xpo India, Arup Roy, research vice president, Gartner said, “The COVID-19 pandemic stalled many digital transformation projects for Indian enterprises, mainly because of the market uncertainties and reduced cash flows.”

“Organizations that were digitally sound in a pre-pandemic world could contain the impact on their business. The pandemic situation was a wake-up call for many organizations to relook and revive their IT strategies and increase their spending on IT in 2021,” added Roy.

In 2021, IT spending growth will return as CIOs start positioning IT as not just a growth enabler, but a ‘survival necessary’ strategy. While all segments will experience an increase in spending, the enterprise software segment will achieve the highest growth of 13.6%, followed by data center systems at 8.3%.

“The ‘Digital India’ mission will turn a new leaf in 2021 as enterprises across all sectors start spending more on IT. The pandemic provided an opportunity for Indian CIOs to test long-pending projects such as remote working, which delivered on-promise for many enterprises and helped them stay afloat in the most testing times,” said Roy.

“The success of these digital innovations has brought back the focus on investments in IT,” added Roy.

In 2020, the devices and data center systems segments experienced the steepest declines, as spending dropped 26% and 1.2%, respectively. Contrary to other markets where spending declined across all segments, CIOs in India continued to spend on enterprise software, IT services and communication services in 2020.These segments are expected to grow 7%, 3.7% and 4.9%, respectively.

In 2021, the focus of IT spending will be in becoming a true digital business. CIOs in India will direct their IT spending budgets towards accelerating digitization efforts.

Spending is expected to increase on technologies including advanced analytical solutions, access management, encryption software, desktop as a service, cloud, and hyper automation enabling systems. IT solutions such as robotic process automation (RPA), Artificial Intelligence (AI), Machine Learning (ML) and digital commerce will also experience an increase in spending.

IT spending in India is projected to total $81.9 billion in 2021, an increase of 6% from 2020, according to the latest forecast by Gartner while in 2020 it is expected to total $79.3 billion, down 8.4% from 2019.

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