Digital tech spending in India is expected to surpass the growth of the country’s economy by twofold in 2024, according to a new report by the International Data Corporation (IDC). As market demands push companies to enhance their digital business models and capabilities, the investment in digital technology by Indian organizations is set to rise significantly. Neha Gupta, senior research manager at IDC India, emphasized the importance of platform-driven changes and artificial intelligence (AI) in driving innovation and redefining success metrics in the digital realm.
The report predicts that the combination of predictive AI, machine vision, and GenAI capabilities, along with the provision of on-demand services through digital ecosystems, will take digital tech spending in India to a new level. IDC’s ‘India Digital Business Survey, 2023’ reveals that about 60% of revenue generated by Indian enterprises is expected to come from digital business models within the next three years. Digital disruption has become crucial in terms of enhancing customer satisfaction, boosting revenue, and fostering innovation.
CEOs are expected to play a pivotal role in orchestrating organizational changes and investing in digital-first initiatives to achieve digital revenue targets. In this context, Indian organizations will increasingly engage with digital ecosystems to sell, interact, or provide on-demand services, a move aimed at enabling new business models powered by AI capabilities.
However, the wholesale adoption of AI presents challenges for employees, impacting their workflow and learning process. The IDC report highlights the need for enterprises and CXOs to adapt to the rapid changes in technology and business models.
In conclusion, the IDC report indicates that digital tech spending in India will outpace economic growth in the coming years. The adoption of AI and the provision of on-demand services through digital ecosystems are seen as key drivers of this trend. While there are challenges associated with widespread AI adoption, organizations and leaders must adapt to the evolving landscape to stay competitive in the digital realm.
