Spending on digital technology in India will double in 2024

Spending on digital technology in India will double in 2024

New Delhi (Uttam Hindu News): Spending on digital technology by organizations in India is likely to grow twice that of the economy in 2024, according to a new report.

As companies are forced by market demands to enhance digital business models and strengthen digital capabilities, digital technology spending by Indian companies is set to increase, the International Data Corporation (IDC) report said.

Neha Gupta, Senior Research Manager, IDC India, said, “The adoption of platform-driven changes and the use of AI will lead businesses to a new wave of innovation. CIOs critical of sustainability will redefine the metrics of success in the digital sphere.”

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

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

Digital has become essential to enhancing customer satisfaction, increasing revenues and promoting innovation.

“CEOs will play a key role in orchestrating organizational changes by emphasizing investments in digital-first initiatives to meet digital revenue targets,” the IDC report said.

Indian organizations everywhere will increasingly sell, engage or provision on-demand services through the digital ecosystem to enable new business models powered by AI capabilities.

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

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

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

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