How Will Rising Global IT Spending Impact Investments by 2025?

In 2025, the world will have spent $5.61 trillion on IT, which is 9.8% more than in 2024. India will pay 11.1% more on IT, which means it will hit $161 billion. Indian investors in the tech field have a lot of chances to make money with this growth.

What's making IT spending go up?

Improvements to generative AI (GenAI):

A lot more money will be spent on data centers, gadgets, and software. One big reason for this growth is that GenAI is getting better tools.

The new methods will make things run faster, but they might not add many new features right away.

Growth in IT services:

In 2025, IT services will get 9% bigger. This is because more and more companies are using the cloud and other digital tools.

Automation and hybrid work methods are being used by more businesses, which increases the need for IT services.

Price goes up:

The budgets are getting bigger, but costs are going up so much that most of the rise will be lost. That means businesses will focus on changes that are really needed.

Indian Spending on IT

India's rise in IT spending is faster than the world average. The main things that are causing this growth are:

Cloud Services: Because cloud systems are flexible and quick, more businesses are moving to them.

AI and Machine Learning: Businesses use AI tools to make decisions and customer interactions better.

Fintech: More and more people need digital payment methods that are safe and work well.

This rise means that Indian IT companies can serve customers in both India and other countries. Investors should look for companies that focus on new technologies and have strong finances.

How Much Was Spent on IT?

This is how IT spending is likely to rise in 2025 as per a recent report by Gartner:

Spending on data centers will increase by 23.2% as companies buy faster systems for storage and processing.
When it comes to devices, upgrades for hybrid work settings account for a 10.4% rise in spending.
Spending on software will rise by 14.2% because more people want SaaS (Software as a Service) platforms.
IT Services: With a growth rate of 9%, IT services will still be important for businesses.
Communication Services: This section will grow more slowly, at 3.8%, but it is important for all other IT areas.

Opportunities to invest in IT in India

These spots are good for investors in India:

IT companies and SaaS providers:
Indian businesses that offer services in the cloud, cybersecurity, and digital transformation are expected to grow.
AI and automatic tasks: Companies that work on AI and machine learning have a lot of room to grow.
Centers for data: To keep up with the growing need for data, more money is being put into data centers.
IT Startups: India's fintech, edtech, and healthtech startups are fostering new ideas and opening up investment possibilities.

Risks to consider before investing in IT

Even though the rise in IT spending is good news, buyers should be aware of the risks:

Higher Costs: If prices go up, it may be harder to make a profit.
Global Issues: Trade wars and changes in rules could have an effect on spending on IT.
Slow Adoption: It may take longer to fully use new technologies like GenAI.

The IT industry is growing quickly, which means there are lots of chances for buyers. Indian investors can make money by putting their money into businesses that work with new technologies, IT services, and data centers.

To choose the best investments, you should know about the risks and chances in the sphere. A financial expert can help you pick the best choices and build a strong portfolio. Equirus Wealth helps you make the best out of such opportunities ensuring you reach your financial goals. Book a meeting with us to know more.

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