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The digital transformation (DX) spending in India is likely to reach $85 billion by 2026 as firms in the country aim to reduce the costs by increasing efficiency, improving security/risk capabilities, and improving customer experience via tech-enabled digital transformation, a report said on Tuesday.

More than 95 per cent of Indian organisations plan to increase DX spending or keep at the same level in 2023, according to the IDC.

During the pandemic, digital transformation aided Indian organisations to survive the challenges and sustain competition.

The lockdown and remote working forced organisations to charter the course for digitisation efforts.

According to IDC research, manufacturing (discrete and process), professional services, banking, government, retail, and telecommunications are the top industries spending on DX in India.

"DX is all about embracing the right technologies; combined with people, processes, and operations that give organisations 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.

Indian organisations are gravitating towards the cloud, automation, artificial intelligence (AI), network infrastructure, Internet of Things (IoT), and other advanced technologies to transform them digitally.

"The current headwinds such as IT supply chain disruptions, inflation, and global geopolitical issues, are likely to persist. Indian organisations must look at these factors as enablers of digital transformation," said Rithika Ponnala, senior market analyst, Digital Transformation practices, IDC India.