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IT spending in India is projected to total $108.5 billion in 2023, while global IT spending is projected to total $4.6 trillion in 2023, an increase of 5.5 per cent from 2022, a new report showed on Thursday.

Despite continued global economic turbulence, all regions globally are projected to achieve IT spending growth in 2023, according to Gartner.

"IT spending will remain strong, even as many countries are projected to have near-flat gross domestic product (GDP) growth and high inflation in 2023. Prioritisation will be critical as CIOs (Chief Information Officer) look to optimise spend while using digital technology to transform the company's value proposition, revenue and client interactions," said John-David Lovelock, Distinguished VP Analyst at Gartner.

Moreover, the report mentioned that the software segment will see double-digit growth this year as enterprises prioritise spending to capture competitive advantages through increased productivity, automation and other software-driven transformation initiatives.

Conversely, the devices segment will decline nearly 5 per cent in 2023, as consumers defer device purchases due to declining purchasing power and a lack of incentive to buy.

"CIOs face a balancing act that is evident in the dichotomies in IT spending. For example, there is sufficient spending within data centre markets to maintain existing on-premises data centres, but new spending has shifted to cloud options, as reflected in the growth in IT services," Lovelock said.

The IT services segment will continue to grow through 2024, primarily due to the infrastructure-as-a-service market, which is expected to grow by more than 30 per cent this year.

The report further said that many Indian CIOs are implementing cost-cutting and efficiency initiatives, resulting in a decrease in data centre system spending.

The acceleration of cloud migration, combined with a shortage of IT skills, is expected to drive IT services spending in India, which is expected to reach 21.9 billion by 2023