The Wire Staff 
New Delhi: A recent forecast by Gartner predicts that worldwide IT spending will surge 9.8% to $5.61 trillion in 2025. India, in particular, is expected to witness an 11.1% increase in IT spending, reaching $161 billion, The Hindu Businessline reported.
Gartner’s distinguished vice-president analyst, John-David Lovelock, noted that while CIO budgets are increasing, a significant portion will be absorbed by price hikes, affecting real IT spending growth.
The forecast highlights that segments such as data centre systems, devices, and software will experience double-digit growth in 2025, driven by generative AI (GenAI) hardware upgrades. However, these upgrades will not significantly enhance functionality.
Also read: From ChatGPT to o3: Revolutionary AI Model Achieves Human-Level General Intelligence
GenAI is expected to drive spending on AI-optimised servers, which will surpass traditional server spending, reaching $202 billion in 2025. Hyperscalers and IT services companies will account for over 70% of this spending.
In India, data centre systems spending is predicted to grow 19.1% in 2025, driven by enterprises investing in AI-ready infrastructure. Software and IT services spending are also expected to increase, by 16.9% and 11.2%, respectively, driven by GenAI-enabled solutions and cloudification, digitisation, and consulting services.