New Delhi, May 7: Indian companies are projected to increase their technology spending by approximately 8% in 2026, with an estimated 40-45% of this growth linked to artificial intelligence (AI) and technology transformation. This information was revealed in a report released on Thursday.
According to the report by Bain & Company, the growth in IT spending in India is expected to significantly surpass the estimated 4-6% increase among global competitors.
Over the past 12-18 months, there has been a surge in spending, and this trend is anticipated to continue for the next 2-3 years, indicating a structurally robust investment cycle.
The report highlights that Indian enterprises are allocating a substantial portion of their budgets towards long-term capacity building, particularly for AI platforms and data modernization. In India, 50-60% of the technology budget is dedicated to capital expenditure, compared to just 20-30% globally.
Approximately 30% of the capital expenditure by Indian companies is directed towards AI platforms and data modernization.
Key areas of technology spending include core application modernization (25%), cloud and IT infrastructure (25%), and cybersecurity (20%), reflecting a clear shift towards strengthening fundamental capabilities.
The report anticipates that nearly 40% of the technology budget for 2026 will be allocated to transformative initiatives, with AI and data-driven transformations accounting for nearly half of this allocation.
It is estimated that in the next 12 months, around 60% of Chief Information Officers (CIOs) will prioritize high-impact AI roadmaps.
The report also notes that approximately 72% of CIOs identified legacy technology gaps as the biggest barrier to transformation, followed by a skills shortage in next-generation areas (57%) and unproven returns on investment for initiatives related to new technologies (49%).
Nearly 90% of business leaders indicated that the current data infrastructure and AI maturity are insufficient for enterprise-wide expansion.
–
Arpit Soni has had a passion for journalism since the beginning. Now he has turned this hobby into his profession. Arpit, who is a resident of Udaipur, enjoys editing and writing news related to journalism. He has worked as a Senior Content Producer in several important roles at Bhaskar, Patrika, Pratahkal, Punjab Kesari, and Times. Arpit completed his schooling in Udaipur and Jaipur. He has been working in the media industry for more than 10 years, and his journey is still continuing. ✍️📚
Leave a Comment