TECH SUPPLIER Oct 2022 - Market Presentation - Doc # AP48914322
Stage of Digital Transformation Adoption in India: Enterprise and Industry Priorities and Focus Areas for the Next 12–18 Months
This IDC Market Presentation looks at the stage of digital transformation (DX) adoption in India — the evolving state of DX technology landscape, states of capability, organizational priorities, and ever-growing levels of direct digital transformation technology investment.
According to IDC, India's DX spending is expected to increase from US$10.5 billion in 2020 to US$23.6 billion in 2025 at a compound annual growth rate (CAGR) of 17%. Soon after the pandemic hit, DX investments started seeing an upward trend. IDC forecasts DX technology investments to further accelerate in the coming years, with a renewed drive toward long-term strategic digital and resilience objectives. Beyond operational DX investments, customer experience is garnering some of the largest DX technology investments across all industries, including banking, financial services, and insurance (BFSI), manufacturing, government, communications, retail trade and wholesale, and healthcare services.
"About 75% of India organizations plan to increase their DX spending budgets in 2022–2023 compared with their budgets in 2021. Around 75% of these organizations are planning to increase DX investments by more than 10%. However, not all are ready for the transformation required as nearly one in two CEOs need help building out their digital-first strategy. According to IDC's 2022 Digital Transformation Survey, 74% of enterprises in India are unable to create a compelling business case/ROI model to achieve their respective organization's DX initiatives. Enterprisewide DX involves transforming different facets of the organization, such as processes, products, services, and experiences. Once organizations understand the nuances and master the basics of digital transformation, they will be able to plan and accelerate their digital journey," says Neha Gupta, senior research manager, IDC Software and IT Services.