India’s IT spending to grow at 13.4%; tech salaries to jump by 10% in 2026: Report

Bengaluru: With domestic enterprises accelerating cloud adoption, the country's IT spending is set to grow by 13.4 per cent in 2026, down from 13.7 per cent in 2025.

In 2027, it is projected to grow at 13.6 per cent, according to global research and advisory firm Forrester's Asia Pacific Tech Market Forecast, 2026 to 2030 report.

Data localisation rules are also driving major onshore infrastructure investment.

The DPDP Rules 2025 mandate data residency for significant data fiduciaries, spurring data centre growth of more than 20 per cent in the next year. 

The report said software spending follows a similar trajectory as vendors embed AI capabilities into renewal pricing.

"The application modernisation cycle is well underway, with enterprises investing in IaaS, hyper automation, and operational efficiency improvements. GCC expansion and government digital programmes provide additional momentum but are not the primary drivers. CIOs should anticipate continued double-digit growth but plan for software cost inflation and build data governance capabilities ahead of the 18-month DPDP compliance window," the report added.

The highest tech spending growth in the Asia Pacific region in 2026 is projected to be in Vietnam, India, the Philippines, and Indonesia.

The report also mentioned that the average IT salary in APAC will rise by about 5 per cent in 2026, outpacing inflation. Tech salaries will jump by nearly 10 per cent in India, the highest in the region.

The research firm estimates that the APAC region will spend over $437 billion on acquiring new technology between 2025 and 2030. Total spending on technology will grow by 9.3 per cent, driven by investments in software, services, communications equipment, and tech outsourcing, but cost pressures such as software inflation and hardware spikes, regulatory fragmentation, tariffs, energy shocks, uneven regional growth, and talent shortages will reduce the real impact of that investment.

"India’s double‑digit technology spending growth is being propelled by a combination of cloud acceleration, regulatory clarity, and strong domestic demand,” said Ashutosh Sharma, vice president and research director at Forrester. “With data localisation shaping infrastructure strategies and enterprises expanding AI‑ready platforms, the priority now is to digitise processes beyond core systems and build scalable data foundations. CIOs that balance compliance requirements with investments in automation and AI‑enabled capabilities will be best positioned to capture this next phase of growth," Sharma said.

The report also mentioned that this year, the acute talent shortages will shift tech spending to automation and digital employee experience (DEX) platforms.

“Asia Pacific’s technology spending momentum remains strong, but the headline growth numbers mask a more complex reality,” said Frederic Giron, VP and senior research director at Forrester. “CIOs across the region are grappling with software inflation, hardware volatility, and increasing regulatory divergence that directly impact modernisation plans. The conflict in the Middle East adds a new macro headwind — sustained energy cost inflation will compress GDP growth across oil-dependent countries in Asia. The CIOs in those markets should expect IT budgets to come under pressure if the conflict lengthens," Giron said.

To navigate this environment, leaders must shift to highly targeted investments — prioritising automation, AI-enhanced platforms, and modernisation initiatives that deliver measurable productivity gains, he added.