‘IT spending to fall short of estimates; India to outperform in APAC region’

Bengaluru: IT spending forecast will likely be 1-2 percentage points lower due to heightened uncertainty arising from Trump’s tariffs, depending on specific country exposure of IT services companies in the Asia Pacific (APAC) region, according to a report by research and advisory firm Forrester, put out on Wednesday. 

Initially, these projections showed that technology spending in the Asia Pacific (APAC) region would grow by 6.5% in 2025 to reach $722 billion, up from $678 billion in 2024 and on par with the growth experienced last year. 

Despite this, India is expected to perform comparatively better, being the biggest tech spender in the APAC region, growing 11% in 2025, fueled by the government’s push for digitalisation and a surge in venture capital funding. India's tech spending is expected to reach Rs 5 lakh crore (approximately $59 billion) in 2025. Specifically, the IT services category is expected to grow by 6%, as demand for hybrid cloud solutions, cybersecurity consulting, and system integration to manage increasing regulatory complexity increases. 

However, the report points out a possibility wherein these figures might fall short of  estimates due to tariff-related disruptions. “However, navigating workforce upskilling, regulatory frameworks, and potential tariff implications will be critical to harnessing AI-driven opportunities and ensuring sustainable economic growth,” said Ashutosh Sharma, vice president and research director, Forrester.

The report comes amid growing concerns for India’s IT software industry wherein the focus and shift towards AI is increasing and older working models are becoming outdated.