Naveen Mishra on why Gartner is optimistic about worldwide IT spending guidance

While you have upgraded your worldwide IT spend guidance with respect to the forecast that you guys have, what is driving that optimism because the commentary from North America or BFSI, etc, has not really improved at least what we are hearing. What has been your key takeaway that has led you to this bullish stance?
Naveen Mishra: In our latest revision, we have revised the forecast to eight percentage growth rate for ‘24 on the back of about 4% growth from ‘23. So, yes, there is optimism and that optimism is backed on three key fundamental pillars. Number one, we expect increased spend in the IT services, especially the consulting piece and that is going to be driving the overall IT spend. Now CIOs around the world and their board members want to invest into some of the emerging technologies such as analytics, generative AI and that is actually fuelling the optimism and the spend for 24 from an overall IT services perspective, so that is one.

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Offering CollegeCourseWebsiteIIM KozhikodeIIMK Chief Product Officer ProgrammeVisitIndian School of BusinessISB Chief Technology OfficerVisitIndian School of BusinessISB Chief Digital OfficerVisitSecond, we also expect to spend into the data centre systems and that data centre system spend which was actually in 4% in ‘23 is expected to go to 10%. Now, again, Gen AI, the buzzword that all of us have been hearing about, in the last six plus months is having a concrete impact on data centre providers and especially the hyperscalers, the cloud providers who want to be ahead of the curve.