Expenditures on IT services in India are expected to rise by 11.4 percent in 2025, even as the global services market faces careful spending, economic uncertainty, and increased capital expenses. The international consulting company stated that software expenditures in India are anticipated to achieve the highest yearly growth rate, rising by 17 percent in 2025. Gartner forecasts that by 2025, over 50 percent of application software products featuring GenAI capabilities will have a corresponding price increase.

The report mentioned that pricing choices will keep changing until 2025 as buyers are assessed for their readiness to accept a GenAI premium.

"In 2025, Indian chief information officers (CIOs) will start allocating budgets for generative AI (GenAI) beyond initial proof-of-concept projects," said Naveen Mishra, VP Analyst at Gartner.

Furthermore, Indian CIOs are predicted to markedly increase their investment in technologies like cybersecurity, business intelligence, and data analytics in 2025 relative to 2024, he noted.

"While spending on GenAI will increase, CIOs' expectations for its capabilities will diminish. Additionally, Indian CIOs are expected to significantly boost spending on technologies such as cybersecurity, business intelligence, and data analytics in 2025 compared to 2024," Mishra added.

"The price premium of GenAI-enabled offerings across customer relationship management (CRM), email and authoring, and analytic platforms will drive software spending, resulting in the growth of this segment," said Mishra.