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The Enterprise IT Budget Study: Where India’s Core Corporate Groups Are Allocating Strategic Capital Across Infrastructure and Compliance

Where Indian enterprises are putting IT capital in 2026: Gartner, Bain and PwC data on infrastructure, cloud, AI and security and compliance budgets.
The Enterprise IT Budget Study: where India corporate groups allocate capital across infrastructure and compliance
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Ask any Indian CIO where the next rupee of technology budget will go and the answer is rarely “more of the same”. Data, AI, cloud and security are all fighting for capital at once, while compliance obligations keep growing.

We compiled the published budget research from Gartner, Bain, PwC, GlobalData and Capterra to show where Indian enterprise IT money is going. One limit up front: no public source breaks budgets down by individual corporate group, so this is an enterprise-wide view.

Where are Indian enterprises allocating IT capital in 2026?

Into modernisation, all at once. Bain’s survey of more than 250 Indian CIOs and CXOs found capex runs at 50 to 60 percent of IT budgets, against 20 to 30 percent for global peers. Of that capex, about 30 percent goes to data modernisation and AI, 25 percent to core application modernisation, 25 percent to cloud and infrastructure, and 20 percent to cybersecurity. Gartner expects total Indian IT spending of $176.3 billion in 2026, up 10.6 percent.

Key findings at a glance

Metric Figure Source and scope
India IT spending, 2026 $176.3 billion, up 10.6% Gartner forecast
Software spending, 2026 $24.7 billion, up 17.6% Gartner
Data center systems, 2026 $9.4 billion, up 20.5% (29.2% in 2025) Gartner
Information security spending, 2026 $3.4 billion, up 11.7% Gartner
IT budget growth, 2026 6% to 8%, 200–250 bps above global peers Bain India Enterprise Technology Report 2026, 250+ CIOs, CDOs and CXOs
Capex share of IT budgets 50% to 60% (global peers 20% to 30%) Bain
Capex split Data and AI 30%, core apps 25%, cloud and infra 25%, cybersecurity 20% Bain
Executives expecting higher cyber budgets 93%; 17% plan rises of 15% or more PwC India (via Telecom Lead)

How was this report compiled, and how should you read it?

This is a secondary research compilation, completed in October 2026, with no primary survey. Gartner figures are forecasts built on vendor sales data. Bain and PwC figures come from executive surveys and may reflect stated intent more than actual spend. Capterra surveyed businesses of all sizes, not only large corporates.

Two limits matter. First, none of the sources reports spend by named conglomerate. Second, compliance spend is not reported as a separate line, so we use security spending and survey data as the closest proxies.

Which IT segments are growing fastest?

Data centre systems and software. Gartner’s table shows data centre systems growing 20.5 percent in 2026 on AI infrastructure and sovereign cloud demand, and software growing 17.6 percent as enterprises buy AI-enabled applications. Devices remain the largest block of spend but grow more slowly.

Segment 2026 spend Growth Share of total (our calculation)
Devices $66.4 billion 9.9% 37.7%
Communications services $40.4 billion 5.4% 22.9%
Software $24.7 billion 17.6% 14.0%
Data center systems $9.4 billion 20.5% 5.3%
IT services Not itemised in the release 11.1% n/a

Shares are our arithmetic on Gartner’s figures against the $176.3 billion total. Gartner also expects IT services growth of 12 to 14 percent a year over the next few years.

How much capital is going to infrastructure?

A large share of the change in spending. Bain reports that data modernisation and AI account for more than 40 percent of the change in spending, and about a quarter of capex each goes to cloud and infrastructure and to core application modernisation. Gartner links data centre growth to AI infrastructure and to data privacy and sovereign cloud requirements.

GlobalData adds the macro view: it expects Indian enterprise ICT to grow at a 15.5 percent CAGR through 2030, and found 92.3 percent of enterprise ICT decision-makers raised their ICT budgets in 2026.

What does a typical budget split look like in rupee terms?

As an illustration only, using Bain’s percentages and our assumptions, take a ₹100 crore annual IT budget with capex at 55 percent. That is ₹55 crore of capex, which splits into about ₹16.5 crore for data and AI, ₹13.75 crore for core application modernisation, ₹13.75 crore for cloud and infrastructure, and ₹11 crore for cybersecurity.

How much is going to compliance and security?

Gartner puts Indian information security spending at $3.4 billion in 2026, about 1.9 percent of total IT spending by our calculation. Security software is the largest and fastest-growing segment at 12.4 percent growth, and managed security services are the fastest-growing sub-segment at 15.1 percent. Gartner links the growth to AI-driven threats and to the Digital Personal Data Protection (DPDP) Act.

  • PwC India research found 93 percent of Indian executives expect higher cyber budgets, and every executive surveyed said regulatory mandates had pushed them to strengthen security.
  • 86 percent of organisations in the same research had increased spending on AI governance.
  • The DPDP Rules were notified on 14 November 2025, turning the Act into day-to-day operational requirements.
  • Capterra’s India survey found IT security the top software investment priority at 44 percent, ahead of AI at 42 percent.

Is the spending delivering value?

Not yet, according to the people holding the budgets. Bain found only 15 percent of business leaders see IT as truly strategic, 70 percent see it as good but not great, three in four cite misalignment between business and IT goals, and about 90 percent say data foundations are too weak to scale. Leaders also described fatigue with proofs of concept that delivered little measurable return.

Bain’s warning is the sharpest line in the research: without a change in operating model, today’s surge risks creating the legacy technology of tomorrow.

What should vendors take from this budget data?

  • Pitch to funded lines. If your product maps to data and AI, application modernisation, cloud or security, you are asking for money already earmarked.
  • Lead with compliance in regulated accounts. Security and DPDP obligations are budget catalysts, not afterthoughts.
  • Expect scrutiny on value. With PoC fatigue widespread, propose paid pilots with measurable outcomes.
  • Plan for capex timing. With capex at more than half of IT budgets, approvals follow annual planning cycles.

What are the gaps in the data?

We found no group-level budget disclosure, no separate compliance budget line and no vertical split of capex. Bain’s survey is its first edition, so there is no trend line yet.

Sources

Frequently Asked Questions

Where are Indian enterprises putting their IT capex?

Bain’s survey of more than 250 Indian CIOs and CXOs found about 30 percent of capex goes to data modernisation and AI, 25 percent to core application modernisation, 25 percent to cloud and infrastructure and 20 percent to cybersecurity. Capex itself is 50 to 60 percent of IT budgets, against 20 to 30 percent globally.

How much do Indian enterprises spend on cybersecurity and compliance?

Gartner forecasts $3.4 billion of information security spending in India in 2026, up 11.7 percent, which is about 1.9 percent of total IT spending. No public source reports compliance as a separate budget line, but PwC India found 93 percent of executives expect higher cyber budgets.

Which IT segment is growing fastest in India?

Data centre systems, which Gartner expects to grow 20.5 percent in 2026, followed by software at 17.6 percent. AI infrastructure and sovereign cloud and data privacy requirements are driving the data centre growth.

Conclusion

Indian enterprises are modernising the entire stack at once, with capex above half of IT budgets and security, data, AI and cloud competing for it. Budgets are growing, but leaders say returns are unproven and data foundations are weak. Vendors that map to a funded line, lead with compliance where it applies and prove value early will find the money; the rest will compete for what is left.

Want more benchmarks and playbooks like this? Join The Builders Club, a community of 35,000+ founders and CXOs across India, the UAE, Singapore and the US.

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ACV Realities: Selling Core Infrastructure to Mid-Market UK Firms vs. Tier-1 Indian Corporate Houses

November 9, 2026 No Comments

A UK mid-market firm and a Tier-1 Indian corporate house will both buy core infrastructure from you, but they will not pay, decide or expand the same way. UK mid-market deals tend to be smaller, faster and process-led. Indian group deals tend to start with a modest first contract and grow through relationships across divisions. Founders who price both markets with one ACV assumption end up mispricing one of them. Here is how to think about the difference. What is ACV, and why does it vary so much by market? Annual Contract Value (ACV) is the average yearly revenue from a customer contract, excluding one-time fees. It is shaped by company size, buying authority, budget structure and how the buyer prefers to commit spend. Two companies of similar revenue can have very different ACVs for the same product, because the buying behaviour, not the product, decides how much they sign at once. Note: the comparisons below describe structural patterns, not published statistics. Validate every number against your own deal history before using it in a plan. How do UK mid-market firms buy core infrastructure? The buyer group in a UK mid-market company is usually smaller, with a CTO, head of IT or operations lead holding most of the authority. Procurement follows a defined process, and contracts are generally standardised. Compliance first. Data protection under UK GDPR, supplier due diligence and security questionnaires are routine gates. Clear scope. Buyers expect a defined package, a fixed term and a predictable renewal. Faster decisions, smaller contracts. Fewer approvers usually shorten the cycle, but the initial ACV is often constrained by mid-market budgets. How do Tier-1 Indian corporate houses buy the same infrastructure? Large Indian groups often operate as a portfolio of businesses under a shared brand. Technology decisions can sit with a central IT team, a group CIO, or the individual business heads, and sometimes all three. Wider committee. IT infrastructure, security, finance, legal and the business owner may each have a say. Land small, expand across entities. A first deal in one division can become a group-wide relationship once trust is established. Heavier customisation and negotiation. Expect requests on terms, integration, support models and pricing structure. Regulatory overlays. Sector regulators and India’s phased data protection rollout may shape requirements. UK mid-market vs Tier-1 Indian groups: what changes for ACV? Factor UK mid-market Tier-1 Indian corporate house Buying committee Smaller, role-defined Larger, spans IT, business, finance, legal Sales cycle Usually shorter once process starts Often longer and less linear Initial ACV Capped by mid-market budgets Often a small first step, such as one unit or pilot Expansion path Seats, modules, upgrades Additional divisions, group entities, geographies Negotiation focus Compliance, SLAs, term length Commercial structure, customisation, support Biggest risk Price pressure and churn Stalled approvals and scope creep How should you price and structure deals in each market? For UK mid-market Lead with a clear package, a compliance pack and a defined onboarding plan. Aim for annual contracts with a visible upgrade path, since expansion is usually module-based. Use references from similar-sized companies; they matter more than brand names. For Tier-1 Indian corporate houses Design a first contract small enough to approve quickly, but linked to a roadmap for broader rollout. Define what is standard and what is paid customisation from day one, to protect margins. Map the group structure and identify which entity signs, which pays and which uses the product. FAQ Is ACV higher in India or in the UK? It depends on the segment, product and contract structure, and there is no reliable universal figure. In general, UK mid-market deals may close faster at moderate sizes, while large Indian groups can grow into bigger relationships over time through multi-division expansion. Compare using your own deal data. Should I use the same pricing model in both markets? Keep the core pricing logic consistent, but adapt packaging. UK buyers often prefer clear tiers and fixed terms. Indian enterprises may need flexible rollout phases, with the commercial structure explained in terms of business outcomes. Which market is better for a first enterprise customer? Choose based on your strengths. If you have a compliance-ready product and a repeatable process, UK mid-market can offer quick validation. If you have strong relationships and room to customise, a Tier-1 Indian group can become a long-term anchor account. Conclusion ACV is shaped by how a buyer commits, not just by what they buy. Plan UK mid-market deals around process and compliance, and Indian group deals around relationships and staged expansion. Use one pricing logic, but two go-to-market playbooks. Selling across borders? Compare notes with founders and CXOs who sell in both markets. Join The Builders Club and get invited to our next roundtable. About the author: Sohail Khan is Founder and Director of The Builders Club, a professional community of 35,000+ founders and CXOs across India, UAE, Singapore and the US.

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