--- description: Discover the latest findings on software spending by Indian companies and investment priorities in Capterra’s 2025 tech trends report. image: https://gdm-localsites-assets-gfprod.imgix.net/images/capterra/og_logo-e5a8c001ed0bd1bb922639230fcea71a.png?auto=format%2Cenhance%2Ccompress title: 2025 tech trends report: India software spending set to rise --- # 89% of Indian software buyers expect to spend at least 5% more on software in 2025 Canonical: https://www.capterra.in/blog/7604/india-software-spending-rise-tech-trends Published on 5/2/2025 | Written by Sukanya Awasthi, David Jani. ![89% of Indian software buyers expect to spend at least 5% more on software in 2025](https://images.ctfassets.net/63bmaubptoky/7HlemhuBrP1nKAfIITSpLj/a9c0d82b2ceccbb5165fe8db98dc4d8c/05-CAP-US-Header-Why_Your_Software_Search_Doesn_t_Stop_After_Purchase_INTL_1200x630_DLVR.png) > Technological advancements are pushing businesses to upgrade and adopt the right software for their needs. Capterra surveyed 350 decision-makers in India to learn how firms approach their current and planned technology investments. ----- ## Article Content Technological advancements are pushing businesses to upgrade and adopt the right software for their needs. Capterra surveyed 350 decision-makers in India to learn how firms approach their current and planned technology investments. In this article2025 will see more software spending in India than 2024Customer reviews: the most influential factor in software vendor shortlistingMost businesses expect to see a positive ROI on their software purchase within the first 6 monthsTop software investment priorities for next year’s budgetConclusionA majority (89%) of Indian businesses plan to spend more on software in 2025 compared to 2024, driven by India's rapidly evolving tech landscape. This was a key finding in Capterra’s 2025 Tech Trends Survey\*, which examined the responses of 3,500 decision-makers in nine countries, with 350 in India alone. From rising software budgets to the specific areas where businesses are focusing their spending, this article will explore the key trends, priorities, and innovations influencing how organisations are planning their software purchases and implementations. To do so, we broke down our sample responses by industry and company sizes for additional context and insights.Key findings:Software spending is expected to rise significantly in India, with 89% of Indian respondents saying their companies will spend 5% and upwards more in 2025 than in 202445% of Indian decision-makers see customer reviews as their most influential information source when shortlisting software options, far above the global average of 40%Nearly half (48%) of Indian software buyers work in companies that expect to see ROI from software investments within 6 months of purchase44% of respondents in Indian firms are prioritising IT security investment in 2025, followed by artificial intelligence (AI) (42%)2025 will see more software spending in India than 2024India is a dynamic hub for technological advancements, supported by a large talent pool, increasing investments, and growing global recognition. In the Interim Budget 2024-25, the Indian government announced a substantial corpus of Rs. 1 lakh crore (US$12 billion) to promote innovation and startups, along with a new scheme to support Deep Tech Startups in the defence sector. \[1\] As the third-largest and fastest-growing hub for technology startups, India is positioning itself as a key player in the global tech ecosystem, which is further encouraging businesses to boost their software investments. \[2\] However, as companies continue to invest heavily in digital transformation, understanding their software investment choices is crucial for staying competitive in today’s tech-driven environment.Our findings show that organisations are planning to increase their software spending in 2025 compared to 2024, emphasising its importance in their business functioning and operations. In total, 89% of Indian respondents surveyed say they will increase spending by at least 5%, although many (40%) plan to raise spending by 15% or more in the coming months.Looking just at Indian small and midsize enterprises (SMEs), however, this spending is almost as high as the national average. In total, 86% of the surveyed small businesses are expecting to invest more in software in 2025, with over half (53%) opting for moderate increases (5-15%). However, 33% are expecting more substantial hikes (15% or more), nearly double the global average for SMEs (17%). This points to growing technological adoption among Indian SMEs aiming to build robust tech infrastructures in such a dynamic and competitive market. It may also mean that most organisations see expanding their technology capabilities as essential for future success. Whether it's through modest or significant increases in spending, software investment is clearly a key priority. Moreover, only a small fraction, around 2% of all Indian firms, are planning to reduce their software expenditures, hinting that most businesses still see software as a critical investment, even amidst shifting priorities or budget cuts. Why are companies planning to spend more on software buying this year compared to last year?This rise in spending can be viewed as a strategic effort to modernise operations, enhance efficiency, and explore new opportunities. Some of the factors contributing to this might include: Competitive advantage: By investing in software early, businesses can gain a competitive edge by outperforming their competitors and getting off to a good start.Rising subscription costs: Many software programs operate on subscription-based models, and subscription costs can increase with higher product demand, resulting in businesses spending more on software.Need for task automation: Automating processes is turning into a need with an aim to reduce human error, free staff bandwidthand manage smoother operations. Investing in automation software can help businesses boost productivity. Customer reviews: the most influential factor in software vendor shortlistingThere are thousands of software vendors to choose from, even when narrowing down by category. Understanding which options stand out from the rest can prove challenging without the right information, so it’s important to know what is most effective for you as a buyer. Our findings show that software buyers in India inform themselves primarily using reviews from current or previous customers to get their bearings. Customer reviews (45%) are considered to be the most influential information sources at the time of formal research to develop a shortlist of final software vendors. Other important sources respondents rely on include Google/search (42%) and product review websites (41%), both of which are frequently used to guide decisions. Recommendations from industry experts are just as valued, with 42% of respondents saying they trust these insights.Review sites, search engines, and product comparison sites let users quickly access a range of product reviews, feedback, opinions, and articles from various perspectives. In fact, 55% of respondents stated they are more likely to trust the information on customer satisfaction on comparison and review sites versus vendor sites (45%) when researching a software purchase.The data indicates that businesses tend to trust the experiences of others who’ve already used the software before them through reviews. Customer reviews provide real, hands-on insights into what works and what doesn’t with a product, which is key information for potential buyers. Unlike polished sales pitches or marketing materials, this form of raw, honest feedback is seen as more relatable and trustworthy, helping businesses make more confident decisions.Most businesses expect to see a positive ROI on their software purchase within the first 6 monthsCompanies investing in software expect some kind of return on investment (ROI) from the purchase, either through productivity gains, fewer bottlenecks or downtime in their processes, or via boosted revenues. However, they will expect these results in a set period of time.When assessing our full sample of Indian software buyers, our findings show that companies expect to see a return on investment (ROI) fairly quickly. Nearly half of our respondents say they expect to see positive return on investment after 6 months. Overall, our research showed that: 48% said they expect positive ROI within 6 months35% expect it between 7 to 12 months17% said they expect it will take 13 months or moreWhy are the initial 6 months so crucial?The first few months of running a system provide a rough idea to leadership of the potential success or failure of the integration and implementation of their chosen software. This matters to businesses for three important reasons:  Fast ROI means a less-steep learning curve: Faster adaptation to software suggests it can be easily integrated with a firm’s existing systems and business processes, possibly indicating value derived within a short time frame. A longer time to see positive ROI may mean a high risk of failure: The longer it takes to see a positive ROI, the higher the chances of the software being a bad fit. Quick and positive return on investment indicates effective implementation. Early ROI paves the way for more investments: Forcompanies that work on annual or bi-annual cycles, early positive ROI can help businesses manage their allocations on other planned software. Indian companies take around 6 months to finalise their software purchaseWhen we asked respondents about the time it takes to evaluate options and determine which software products fit their needs before buying, the average time taken by businesses was around 5.6 months. Compared to the global average of 4.6 months, Indian companies tend to take a bit more time to finalise their software purchases. One reason for this is: Indian businesses often face tight budget constraints and require multiple levels of internal approvals, which naturally slows down the software purchasing process. Additionally, many companies need significant software customisation to meet specific local needs, prolonging vendor negotiations. Indian businesses are also highly price-sensitive, typically comparing multiple vendors and running pilot tests or demos before committing to a purchase. There is also a probable reluctance to switch from legacy systems, leading to extended evaluations to guarantee smooth integration with existing infrastructure. Navigating India’s complex regulatory and compliance requirements adds another layer of scrutiny, further extending the timeline. \[3\] Top software investment priorities for next year’s budgetWe’ve seen that software investment is likely to rise in India and considered some of the methods that software buyers are using to make their selections. However, what kinds of software are companies targeting?As the data below highlights, organisations plan to focus their software investments in the coming year on several key areas, with IT security and AI solutions being the top priorities for many companies.The emphasis on IT security (44%) reflects a growing need to safeguard sensitive data and secure systems against the rising threat of cyberattacks and data breaches. This surge in investment is driven by the increasing complexity and frequency of these attacks, making cybersecurity a top priority for businesses. \[4\]At the same time, a strong focus on artificial intelligence (42%) demonstrates a clear push towards integrating AI into various aspects of business operations. AI is likley being adopted not only for automating routine tasks but also for its ability to drive innovation and improve decision-making.While IT security investments are geared toward addressing immediate risks and vulnerabilities, AI investments are more future-oriented, focusing on transforming business processes and driving long-term growth. Together, these priorities reflect a dual strategy: protecting current operations while embracing technologies that enable businesses to innovate and thrive in an increasingly digital world.Conclusion The 2025 Tech Trends Report illustrates a clear and strategic shift towards increased software investment as businesses aim to align with the accelerating pace of technological change. The projected spending surge, with 89% of Indian SMEs planning to boost their software budgets, underscores the critical role that digital tools, particularly in areas like cybersecurity and AI, will play in enhancing operational efficiency and decision-making. The data signals that investing in the right software is pivotal to driving long-term business success. The mix of moderate and substantial spending increases suggests that while some companies are cautiously scaling their investments, others are preparing for significant technological upgrades to maintain competitiveness. This growing focus on software, combined with a supportive innovation ecosystem, positions businesses to leverage emerging technologies and transform their operations in a rapidly evolving digital economy. Companies that strategically manage their software investments and align them with changing technology trends have the potential to emerge as leaders in the future marketplace.Looking for business software? Check out our catalogue\! ## Disclaimer > Methodology: \*Capterra’s 2025 Tech Trends Survey was conducted online in August 2024 among 3,500 respondents in the U.S. (n=700), U.K. (n=350), Canada (n=350), Australia (n=350), France (n=350), India (n=350), Germany (n=350), Brazil (n=350), and Japan (n=350), at businesses across multiple industries and company sizes (5 or more employees). The survey was designed to understand the timeline, organisational challenges, adoption \& budget, vendor research behaviours, ROI expectations, and satisfaction levels for software buyers. Respondents were screened to ensure their involvement in business software purchasing decisions.  SourcesUnion Budget 2025: India’s rise as a global innovation leader with deep tech in focus, The Economic Times IT-BPM, Invest IndiaIndia Inc has to deal with 1,536 Acts, 69,233 compliances: Study, The Times of India Cyber threats in 2024: Key incidents and what to expect in 2025 | Technology News, The Indian Express ## About the authors ### Sukanya Awasthi Sukanya Awasthi is a content analyst for Capterra, covering emerging technology trends with a focus on retail, construction and ERP. With an educational background in Computer Science, she brings 8 years of hands-on experience to her writing, translating intricate technical concepts into accessible and informative insights. Sukanya’s research and analysis is informed by nearly 200,000 authentic user reviews on Capterra and over 40,000 interactions between Capterra software advisors and software buyers. Sukanya also regularly analyzes market sentiment by conducting surveys of business leaders in the construction space, as well as retail leaders and consumers, so she can provide the most up-to-date and helpful information to small and midsize businesses purchasing software or services. Her work has been featured in Financial Express, Economic Times, and Bloomberg Quint, among other publications. Outside of work, she likes to spend time with her loved ones and her two dogs. ### David Jani David is a Content Analyst for the UK, providing key insights into tech, software and business trends for SMEs. Cardiff University graduate. 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