BENGALURU—September 18, 2025—New Relic, the Intelligent Observability company, today released its 2025 Observability Forecast, the industry’s most comprehensive report on the state of observability. Surveying over 1,700 IT and engineering leaders and team members across 23 countries and 11 industries, the global report highlights key focus areas, challenges, and trends influencing observability investments like the growing adoption of enterprise AI. The data showed that the cost of any digital business downtime is profound—with high-impact outages carrying a median cost of $2 million USD per hour globally, or approximately $33,333 for every minute systems remain down. For India specifically, the annual median cost of high-impact IT outages for organisations surveyed is $76 million USD per year–on par with the global figure.
The research highlighted that the need to observe AI is dominant in India, as adoption of AI continues to grow rapidly. The research also found a decrease in the number of observability tools used by organisations, and that tool consolidation has become a growing priority, signalling the value organisations in India gain in removing data siloes and increasing visibility across the tech stack.
Outages are expensive and distract engineers from innovating
Complexity and fragmentation of the observability ecosystem remain a challenge
Complexity and fragmentation are continuing to plague India’s observability ecosystem. Nearly half of the respondents (44%) cite a complex tech stack as their top challenge, representing a notable 9-point increase from 2024. In addition, 33% cite an excess of monitoring tools and siloed data as major blockers to achieving full stack observability, and 29% report that internal resistance to change is another key barrier. While these challenges mirror broader Asia Pacific patterns, they’re especially acute in India’s fast-growing tech ecosystem where innovation is abundant, yet the complexity of the tech stack and siloed data complicate simplification efforts.
“The findings of this year’s Observability Forecast point toward two clear themes for Indian organisations: AI-strengthened observability investment is a key priority, and outages are too frequent and costly,” said New Relic Senior Vice President and General Manager Asia Pacific, Rob Newell. “While most Indian organisations understand the benefits of embracing AI, many are also still choosing to accept the multimillion-dollar cost associated with outages and tool sprawl. The solution is clear: companies that embrace intelligent observability across their entire technology stack experience less downtime, fewer critical outages, and high ROI, enabling them to achieve their core business goals.”
Other key findings from the report include:
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Observability delivers strong ROI. India is one of the regions with the highest spend on observability and these investments are paying off: 42% of respondents report a 2–3x ROI, and over half (51%) see ROI in the range of 2–5x.
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Collaboration is a top benefit. Collaboration stands out as the top business outcome of observability. Almost three fifths (59%) of Indian respondents say observability improves cross-team collaboration around software stack decisions, representing the highest rate across all regions, compared to 46% globally, and 47% in Asia Pacific overall.
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Businesses are taking steps to consolidate observability tools. The data shows a 27% decrease in the average number of observability tools globally from 2023 to 2025. The median number of tools used today for Indian organisations is four tools per organisation, down from six in 2024, and aligning with the Asia Pacific and global medians.