Indian Government to spend $7.8 billion on IT in 2017, 9.5% more than last year

Indian Government to spend $7.8 billion on IT in 2017, 9.5% more than last year
A screengrab of the National Portal of India (representational)

The Indian Government is slated to spend USD 7.8 billion on information technology in 2017, an increase of 9.5 percent over the last year, research firm Gartner said on Monday.

The forecast includes spending by the Centre and state governments on internal services, software, IT services, data center systems, devices and telecom services.

Although the research firm did not attribute any specific reasons for its estimates, the additional thrust on technology through campaigns like ‘Digital India’ is pegged as one of the major contributing factors.

The software segment is expected to grow 15.7 percent in 2017 to reach USD 1 billion, while desktop is expected to be the fastest growing segment with 16 percent growth.

IT services (which include consulting, software support, business process outsourcing, IT outsourcing, implementation, and hardware support) is expected to grow 14.6 per cent this year to reach USD 2 billion, making it the largest segment within the IT spending category.

Spending on devices like printers, copiers, MFPs, mobile devices, PCs and tablets is expected to grow 12.7 percent in 2017 to reach USD 917 million.

“Government spending on IT services will total USD 2,093 million USD in 2017, a 15 per cent increase from 2016. The IT services market is led by growth in business process outsourcing,” Gartner principal research analyst Moutusi Sau said.

This report has been covered in a shortened or ‘Snippet’ format to ensure the most important piece of information is relayed in the shortest possible time. If the story develops further or more relevant information becomes available, we will expand it into a full length article.



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