Govt IT spending to rise 8.9% next year: Gartner

Our Bureau Mumbai | Updated on January 09, 2018 Published on November 15, 2017

IT spending in the government sector in India is projected to reach $8.5 billion next year in 2018, an 8.9 per cent rise from 2017 estimated spending of $7.8 billion, according to a forecast by Gartner.

Software and IT services continue to exhibit strong growth with device spending continuing to drive the majority of the overall IT spending in the government sector. Software spending is projected to grow by 15.6 per cent in 2017, and will grow another 15.1 per cent in 2018 to reach $1.2 billion, it said.

IT services spending is on pace to grow by 15.3 per cent in 2017 to $2 billion in 2017, a 13.8 per cent rise in 2018 to reach $2.3 billion.

“Spending on devices, which includes printers, copiers, mobile devices, PCs and tablets, is estimated to see the highest growth in 2017, with an increase in spending by nearly 21 per cent to reach $1 billion. This will further increase by another 9.4 per cent to reach $1.1 billion in 2018,” said Moutusi Sau, principal research analyst at Gartner.

Several initiatives by the government, such as the ‘Make in India’, ‘Start-up India’, ‘Skill India’, and the corresponding policy frameworks to support these initiatives, such as the new electronics policy, software product policy, data security and protection policy, will have a positive effect on government IT spending in the near future. However, the chief among all these initiatives is the Digital India programme.

To be successful, Indian government’s digital strategy must address a variety of issues. “While focussing on citizen services is an essential element of the digital strategy, the main and more sustainable benefits will come to the government from the transformation of its internal data and processes,” said Sau.

Published on November 15, 2017
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