Government IT expenditure to grow by 9.5%, forecasts Gartner

With the Global IT spending forecasted to grow by 2.7% in 2017, the Domestic IT could increase by 9.5 % at Rs 2.14 lakh crores as per Research Analyst Gartner. The report further adds that IT spending in India will reach $72 billion in 2017.

According to said Moutusi Sau, principal research analyst at Gartner, the Government expenditure on the IT services will reach $2093 million in 2017 signaling a 15% rise as compared to 2016.The IT segment is being fueled by an increase in business process outsourcing.

Most of the investment by both Federal and state governments will be on internal services, IT services, Data Center Systems, and telecommunication sector. Gartner has not given any specific reasons for these forecasts. However, it can be gauged by a renewed thrust on technology and campaigns like ‘Digital India.’

Similarly, the device segment will grow by 12.7% in 2017 and will reach $917 million. This includes mobile handsets, tablets, copiers, etc. The IT service segment is expected to grow by 14.6% in 2017 to reach $2 billion. It will become the biggest segment in the IT spending category and will include software support services, BPO, Information outsourcing, hardware support and implementation of projects, etc.

The software segment is also anticipated to increase by 15.7% in 2017 to reach $1 billion. The desktop segment will account for 16% growth in the category and will become the fastest growing segment. It will also include infrastructure, vertical-specific software, logistic management, resource management and other application tools.

The Digital India program is coordinated by Department of Electronics and information technology and liaisons with different Federal and State Government departments and is headed by the Prime Minister. Most existing e-governance schemes have been revamped to be included in the principles of Digital India.

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