Government IT spending in 2017 to grow 9.5% to US$ 7.8 billion

Source: LiveMint.com, Feb 14, 2017

New Delhi: The government in India is forecast to spend $7.8 billion on information technology (IT) in 2017, an increase of 9.5% over 2016, according to IT researcher Gartner Inc. This forecast includes spending on internal services, software, IT services, data centre systems, devices and telecom services. Government comprises state and local governments and the central government.

The software segment includes enterprise resource planning , supply chain management, customer resource management, desktop, infrastructure, vertical specific software and other application tools. The software segment is expected to grow 15.7% in 2017 to reach $1 billion. Desktop will be the fastest growing segment with 16% growth in this category.

IT services (which includes consulting, software support, business process outsourcing, IT outsourcing, implementation, and hardware support) is expected to grow 14.6% in 2017 to reach $2 billion, making it the largest segment within the IT spending category.

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

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