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Govt spending on IT jumps 15pc

While the software segment is growing 15.7 pc, desktops expect a 16 pc spike too

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Pratima Harigunani
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MUMBAI, INDIA: The government in India is forecast to spend $7.8 billion US Dollars on IT spending in 2017, an increase of 9.5 percent over 2016, according to Gartner, Inc. This forecast includes spending on internal services, software, IT services, data center systems, devices and telecom services. Government comprises state and local governments and national government.

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The software segment includes enterprise resource planning (ERP), supply chain management (SCM), customer resource management (CRM), desktop, infrastructure, vertical specific software and other application tools. The software segment is expected to grow 15.7 per cent in 2017 to reach $1 billion USD. Desktop will be the fastest growing segment with 16 per cent 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 per cent in 2017 to reach $2 billion USD, making it the largest segment within the IT spending category.

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

Devices spending will grow 12.7 per cent in 2017 to reach $917 million. Devices refers to printers, copiers, MFPs, mobile devices, PCs and tablets.