After launching flagship initiatives like ‘Digital India’ and ‘Make in India’ and amid some major developments towards a cash-free economy, IT spending by the Indian government is predicted to increase 9.5 percent over 2016. This forecast includes spending on internet services, software, IT services, data centre systems, devices and telecom services.
Research firm Gartner forecasts that the government — comprises both state and local governments and the national government — will spend $7.9 billion on IT infrastructure in the country in 2017. Segregating the numbers, it is predicted that the software segment is expected to grow 15.7 percent in 2017 to reach $1 billion, while IT services that include consulting, software support, business process outsourcing, IT outsourcing, implementation and hardware support would reach $2 billion with a growth of 14.6 percent.
“Government spending on IT services will total $2,093 million in 2017, a 15 percent increase from 2016,” said Moutusi Sau, principal research analyst at Gartner, in a statement. “The IT services market is led by growth in business process outsourcing.”
Gartner predicts that device spending will grow 12.7 percent in 2017 to $917. This includes printers, copiers, MFPs, mobile devices, PCs and tablets.
Keeping pace with worldwide growth
Last month, Gartner released a report that projected worldwide IT spending to hit $5.3 trillion in 2017, an increase of 2.7 percent over 2016. That foresight, when compared with the latest report, shows the government IT spending in India is keeping pace with the worldwide growth.
Though the Indian market is yet to be matured enough to mark significant growth in the fields of cloud and enterprise services, the government is seemingly developing new strategies to digitalise its operations.
Open source giants like EnterpriseDB and Red Hat are working with the government bodies to enhance adoption of community solutions. Likewise, technology companies including Google and Microsoft are developing new models to grow the India’s IT space as a whole.