Worldwide government IT spending is forecast to grow 5.1 percent to $483 billion in 2021, Gartner report said.
Three segments are on pace to exceed the overall market growth in 2021. The software segment, which includes application, infrastructure, and vertical-specific software, will experience the strongest growth in 2021.
The report said government spending on IT Services will rise 5.4 percent to $168.63 billion in 2021.
The government spending on Software will increase 9.2 percent to $148.14 billion in 2021.
The government spending on telecom services will increase 5.1 percent to $67.2 billion in 2021.
The government spending on internal services will decline 2.4 percent to $62.42 billion in 2021.
The government spending on devices will increase 5.6 percent to $34.87 billion in 2021.
The government spending on data center will increase 4.1 percent to $31.51 billion in 2021.
“Governments are innovating at a quicker pace by adopting technology solutions for operational and mission critical needs. We are seeing innovative use of technology and data to control and respond to the pandemic, as well as provide financial and humanitarian assistance,” Irma Fabular, senior research director at Gartner, said.
As government organizations continue to embrace remote work and hyperconnected public services, spending on devices is expected to grow 5.6 percent in 2021, up from 1.6 percent growth in 2020.
Meanwhile, Government IT spending in India is set to total $7.3 billion in 2021, a growth of 9.4 per cent from 2020, according to a forecast by Gartner on Tuesday.
The first ever digital census this year will be pivotal in increasing government IT spending in India.
“The government in India will shift from being a cautious spender to opening the fiscal floodgates in 2021,” Apeksha Kaushik, principal research analyst at Gartner, said.