India government IT spending to grow 9.5 percent in 2017

Government of India

IT spending by the Indian government is likely to grow 9.5 percent year-on-year to $7.8 billion in 2017, market research firm Gartner said.

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.

During the forecast period, the software segment is expected to grow 15.7 percent to reach $1 billion. Desktop will be the fastest growing segment with 16 percent 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 percent 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 percent increase from 2016,” said Moutusi Sau, principal research analyst at Gartner. “The IT services market is led by growth in business process outsourcing.”

Gartner forecast also showed that government spending on device will grow 12.7 percent in 2017 to reach $917 million. Devices refer to printers, copiers, MFPs, mobile devices, PCs and tablets.

Most recently, another forecast from Gartner showed that India’s BFSI sector will invest more on IT due to the higher demand of technologically advanced services.

The forecast figure of $8.9 billion dollars represents a 9.7 percent increase from 2016.

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