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Govt IT spending in India to grow by 9.5% in 2017

The government spending on software is expected to grow the highest in 2017 as it is expected to reach $1 billion.

Govt IT spending in India to grow by 9.5% in 2017
Union Minister for Electronics & Information Technology and Law & Justice Ravi Shankar Prasad addresses at the presentation ceremony of the Digital India Awards 2016 in New Delhi on Dec 19, 2016. Photo: IANS
Written By: ZeeBiz WebTeam
Updated: Mon, Feb 13, 2017
12:43 pm
Mumbai, ZeeBiz WebDesk
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The government is forecast to spend $7.8 billion (about Rs 52,271 crore) on IT spending in 2017, an increase of 9.5% over 2016. This forecast includes spending on internal services, software, IT services, data center systems, devices and telecom services, according to a Gartner report.

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% 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. The IT services market is led by growth in business process outsourcing,” said Moutusi Sau, principal research analyst at Gartner.

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