Indian Government’s IT Spending to Grow 9.5 Percent in 2017, says Gartner

Initiatives like Digital India and Make In India fuelling growth in IT sector

Indian Government’s IT spending is predicted to reach around $7.8 billion in 2017, carrying on the momentum from the past year, says leading research and analytics firm Gartner Inc. Indian Government’s IT spending would see an increase of about 9.5 percent over the previous year, that is, 2016.

This prediction includes Indian Government’s IT spending on software, internal services, IT services, devices and telecom services, and data center systems. This expenditure would be undertaken by both the state and central Governments.

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

The software section includes supply chain management (SCM), enterprise resource planning (ERP), customer resource management (CRM), and other application tools. This segment is particularly predicted to grow 15.7% in 2017 and would reach $1 billion.

“Initiatives like Make in India and Digital India have allowed improved government spending on IT related fields. Providing services online as well as improving infrastructure for better broadband connectivity would provide high-trajectory growth to India’s economy. With the massive expansion happening as far as the Internet‘s reach is concerned, particularly to rural areas and small towns, the predictions have the potential to turn true and sound credible,” said Shashank Dixit, CEO, Deskera, a global cloud-based business software services provider.

In fact, predictions of Indian Government’s IT spending reflect the growth of IT infrastructure that has seen exponential growth in the last few years. This has been accompanied by a concomitant increase in the reach and spread of technology. The common man has become increasingly technology-savvy with Internet access spreading fast and furious to more consumers through affordable smartphones. Digital India and Make in India initiatives have formed the grounds for augmentation of the IT sector.

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Muqbil Ahmar is the Editor of Run Your Business Site and Technology Evangelist. He is also an environmentalist (greenubuntu), women rights advocate, critic, columnist, social media expert, blogger and a storyteller. With more than 10 years of experience in journalism, he looks at technology from the prism of society. Armed with an M.Phil in Science Policy Studies from JNU, he wants to bring about better understanding between technology and society to make the world a better place to live in.