Picking up the pace after demonetisation and a drop in industrial production, IT spending in the Indian government sector is projected to reach $8.5 billion in 2018.

This is an increase of 8.9 per cent from the 2017 estimated spending of $7.8 billion as software and IT services continue to exhibit strong growth along with spending on devices, Gartner said on Wednesday.

Advertisement

“Spending on devices, which includes printers/copiers/MFPs, mobile devices, PCs and tablets, is estimated to see the highest growth in 2017, with an increase in spending by nearly 21 per cent to reach $1 billion,” said Moutusi Sau, Principal Research Analyst at Gartner.

“This will further increase by another 9.4 percent to reach $1.1 billion in 2018,” Sau added.

Software spending is projected to increase by 15.6 per cent in 2017 and will grow another 15.1 per cent in 2018 to reach $1.2 billion.

IT services spending is on pace to grow by 15.3 per cent in 2017 to reach $2 billion in 2017 and increase by 13.8 per cent in 2018 to reach $2.3 billion.

“The Indian government sector is picking up pace again after the brief slowdown in the past two quarters due to effects reverberated by demonetisation and a drop in industrial production,” said Ganesh Ramamoorthy, Managing Vice President at Gartner India.

The new electronics policy, software product policy and data security and protection policy will have a positive effect on government IT spending in the near future.

“The ‘Digital India’ programme will be the key driver for the IT spending growth in the Indian government sector over the next five years,” Ramamoorthy added.