Government to increase current year's IT Spending by 12.1% to $9.5 billion: Gartner

15 Jun 2022 , 01:55 PM

As software continues to be the highest growing segment in India this year, the Government IT spending is likely to reach $9.5 billion in 2022, up by 12.1% from last year, said a new report on Monday.

Apeksha Kaushik, a principal analyst at Gartner, outlined, “In India, all sectors will experience growth in 2022, contrary to the worldwide spending.”

If the trend from 2021 continues, the software industry expects to record the strongest growth across all segments in 2022. Further, Government anticipates that it’s IT spending is likely to reach $565.70 billion in 2022.

Now, Governments are seeking to execute innovative activities with the help of technology to streamline digital services, advance automation processes, evolve citizen experience, and develop a data fabric.

The reports further stated that growth in the data center systems segment will continue to slow during the forecast period.

The Government expects to reduce its spending on telecom services as it plans to reduce investment on expensive legacy systems in favour of digital service delivery models.

Anything-as-a-Service is also becoming popular across government organizations as it gives a better return on investment, normalizing IT spending over time and leading to more predictable IT budgeting.