Govt IT spending to increase by 12.1%: Gartner

The spend is 5% higher than the global growth estimate

June 14, 2022

Software vertical will see the highest increase at 27.9%

IT services vertical is expected to grow by 13.4%

The growth of the telecom services vertical is expected to be the slowest

Spending on data center systems is expected to reach US$ 639 million

New NASSCOM platform to boost India-US ties

The government’s spending on information and technology (IT) is expected to grow by 12.1% and reach US$ 9.5 billion in 2022 as per a report by research firm Gartner. Although this is less than the 15% growth that was recorded in 2021, it is 5% higher than the global growth estimate.

While all IT verticals are expected to witness growth, it is anticipated that the software vertical will see the highest increase at 27.9% to reach US$ 2.195 billion. The IT services vertical is expected to grow by 13.4% and reach US$ 2.40 billion and internal services by 5.5% to reach US$ 1.42 billion. However, the growth of the telecom services vertical is expected to be the slowest as it is expected to grow by 0.7% to reach US$ 1.01 billion.

Spending on data center systems is expected to reach US$ 639 million at 8.9% while the devices segment is expected to grow by 7.7% to reach US$ 1.78 billion.

One of the primary government objectives has been modernisation and to overcome challenges from the pandemic, a slew of transformation activities has been fast-tracked.

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