The
government in India is forecast to spend $7.8 billion US dollars (USD) on IT in
2017, 7.5 percent increase from 2016, according to Gartner, Inc. This is down
from Gartner’s previous projection for 9.5 percent growth this year.
“The 2 percent
revision in our outlook is primarily due to the effects of demonetization and a
drop in industrial production,” said Moutusi Sau, principal research analyst at
Gartner. “However, spending plans like affordable housing scheme, and increased
loans to small and medium enterprises by the government are likely to have a
positive effect on IT spending in the next few quarters.”
IT services (which includes consulting, software
support, business process outsourcing, IT outsourcing, implementation, and
hardware support) is expected to grow 10.8 percent in 2017 to reach $2 billion
USD, making it the largest IT spending category.
The software segment includes enterprise resource planning (ERP), supply chain management (SCM), customer relationship management (CRM), desktop, infrastructure,
vertical specific software and other application tools. The software segment is
expected to grow 10.8 percent in 2017 to reach $1.1 billion USD. ERP/SCM/CRM
will be the fastest growing segment with 14.5 percent growth in this category.
Devices (which includes printers/copiers/MFPs, mobile devices,
PCs and tablets) is expected to grow 10.4 percent in 2017 to reach $1.1 billion
USD.
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