Growth in IT spend by Centre t reduce to 8.6% in 2022: Gartne
The growth in information technology spending by the government is estimated to slow down to 8.6% to $8.3 billion in 2022, against the 13.2% rise expected in the ongoing 2021, a global consultancy said.
“Digitalisation initiatives of Indian government organisations took a giant leap in 2020 because of the global pandemic. The pandemic forced the government to shift priorities as supply chains and revenue streams dwindled,” Apeksha Kaushik, senior principal research analyst at Gartner, said.
As the vaccination rates increase throughout the country and public health improves, governments will focus on furthering the digitalisation efforts on concerns such as ‘citizen experience’ and digital inclusion, she added.
The growth in spending on software will increase to 24.7% to $1.8 billion in 2022, while the data centre spends growth will see one of the sharpest declines to 2.2% from 7.6% in 2021 to $507 million in 2022, the report said.
The fast-paced growth in software spends will be on the back of the adoption of citizen service delivery applications with the use of artificial intelligence and machine learning to improve across citizen initiatives, it said.
Telecom services will see a 1 per cent decline in overall spending to $819 million, after posting an expected 4% growth to $828 million in 2021, Gartner said.
“As India prepares itself for 5G rollout, the telecom market requires deep pockets to make an impact on innovation, quality of services to citizens, and pricing. Hence, the focus on investing in telecom services will be lower as compared to the other segments in 2022,” it reasoned.
The prime focus of IT spending by government organ tions is on building collab tive partnerships, along technology solutions, as investments in cloud and cy security increase, Kaushik s “Government CIOS (chief in mation officers) are loo beyond implementation signs of the impact from technology, outcome-ba futuristic direction they sh take and for IT technology/ vice providers that go bey the provision to partner and laborate with them to ach their mission-critical priorit she added.
As cloud deployments implementations further digital agenda, privacy security continue to be gov ment CIOS’ top concerns in country, the consultancy s