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IT Spending By Indian Government To Increase 8.6% To $8.3 Bn In 2022: Gartner

As per the IT research and advisory firm, the digitalization initiatives of the union government took a giant leap in 2020 because of the Coronavirus pandemic. However, as the vaccination drive is in full swing, the government will focus on digitalization initiatives.

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The spending on Information Technology (IT) by the Indian government is expected to grow at a total of $8.3 billion in 2022,  an increase of 8.6 % from 2021, informed the Gartner Inc report. 

As per the IT research and advisory firm, the digitalization initiatives of the union government took a giant leap in 2020 because of the Coronavirus pandemic. However, as the vaccination drive is in full swing, the government will focus on digitalization initiatives.

Apeksha Kaushik, Senior Principal Research Analyst at Gartner in a statement said, "Digitalization initiatives of Indian government organizations 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."

"As vaccination rates increase throughout the country and public health improves, the governments will focus on furthering the digitization efforts on concerns such as ‘citizen experience’ and digital inclusion," Kaushik added. 

However, the report by Gartner Inc also stated that as individual digital solutions don't connect with overall digital maturity, the Indian government is behind in digital development when contrasted with its western partners. The IT spending development will be driven by moving from legacy systems to advanced digital systems.

"Digital licensing, online judicial proceedings, digital taxation are some initiatives that underwent a knee-jerk reaction during the pandemic in 2020. However, the full potential is yet to be realized. The Gartner report predicts that the forthcoming 5G spectrum auction will aim at solving some of these challenges related to digital inclusion in 2022, mentioned in the report. 

Apart from the telecom services, all government organizations are likely to increase spending on IT segments. The software segment is likely to register the highest growth of 24.7 percent in 2022. 

“In India, with increasing investments on cloud and cyber-security, the prime focus of IT spending by government organizations is on building collaborative partnerships, along with technology solutions. Government CIOs are looking beyond implementation for signs of the impact from the technology, outcome-based futuristic direction they should take, and for IT technology/service providers that go beyond provision to partner and collaborate with them to achieve their mission-critical priorities,” said Kaushik.

As cloud deployments and implementations further the digital plan, privacy, and security continue to be government CIOs’ top concerns in the nation. 

Key technologies that Union Government CIOs will be focusing their spending on in 2022 will be digital environment and business continuity solutions, business intelligence, and data analytics. Apart from that, there are responsible AI and blockchain with updated data privacy and data sharing tools.


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