Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.


Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence


Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
News18 » Tech
1-min read

Government IT Spending Falls by 2% Due to Demonetisation: Report

There will be a 2% drop in the Indian government's IT spending this year due to demonetisation.


Updated:June 1, 2017, 3:39 PM IST
Government IT Spending, Demonetisation
Representative Image: A bank official counts cash deposited in the bank by a customer. (Photo: Reuters)

There will be a 2% drop in the Indian government's IT spending this year due to demonetisation and a drop in industrial production, market research firm Gartner said on Thursday.

The government is forecast to spend $7.8 billion on IT in 2017 -- a 7.5% increase from 2016. However, this is down from Gartner's projection of 9.5% growth this year.

"The 2% revision in our outlook is primarily due to the effects of demonetisation and a drop in industrial production," Moutusi Sau, principal research analyst at Gartner, said in a statement.

"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," Sau added.

IT services (which includes consulting, software support, business process outsourcing, IT outsourcing, implementation and hardware support) is expected to grow 10.8% in 2017 to reach $2 billion, making it the largest IT spending category.

The software segment is expected to grow 10.8% in 2017 to reach $1.1 billion.

Enterprise resource planning (ERP), supply chain management (SCM) and customer relationship management (CRM) will be the fastest growing segment with 14.5% growth.

Devices (which includes printers/copiers/MFPs, mobile devices, PCs and tablets) is expected to grow 10.4% this year to reach $1.1 billion.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

| Edited by: Krishna Sinha Chaudhury
Read full article
Next Story
Next Story

Also Watch


Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results