The devastating impact of the Covid-19 pandemic was not borne by only the masses, rather governments also struggled to provide their citizens with the technologies that could enable them to run their operations smoothly.
When it comes to IT spending trends, both short and long term, Governments simply cannot afford to let their guard down. At the end of the day, there is a social contract between a government and its citizens, where both parties have to do their bit.
According to a recently released report by research giant Gartner, it is expected that governments the world over could dish out over half a trillion dollars on improving and modernizing their IT infrastructures.
This comes in the wake of rising demands from the infrastructures of governments to be secure, reliable and resilient in the wake of crises like a global pandemic. It is expected by Gartner that public sector IT budgets could be north of US $557 BN in the year 2022.
During 2020, in which we bore the brunt of the Covid-19 pandemic, the total spend on public IT services was around US $459 BN. This marks a Year on Year increase of 21%, when we compare the spending figures for year 2020 and 2022.
It is yet to be seen that how much of this addition can be attributed to the price hikes in various IT related raw materials and sub-components. Some of the world’s largest IT vendors are struggling to meet production deadlines due to shortage of supplies.
Going forward, digital technologies like Cloud Computing will form bulk of the interface between governments and the masses. This in turn will deliver ease, resilience and improved data security to all the stakeholders involved.
One area within IT, where governments will spend lesser is devices. This is partly due to the disrupted supply chains of IT sub-components globally, and partly in line with the broad strategy to increase reliance on cloud services.