Indian Government's spending on IT to reach $7.2 Billion in 2016: Gartner

Oct 06, 2016

The Indian Government, including both the Center as well as the state governments, is on course to spend $7.2 billion on IT products and services in the year 2016, which is an increase of 2.4% over 2015, says Gartner, a global IT research firm in a report. The prediction is in line with the government’s initiatives such as Digital India and Smart City.

“The e-governance initiatives to simplify digital channels and data-driven initiatives are driving investments in the government and are anticipated to grow through 2020. The ’Digital India’ initiatives are making government processes streamlined and integrating the data repositories,” said Moutusi Sau, principal research analyst at Gartner.

More specifically, telecom services will have a $1.6 billion market, in which mobile network services will record the fastest growth at 5.2% in 2016 to approach $909 million. The forecast includes spending on IT services, internal services, software, devices, data centers, and telecom services. IT services is predicted to grow at 9.3% in 2016 to reach $1.8 billion. According to the Gartner report, internal services will grow at 5.8% in 2016 to reach $1.5 billion. IT services such as software support, consulting, business process outsourcing, implementation, IT outsourcing, and hardware support is predicted to grow 9.3% in 2016 to reach the mark of $1.8 billion, with the business process outsourcing sub-segment expected to grow at 21%, said Gartner.

“Government spending on software will total $885 million USD in 2016, a 4.5 percent increase from 2015,” said Sau adding: “The software market will be led by growth in applications.”

This expenditure figures include spending on internal services, software, IT services, data center, devices and telecom services. Government comprises state and local governments as well as the Central government. Internal services refer to salaries and benefits paid to the information services staff of an organization. The information services staff includes all employees that plan, develop, implement and maintain information systems.

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