Government IT Spending in India to Reach US$7.2 Billion in 2016

The government in India is on pace to spend $7.2 billion US Dollars (USD) on IT products and services in 2016, an increase of 2.4 percent over 2015, according to Gartner, Inc. This forecast includes spending on internal services, software, IT services, data center, devices and telecom services. Government comprises state and local governments and national government.

IT services (which includes consulting, software support, business process outsourcing, IT outsourcing, implementation, and hardware support) is expected to grow 9.3 percent in 2016 to reach $1.8 billion $US – with the business process outsourcing sub-segment growing 21 percent.

Telecom services will be a $1.6 billion in US market, with the mobile network services sub-segment recording the fastest growth with 5.2 percent in 2016 to reach $909 million.

“Government spending on software will total $885 million in 2016, a 4.5 percent increase from 2015,” said Moutusi Sau, principal research analyst at Gartner. “The software market will be led by growth in applications.”

Internal services will growth 5.8 percent in 2016 to reach $1.5 billion. 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.

“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 Sau.

Further information on government sector IT spending is available in the Gartner report, Forecast: Enterprise IT Spending for the Government and Education Markets, Worldwide, 2014-2020, 2Q16 Update. The forecasts provide total enterprise IT spending, including internal spending and multiple lines of detail for spending on hardware, software, IT services, and telecommunications for vertical industries and 43 countries within seven geographies.