Government IT Spending in India to reach $7.2 bn in 2016: Gartner

IT services is expected to grow 9.3% in 2016 to reach $1.8 bn with the business process outsourcing sub-segment growing 21%

The government in India is on pace to spend $7.2 bn on IT products and services in 2016, an increase of 2.4% 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% in 2016 to reach $1.8 bn with the business process outsourcing sub-segment growing 21%.

Telecom services will be a $1.6 bn market, with the mobile network services sub-segment recording the fastest growth with 5.2% in 2016 to reach $909 mn.

“Government spending on software will total $885 mn in 2016, a 4.5% increase from 2015,” said Moutusi Sau, Principal Research Analyst at Gartner. “The software market will be led by growth in applications.” 74 www.dqindia.com

Internal services will growth 5.8% in 2016 to reach $1.5 bn. 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 Ms. 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.