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GOI IT Spending to Touch USD 7Bn in 2016

Gartner Says the Government of India will have spend $7 Billion on IT services in 2016 an increase of 3.1 percent from last year

The government in India will spend $7 billion USD on IT products and services in 2016, an increase of 3.1 percent over 2015, according to Gartner. 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.
As per the release, IT services which includes consulting, software support, business process outsourcing, IT outsourcing, implementation, and hardware support is expected to grow 8.8 percent in 2016 to reach $1.6 billion USD – with the business process outsourcing sub-segment growing by 22 percent. Telecom services will be a $1.5 billion USD market, with the mobile network services sub-segment recording the fastest growth of 3.5 percent in 2016 to reach $793 million USD.

Internal services will grow 5.8 percent in 2016 to reach $1.5 billion USD. Internal services refer to salaries and benefits paid to the information services staff of an organization. The information services staff includes all company employees that plan, develop, implement and maintain information systems.

Moutusi Sau principal research analyst at Gartner said, “Government spending on software will total $938 million USD in 2016, a 9.9 percent increase from 2015. The software market will be led by growth in infrastructure. The ‘Digital India’ initiative continues to be drive investments in the government, led by access of government services on mobile devices (part of the mobile government), and expansion on broadband services.”

Additionally, emerging technologies and trends will be discussed at Gartner Symposium/ITxpo 2016, November 15-18 in Goa, India, the release said.

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