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Government IT Spending in India to Reach $7 Billion in 2016
June 16, 2016 | Gartner, Inc.Estimated reading time: 1 minute
The government in India will spend $7 billion US Dollars (USD) on IT products and services in 2016, an increase of 3.1% 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 8.8% in 2016 to reach $1.6 billion USD – with the business process outsourcing sub-segment growing by 22%.
Telecom services will be a $1.5 billion USD market, with the mobile network services sub-segment recording the fastest growth of 3.5% in 2016 to reach $793 million USD.
"Government spending on software will total $938 million USD in 2016, a 9.9%% from 2015," said Moutusi Sau principal research analyst at Gartner. "The software market will be led by growth in infrastructure."
Internal services will growth 5.8% 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.
"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," said Ms. Sau.
Further information on government sector IT spending is available to Gartner clients in the report, Forecast: Enterprise IT Spending for the Government and Education Markets, Worldwide, 2014-2020, 1Q16 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.
Emerging technologies and trends will be discussed at Gartner Symposium/ITxpo 2016, November 15-18 in Goa, India. Members of the media can register for the event by contacting Sony Shetty at sony.shetty@gartner.com.
About Gartner Symposium/ITxpo
Gartner Symposium/ITxpo is the world's most important gathering of CIOs and other senior IT executives. This event delivers independent and objective content with the authority of the world's leading IT research and advisory organization, and provides access to the latest solutions from key technology providers. Gartner's annual Symposium/ITxpo events are key components of attendees' annual planning efforts. IT executives rely on these events to gain insight into how their organizations can use IT to overcome business challenges and improve operational efficiency.
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