Led by Digital India, GoI to spend $6.88 billion on IT in 2015

MUMBAI, INDIA: The Indian government will spend $6.88 billion on IT products and services in 2015, an increase of 5.2 percent over 2014, according to Gartner.

IT services which includes consulting, implementation, IT outsourcing and business process outsourcing is expected to grow 10 percent in 2015 to reach $1.6 billion with the business process outsourcing sub-segment growing by 21 percent.

Telecom services will also be a $1.6 billion market, with the mobile network services sub-segment recording fastest growth of 3 percent in 2015 to reach$787 million.

Internal services will growth 8.8 percent in 2015 to reach $1.6 billion. Internal services refer to salaries and benefits paid to the information services staff of an organization.

“Government spending on software will total $869 million, a 10.6 percent increase from 2014,” said Anurag Gupta, Research Vice President, Gartner. “The software market will be led by growth in vertical specific software and stand-alone applications that are not modules or extensions of horizontal applications.”

“The investments in the Digital India initiative, led by a focus to allow access of government services on mobile devices (part of the mobile government), expansion on broadband and planning for smart cities, will be a stimulus for Indian governments ICT initiatives,“ said Gupta.