Govt in India will spend $7bn on IT in 2016

BANGALORE, INDIA: 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.

“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 Moutusi Sau, principal research analyst at Gartner.

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.

Government spending on software will total $938 million USD in 2016, a 9.9 percent increase from 2015.

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.