Indian government to spend US$7.2 billion on IT this year

This is 2.4 percent higher compared to IT spending in 2015.

By Adrian M. Reodique
Oct. 10, 2016

The government of India is forecasted to spend US$7.2 billion on IT products and services by the end of this year, according to market research firm Gartner.

The forecasted value showed an increase of 2.4 percent as compared to 2015. This includes IT spending on internal services, IT services, data centre, software, devices, and telecom services.

Gartner said the IT services in the country - which includes consulting, business process outsourcing (BPO), IT outsourcing, implementation, software support, and hardware support - is expected to grow by 9.3 percent this year to reach US$1.8 billion, with BPO forecasted to grow by 21 percent.

"Government spending on software will total $885 million USD in 2016, a 4.5 percent increase from 2015," said Moutusi Sau, Principal Research Analyst at Gartner, in a press release. "The software market will be led by growth in applications."

Meanwhile, telecom services are expected to amount US$1.6 billion this year, with mobile network services to record the fastest growth with 5.2 percent and reach US$909 million.

For internal services, Gartner said it will grow by 5.8 percent this year to reach US$1.5 billion. These services refer to salaries and benefits paid to the information services staff of organisations.

"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 Sau.