Gartner says government IT spending in India to reach $7.2 billion in 2016

by Brian Pereira | Oct 4, 2016

Mumbai, India, 3rd October 2016 – The government in India is on pace to spend $7.2 billion US Dollars (USD) on IT products and services in 2016, an increase of 2.4 percent 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 9.3 percent in 2016 to reach $1.8 billion USD – with the business process outsourcing sub-segment growing 21 percent.

Telecom services will be a $1.6 billion USD market, with the mobile network services sub-segment recording the fastest growth with 5.2 percent in 2016 to reach $909 million USD.

“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. “The software market will be led by growth in applications.”

Internal services will growth 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 employees that plan, develop, implement and maintain information systems.

“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 Ms. Sau.

Further information on government sector IT spending is available in the Gartner report, Forecast: Enterprise IT Spending for the Government and Education Markets, Worldwide, 2014-2020, 2Q16 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.

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Brian Pereira

Brian Pereira is an Indian journalist and editor based in Mumbai. He founded Digital Creed in 2015. A technology buff, former computer instructor, and software developer, Brian has 29 years of journalism experience (since 1994). Brian is the former Editor of CHIP India, InformationWeek India and CISO Mag. He has served India's leading newspaper groups: The Times of India and The Indian Express. Presently, he serves the Information Security Media Group, as Sr. Director, Editorial. You'll find his most current work on CIO Inc. During his career he wrote (and continues to write) 5000+ technology articles. He conducted more than 450 industry interviews. Brian writes on aviation, drones, cybersecurity, tech startups, cloud, data center, AI/ML/Gen AI, IoT, Blockchain etc. He achieved certifications from the EC-Council (Certified Secure Computer User) and from IBM (Basics of Cloud Computing). Apart from those, he has successfully completed many courses on Content Marketing and Business Writing. He recently achieved a Certificate in Cybersecurity (CC) from the international certification body ISC2. Follow Brian on Twitter (@creed_digital) and LinkedIn. Email Brian at: [email protected]

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