Indian Government IT Spending to reach USD 7 Billion in 2016: Gartner

Government spending on software to increase 9.9%; IT, followed by Telecom to be biggest markets. Mobile network to have fastest growth

The Indian government will spend USD 7 billion on IT products and services in 2016, an increase of 3.1% over 2015, according to Gartner.


This includes spending from both state and center governments on internal services, software, IT services, data center, devices and telecom services.


Highest expenditure will be in IT services of USD 1.6 billion. This is a growth of 8.8% from 2015. Business process outsourcing, a sub-segment of IT services, is expected to grow by 22%. IT services as whole include consulting, software support, business process outsourcing, IT outsourcing, implementation and hardware.


Telecom services and ‘Internal Services’ will become the second biggest markets worth USD 1.5 billion each. Internal services will growth 5.8% in 2016. In the telecom services sector the ‘mobile network’ services sub-segment is predicted to grow the fastest, at 3.5% in 2016 to reach USD 793 million.


Internal services refer to salaries and benefits paid to the information services staff (employees involved in planning, developing, implementing and maintain information systems) of an organization.


Government spending on software will total USD 938 million in 2016, a 9.9% increase from 2015, as per Gartner.

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