Government IT Spending in India to Reach USD 7.2 Billion in 2016

IT services to grow 9.3% in 2016. Fastest growth in Network services – a sub segment of Telecom


The government in India is on pace to spend USD 7.2 billion on IT products and services in 2016, an increase of 2.4% over 2015, according to Gartner. 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% in 2016 to reach USD 1.8 billion – with the business process outsourcing sub-segment growing 21%.


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


Government spending on software will total USD 885 million USD in 2016, a 4.5%
increase from 2015. The software market will be led by growth in applications, as per Gartner.


Internal services will growth 5.8% in 2016 to reach USD 1.5 billion. 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, as per Gartner.

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