Govt's Tech Spend To Touch $7.2 Bn In 2016: Gartner

by CXOtoday News Desk    Oct 03, 2016


The government in India is on pace to spend USD 7.2 billion US Dollars (USD) on IT products and services in 2016, an increase of 2.4 per cent 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 per cent in 2016 to reach USD1.8 billion USD – with the business process outsourcing sub-segment growing 21 per cent.

Telecom services will be a USD1.6 billion USD market, with the mobile network services sub-segment recording the fastest growth with 5.2 per cent in 2016 to reach USD 909 million USD.

“Government spending on software will total USD 885 million USD in 2016, a 4.5 per cent increase from 2015,” said Moutusi Sau, principal research analyst at Gartner. “The software market will be led by growth in applications.”

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Internal services will growth 5.8 per cent in 2016 to reach USD 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 Sau.