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Gartner forecasts Indian Government spending will reach $7.2 billion in 2016

12 Oct 16

Government spending on IT in India will reach US $7.2 billion in 2016, a 2.4% increase compared to last year, new Gartner research has shown.

The report, titled Forecast: Enterprise IT Spending for the Government and Education Markets, Worldwide, 2014-2020, 2Q16 Update, shows that Indian Government IT spending includes data center, devices, IT services, internal services, software and telecom services across both state and local government.

"Government spending on software will total $885 million USD in 2016, a 4.5 percent increase from 2015. The software market will be led by growth in applications," explains Moutusi Sau, principal research analyst at Gartner.

According to the report, IT services is the main growth segment - a 9.3% growth rate that will reach $1.6 billion. IT services cover everything from business process outsourcing, consulting, hardware support, implementation, IT outsourcing, and software support.

The business process outsourcing will account for 21% growth on its own, the report predicts. In addition, the telecom services market will achieve 5.2% growth and become a market worth $US 1.6 billion. The mobile network services sub-segment already accounts for $909 million.

Meanwhile, internal government services such as IT salaries and benefits will achieve 5.8% growth in 2016, to be worth $1.5 billion.

"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," explains Sau.

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