With the government’s focus on the Digital India programme, the tech spending in the country is likely to go up. According to research firm Gartner, Indian government will spend $7 billion on IT products and services in 2016. This is an increase of 3.1% over 2015 figure.
The central and state agencies will spend on internal services, software, IT services, data center, devices and telecom services.
IT services which includes – consulting, software support, business process outsourcing, IT outsourcing, implementation, and hardware support – is expected to grow 8.8% in 2016 to reach $1.6 billion – with the business process outsourcing (BPO) sub-segment growing by 22% in India.
According to Gartner, telecom services will be a $1.5 billion market, with the mobile network services sub-segment recording the fastest growth of 3.5% in 2016 to reach $793 million.
“Government spending on software will total $938 million in 2016, a 9.9% increase from 2015,” said Moutusi Sau principal research analyst at Gartner, adding that the software market will be led by growth in infrastructure.
Internal services will grow 5.8% in 2016 to reach $1.5 billion. Internal services refer to salaries and benefits paid to the information services staff of an organisation. The information services staff includes all company employees that plan, develop, implement and maintain information systems.
“The Digital India initiative continues to be drive investments in the government, led by access of government services on mobile devices and expansion on broadband services,” said Sau.