comscore IT spending by Indian government to reach $7.2 billion in 2016: Gartner
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IT spending by Indian government to reach $7.2 billion in 2016: Gartner

The IT spending would be on departments like internal services, software, IT services, data centre, devices and telecom services. It would also be an increase of 2.4 percent over 2015.

  • Updated: October 3, 2016 6:50 PM IST
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A new report released by global research firm Gartner states that the Indian government will spend $7.2 billion on IT products and services in 2016, which is an increase of 2.4 percent over 2015. The forecast for the spending includes departments like internal services, software, IT services, data center, devices and telecom services, noted the report. IT services which includes consulting, software support, business process outsourcing, IT outsourcing, implementation and hardware support, is expected to grow 9.3 percent in 2016 to reach a total of $1.8 billion. Telecom services will be a $1.6 billion market, with the mobile network services sub-segment recording the fastest growth with 5.2 percent in 2016 to reach $909 million. Also Read - WhatsApp violates Indian users' rights by denying dispute resolution claims Centre

Also Read - Global smartphones sales to decline by 3.2% in 2019: Gartner

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“Government spending on software will total $885 million in 2016, a 4.5 percent increase from 2015,” said Moutusi Sau, principal research analyst at Gartner. Internal services which include salaries and benefits paid to the information services staff of an organization will grow 5.8 percent in 2016 to reach $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,” Sau added. As for enterprise security spending that includes hardware, software and services, Gartner had predicted that it is set to reach $1.12 billion in India in 2016. This would be an increase up to 10.6 percent from $1.01 billion.

Security spending will continue to grow in 2017 when revenue is projected to reach $1.24 billion, the firm announced during its inaugural Gartner Security and Risk Management Summit . The revenue of security services that includes consulting, implementation, support and managed security services accounted for 61 percent of this total revenue in 2015 and this proportion will increase to 66 percent by 2020, the company said in a statement.

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  • Published Date: October 3, 2016 6:45 PM IST
  • Updated Date: October 3, 2016 6:50 PM IST



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