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Mumbai, India, October 3, 2016

Gartner Says Government IT Spending in India to Reach $7.2 Billion in 2016

The government in India is on pace to spend $7.2 billion US Dollars (USD) on IT products and services in 2016, an increase of 2.4 percent over 2015, according to Gartner, Inc. This forecast includes spending on internal services, software, IT servicesdata 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 percent in 2016 to reach $1.8 billion USD – with the business process outsourcing sub-segment growing 21 percent.

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

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

Internal services will growth 5.8 percent in 2016 to reach $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 Ms. Sau.

Further information on government sector IT spending is available for Gartner clients in the report, Forecast: Enterprise IT Spending for the Government and Education Markets, Worldwide, 2014-2020, 2Q16 Update. The forecasts provide total enterprise IT spending, including internal spending and multiple lines of detail for spending on hardware, software, IT services, and telecommunications for vertical industries and 43 countries within seven geographies. 

Emerging technologies and trends will be discussed at Gartner Symposium/ITxpo 2016, November 15-18 in Goa, India. Members of the media can register for the event by contacting Sony Shetty at sony.shetty@gartner.com.

About Gartner Symposium/ITxpo

Gartner Symposium/ITxpo is the world's most important gathering of CIOs and other senior IT executives. This event delivers independent and objective content with the authority of the world's leading IT research and advisory organization, and provides access to the latest solutions from key technology providers. Gartner's annual Symposium/ITxpo events are key components of attendees' annual planning efforts. IT executives rely on these events to gain insight into how their organizations can use IT to overcome business challenges and improve operational efficiency.

Additional information from the event will be shared on Twitter at http://twitter.com/Gartner_inc and using #GartnerSYM.

About Gartner

Gartner, Inc. (NYSE: IT), is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities today and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and objective resource for more than 15,000 organizations in more than 100 countries — across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit gartner.com.

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