Gartner reports Indian Government's IT spending to reach USD 6.88 billion in 2015

Today a research firm Gartner predicted in its report that the spending by Indian government sector on IT products and services is expected to grow by 5.2 per cent to USD 6.88 billion which works out to about Rs 45,402 crore this year.

Gartner forecasts that the spending on internal services, software, IT services, data centre, devices and telecom services, comprises the total expenditures by state and local governments and the Union government.

The Government is taking interest by the investments in the 'Digital India' initiative, led by a focus to allow access of government services on mobile devices, expansion on broadband and planning for smart cities.

IT services which includes consulting, implementation, IT outsourcing and business process outsourcing are expected to grow 10 per cent in 2015 to reach USD 1.6 billion. The BPO sub segment is growing by 21 per cent, while the telecom services are expected to become 1.6 billion market. The mobile network services sub segment is showing a faster growth around 3 per cent in 2015 to reach USD 787 million.

Government spending on software will amount to around USD 869 million in 2015, rising by 10.6 per cent from 2014. The software market will be led by growth in vertical specific software i.e. software applications that are unique to a vertical industry.

Internal services including salaries and benefits paid to the information services staff of an organisation are forecasted to grow by 8.8 per cent in 2015 to reach USD 1.6 billion. The information services staff includes all company employees that plan, develop, implement and maintain information systems.

With the government's initiatives and more spending on the Indian IT this sector is expecting a good sector growth by end of 2015.