Govt to spend $7.2 bn on IT in 2016

Driven by the Digital India initiative, the Indian government's spending on information technology (IT) products and services might reach $7.2 billion in 2016, up 2.4 per cent against last year, said a report by Gartner Inc.

This is $200 million more than what Gartner had projected in June. The forecast included spending by central and state governments on internal services, software, IT services, data centres, devices and telecom services.

"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," said Moutusi Sau, principal research analyst at Gartner. "The Digital India initiatives are making government processes streamlined and integrating the data repositories."
 

The government's IT spending has gradually increased from $6.4 billion in 2014, when the Narendra Modi-led government rolled out Digital India, to $6.8 billion to 2015, to reach $7.2 billion by 2016.

The Digital India initiative aims to connect 1.2 billion Indians through internet and provide government services online at an estimated investment of Rs 1.13 lakh crore over the next three to five years.

"The Digital India initiative continues to drive investments in the government, led by access of government services on mobile devices (part of the mobile government), and expansion on broadband services," Gartner had said in a recent report.

While IT services - including consulting, software support, business process outsourcing, IT outsourcing, implementation - and hardware support was expected to grow 9.3 per cent in 2016 to reach $1.8 billion. Telecom services would reach $1.6 billion, with the mobile network services sub-segment recording the fastest growth, at 5.2 per cent, in 2016 to reach $909 million, the report said.