Indian government’s IT spending to reach $6.88 billion in 2015: Gartner

New Delhi: Spending by Indian government sector on IT products and services is expected to grow 5.2% to $6.88 billion (about Rs 45,402 crore) this year, research firm Gartner said on Wednesday.

The forecast, which takes into account spending on internal services, software, IT services, data centre, devices and telecom services, comprises spending by state and local governments and national government.

“The investments in the ‘Digital India’ initiative, led by a focus to allow access of government services on mobile devices (part of the mobile government), expansion on broadband and planning for smart cities, will be a stimulus for Indian governments ICT initiatives,” Gupta said.

IT services (which includes consulting, implementation, IT outsourcing and business process outsourcing) are expected to grow 10% in 2015 to reach $1.6 billion with the BPO sub-segment growing by 21%.

Telecom services are expected to be a $1.6 billion market with the mobile network services sub-segment recording the fastest growth of 3% in 2015 to reach $787 million.

“Government spending on software will total $869 million in 2015, a 10.6% increase from 2014. The software market will be led by growth in vertical specific software (software applications that are unique to a vertical industry),” Gartner Research Vice President Anurag Gupta said.

These are stand-alone applications that are not modules or extensions of horizontal applications, he added.

Internal services (salaries and benefits paid to the information services staff of an organisation) are forecast to grow 8.8% in 2015 to reach $1.6 billion.

The information services staff includes all company employees that plan, develop, implement and maintain information systems.