Indian governments are likely to spend about $7 billion (Rs 47,117 crore) for buying Information Technology (IT) products and services in 2016, a 3.1 per cent increase over the previous year, said a new report by research firm Gartner on Thursday. This will include spending by state governments as well as the central government on IT services, software, data centres, devices, telecom service and internal services, which essentially refers to salaries and benefits paid to the information services staff of an organisation.
IT services, which entails consulting, software support, business process outsourcing, IT outsourcing, implementation, and hardware support, is projected to grow 8.8 per cent in 2016 to reach $1.6 billion. While telecom services will cross $1.5 billion this year, with the mobile network services sub-segment recording the fastest growth of 3.5 per cent to reach $793 million. The government will spend $938 million on software, about 10 per cent more than what it spent last year. Internal services are also expected to grow 5.8 per cent in 2016 to reach $1.5 billion.