There is a very good reason why information technology spending levels in countries such as India are important for communication providers. IT spending includes communications as a segment. When IT grows, communications grows. When IT shrinks, communications tends to shrink.
But some segments might be more important than others. Compared to many other markets, a higher percentage of government IT spending in India and possibly elsewhere goes to communications services.
The government in India will spend US$6.88 billion on IT products and services in 2015, an increase of 5.2 percent over 2014, according to Gartner.
Telecom services will be a $1.6 billion market. That means telecom services represent 23 percent of overall IT spending, a far-higher percentage than would tend to be the case in developed markets.
The mobile network services will reach $787 million, representing 11 percent of total IT spending by Indian government entities.
The forecast includes spending on internal services, software, IT services, data center, devices and telecom services by state, local and national government.
IT services (which includes consulting, implementation, IT outsourcing and business process outsourcing) is expected to grow 10 percent in 2015 to reach $1.6 billion USD – with the business process outsourcing sub-segment growing by 21 percent.