Is there any scope for IT engineers in the government sector?

Yes, no doubt cs and it engineers can also have jobs in govt sector though the jobs are limited.
As cs or it engineers can’t write psu exam but they have other opportunities also.
They can join in drdo, isro,etc by writing their respective exams.
And sail, ongc, bhel and other government recognized companies offered junior engineers job for gate passed students. For this you have to qualified in gate exam conducted by iit’s.
Hope this will help you.
For any information you can ask me with no objections.