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Govt IT spending in India to reach $7.2 bn in 2015: Gartner

Govt IT spending in India to reach $  7.2 bn in 2015: Gartner

Emphasis on ‘Digital India’ initiative and use of technology to deliver citizen services is expected to help IT spending in the government sector in India to grow 5 percent to touch USD 7.2 billion in 2015, research firm Gartner said.

For the ongoing year, government IT spending is on pace to total USD 6.6 billion, Gartner said in a statement.

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The forecast includes spending by the government sector (of state, regional and central government agencies) on internal IT (including personnel), hardware, software, external IT services and telecommunications.

“IT services, which includes consulting, implementation, IT outsourcing and business process outsourcing, will be the largest overall IT government spending category through 2018,” Gartner Research director Anurag Gupta said.

IT services are expected to grow 10.9 percent in 2014 to reach USD 1.8 billion in 2015, up from USD 1.6 billion in 2014, with business process outsourcing segment growing 22 percent during 2014, he added.

Internal services, which refers to salaries and benefits paid to information services staff of an organisation, is expected to grow 9.9 percent in 2014.

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

The software market is forecast to grow at the fastest pace to total USD 788 million in 2014 and further to USD 910 million in 2015.

Software spending is expected to be led by growth in vertical specific software (software applications that are unique to a vertical industry. These are standalone applications that are not modules or extensions of horizontal applications).

“India has a new government in power with the underlying promise of ‘Less Government & More Governance’. The delivery of a citizen-centric and transparent government is only possible through the extensive use of technology and by leveraging digital government,” Gupta said.

Gartner expects focus to be on expanding broadband penetration, accelerating digitisation of core government processes, leveraging mobility to engage citizens, cloud initiatives and public private partnership, he added.

“India has ambitious plans to build several smart cities, and this will create new opportunities,” Gupta said.


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