'Digital India' To Shoot Up Govt IT spending
A strong focus on ‘Digital India’ initiative and use of technology to deliver citizen services is likely to increase IT spending in the Indian government sector which research firm Gartner predicts will grow 5 percent to touch $7.2 billion in 2015. For the current year, government IT spending is on pace to total $6.6 billion, Gartner said in a statement.
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, A Gupta said.
IT services are expected to grow 10.9 percent in 2014 to reach $1.8 billion in 2015, up from $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 $788 million in 2014 and further to $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.
E-governance initiatives by various governments aided by expansion of affordable broadband connectivity and mobile solutions will generate more business for ICT service providers, says the report.
Moreover, salaries and perks paid to IT services staff that plan, develop, implement and maintain information systems of organizations will also grow 9.4 percent in 2014, says Gartner.
Finally, more government agencies in India will spend in social media and the next one year will see widespread adoption of Facebook and Twitter account by government agencies – both Central and State governments, updating thier achievement and historical landmarks as well as for answering customer queries. In an interview to NDTV, I&B Minister Shri Manish Tewari mentions, “The prospect of social media as a governance tool has been recognized by the government of India, and there will be a greater spends in this area.”
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. “India has ambitious plans to build several smart cities, and this will create new opportunities,” Gupta said.
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