Government IT Spending In India To Reach $6.4 Bn

by CXOtoday News Desk    Feb 26, 2014

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IT spending by different government agencies in India will increase 4.3% annually to $6.4 billion this year, predicts research firm Gartner. This forecast includes spending by government on IT personnel, hardware, software, external IT services and telecommunications.

“IT services, including consulting, implementation, IT outsourcing and BPO, will be the largest overall spending category throughout the forecast period within the government sector,” said Anurag Gupta, research director, Gartner.

He added that IT services are expected to grow 3.8% in 2013 to reach $1.46 billion in 2014, up from $1.37 billion in 2013 – with the BPO segment growing 16.3% in 2014.”

Software will achieve the highest growth rate within spending categories with 10.3% in 2014 to reach $758 million this year, up from $687 million last year, led by growth in vertical specific software. Gartner explains these software applications are unique to a vertical industry and are stand-alone applications that are not modules or extensions of horizontal applications.

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% 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 a recent 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.”