Govt IT Spending In India To Rise 5.7% In 2015

by CXOtoday News Desk    May 08, 2015


Government IT spending in India will reach $6.8 billion US dollars in 2015, an increase of 5.7 percent over 2014, according to Gartner, Inc. This forecast includes local and national government’s spending on internal services, software, IT services, data center, devices and telecom services in the country. The figures are higher than that of last year when IT spending by different government agencies in India were likely to increase 4.3% to reach $6.4 billion as predicted by the research firm in 2014. 

“IT services, which includes consulting, implementation, IT outsourcing and business process outsourcing, will be the largest overall spending category throughout 2019 within the government sector,“ said Dr Anurag Gupta, research vice president at Gartner. “IT services is expected to grow 10.5 percent in 2015to reach $1.7 billion USD – with the business process outsourcing segment growing 21.2 percent.”

Internal services IT spending will increase 8.8 percent in 2015 to reach $1.6 billion USD in 2015. Internal services refer to salaries and benefits paid to the information services staff of an organization. The information services staff includes all company employees that plan, develop, implement and maintain information systems.

Software spending will grow 10.2 percent in 2015 to reach $860 million USD, up from $781 million USD in 2014, led by growth in vertical specific software (software applications that are unique to a vertical industry. These are stand-alone applications that are not modules or extensions of horizontal applications).

“Various governments and providers will target India’s smart cities initiative in next few years, with an emphasis on citizen engagement,” said Gupta. “We also expect developments in integrating services through AADHAR cards and mobile technologies for various eGovernment initiatives.”

“We see a strong growth potential in the creation of a digitally enabled India, smarter cities and Make in India as the government is looking to transform the lives of people by making them digital,” says  Anil Valluri, president, NetApp India & SAARC adding that the need of the hour is to focus on India’s technology infrastructure. “The government has also allocated a substantial amount to develop a robust networkinfrastructure across the country, on the foundation of which India’s digital economywill be built in the coming months.

Vivekanand Venugopal, VP&GM, Hitachi Data Systems agrees that the government’s focus on digitization, cloud and cyber security policies will help the industry in long-term. “This reflets in the government’s commitment to invest in the right technology infrastructure to enable this transformation,” he says.

Experts also see more government agencies in India to 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 as well as for answering customer queries.