Government IT spending in India will total $7.2 billion in 2015, a 5 percent increase over 2014, according to Gartner. Government IT spending is on pace to total $ 6.6 billion in 2014.
This forecast includes spending by the government sector (government is composed of state and regional government 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, “ said Anurag Gupta, research director at Gartner. “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 the business process outsourcing segment growing 22 percent during 2014.”
Internal services will achieve a growth rate of 9.9 percent in 2014. 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. The software market will achieve the highest growth rate within spending categories. Government spending on software will total $788 million in 2014, and it will grow to $910 million in 2015. Software spending will be 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).
“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,” said Mr. Gupta.” We expect a focus on expanding broadband penetration, accelerating digitization of core government processes, leveraging mobility to engage the citizens, cloud initiatives and public private partnership. India has ambitious plans to build several smart cities, and this will create new opportunities.”
Further information on government sector IT spending is available in the Gartner report, “Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2012-2018, 3Q14 Update.” The report is available on Gartner's website at http://www.gartner.com/document/2868719. The forecasts provide total enterprise IT spending, including internal spending and multiple lines of detail for spending on hardware, software, IT services, and telecommunications for vertical industries and 43 countries within seven geographies.
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