Indian Government to spend $6.8 bn on IT this year

BANGALORE, INDIA: Government IT spending in India will reach $6.8 billion in 2015, an increase of 5.7 percent over 2014, according to Gartner.

This forecast includes spending on internal services, software, IT services, data center, devices and telecom services.

“IT services include consulting, implementation, IT outsourcing and business process outsourcing, will be the largest overall spending category throughout 2019 within the government sector,“ said Anurag Gupta, Research Vice President, Gartner.

He added, “IT services is expected to grow 10.5 percent in 2015to reach $1.7 billion– 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 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, up from $781 million in 2014, led by growth in vertical specific software.

“Various governments and service 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 e-governance initiatives.”