Government IT spending in India will increase 7 percent over 2012 to reach $6.4 billion US Dollars (USD) in 2013, according to Gartner.
Among these, IT consulting, implementation, IT outsourcing and business process outsourcing (BPO) will occupy the largest overall spending category throughout 2017 within the government sector, said Anurag Gupta, research director at Gartner.
“IT services spending is expected to grow 7.7 percent in 2013 to reach $1.4 billion USD in 2013, up from $1.3 billion in 2012 – with the business process outsourcing segment growing by 15.3 percent,” Gupta added.
Among these, internal services will achieve the highest growth rate amongst the spending categories – forecast to be 12.8 percent in 2013. Internal services refer to salaries and benefits paid to the information services staff of an organization.
Software spending will achieve a growth rate of 10.5 percent in 2013 to reach $709 million USD in 2013, up from $642 million in 2012, led by growth in vertical specific software- applications that are unique to a vertical industry.
Internal services will achieve the highest growth rate amongst the spending categories – forecast to be 12.8 percent in 2013. Internal services refer to salaries and benefits paid to the information services staff of an organization.
After years of exporting IT outsourcing (ITO) and business process outsourcing (BPO) expertise across multiple verticals globally; many large ICT companies in India are now increasingly looking inwards and targeting the Indian government ICT market, the research said.
The ICT industry will benefit from various eGovernment projects, which are part of the National eGovernance Plan. One of them includes the Unique Identification Authority (UIDAI), which is delivering ‘Aadhaar’ numbers which targets to cover over 600 Million citizens by 2014.
Another area of opportunity for ICT service providers is the GI cloud or Meghraj cloud policy announced by the government.
The rapid proliferation of affordable broadband connectivity (and mobile phones alongside) is expected to provide further opportunities in eGovernance and mobility solutions.
In addition to the central government projects such as excise, income tax, and post office, other state governments will also undertake initiatives in municipalities, land records and other joint initiatives like digital court rooms and common service centers.