As per the report by Gartner, the spending on IT in the government sector is set to increase by 5% till next year. This is because of the ‘Digital India’ initiative of the government, which aims to provide broadband connectivity in all the parts of the country. The research firm also states that, presently the government is spending total $6.6 billion on the IT sector, which will increase to $7 million by 2015.
Speaking about the research findings, Anurag Gupta, research director, Gartner said, “IT services, which include consulting, implementation, IT outsourcing and business process outsourcing, will be the largest overall IT government spending category through 2018. The IT services are expected to grow 10.9% in 2014 to reach USD 1.8 billion in 2015, up from USD 1.6 billion in 2014, with business process outsourcing segment growing 22% during 2014.”
The firm also predicts that the spending will incorporate government sector (of state, regional and central government agencies) on internal IT (including personnel), hardware, software, external IT services and telecommunications. In this breakdown the internal services includes salaries and benefits paid to information services staff of an organisation, which is expected to grow 9.9% in 2014. Moreover, the firm also states that the software market is set to witness the growth of total USD 788 million in 2014 and further to USD 910 million in 2015.
Gupta further added, “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.”
Along with this Gartner believes in helping India plans to build several smart cities, and this will create new opportunities.