Government IT Spending in India Forecast to Reach US$ 7.2 Billion in 2015: Gartner

Govt spending on software will total US$ 788 million in 2014 and grow to US$ 910 million in 2015

Government IT spending in India will total US$ 7.2 billion in 2015, a 5% increase over 2014, according to Gartner Inc. Government IT spending is on pace to total US$ 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.

Anurag Gupta, research director at Gartner says, "IT services, which includes consulting, implementation, IT outsourcing and business process outsourcing, will be the largest overall IT government spending category through 2018. IT services are expected to grow 10.9% in 2014 to reach US$ 1.8 billion in 2015, up from US$ 1.6 billion in 2014 - with the business process outsourcing segment growing 22% during 2014."

Internal services will achieve a growth rate of 9.9% 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 US$ 788 million in 2014, and it will grow to US$ 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).

Anurag Gupta, research director at Gartner said, "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. 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."

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