TNN | May 7, 2015, 04.03PM IST
CHENNAI: Government IT spending in India will reach $6.8 billion in 2015, a 5.7% increase over 2014, according to IT research advisory Gartner.
Gartner expects this growth will be driven by the government's smart city initiative, new platforms like Aadhaar and emphasis on facilitating key services through online platforms.
Gartner's estimate includes spending on internal services, software, IT services, data centre, devices and telecom services.
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| "IT services, which 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 at Gartner. |
Gupta added that IT services were expected to grow 10.5% in 2015 to reach $1.7 billion, with the business process outsourcing ( BPO) segment growing 21.2%.
"Various governments and 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 Aadhaar cards and mobile technologies for various eGovernment initiatives."
According to Gartner's forecast, internal services IT spending will increase 8.8% to reach $1.6 billion in 2015. Internal services refer to salaries and benefits paid to the information services staff of an organization.
Software spending is anticipated to grow 10.2% in 2015 to reach $860 million, up from $781 million in 2014, led by growth in vertical specific software (software applications that are unique to a vertical industry).