Govt to increase IT spending: Gartner

Software spending is predicted to grow10.2% in 2015 to reach $860 million


Software spending will be led by growth in vertical specific software or software applications that are unique to a vertical industry. Photo: Hemant Mishra/Mint
Software spending will be led by growth in vertical specific software or software applications that are unique to a vertical industry. Photo: Hemant Mishra/Mint

New Delhi: The Indian government is likely to spend $6.8 billion on information technology (IT) in 2015, an increase of 5.7 % over the previous year, according to a new report by Gartner Inc. that was released on Thursday.

The Centre and the states are likely to spend on heads such as internal services, software, IT services, data centre, devices and telecom services. Internal services comprise salaries and benefits paid to the information services staff of an organization.

“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, vice-president (research), Gartner. “IT services is expected to grow 10.5% in 2015 to reach $1.7 billion, with the business process outsourcing segment growing 21.2%.”

While spending on internal services will increase 8.8% to reach $1.6 billion in 2015, software spending will grow 10.2% in 2015 to reach $860 million, up from $781 million in 2014, led by growth in vertical specific software or software applications that are unique to a vertical industry, the report said.

“Various governments and providers will target India’s smart cities initiative in the 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 e-Government initiatives.”

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