BackGovt IT spending to rise 4.3% to $6.4 billion in 2014 : Gartner
IT services will corner the maximum share of government IT spending, predicts Gartner
Premium
Hyderabad: Information technology (IT) spending by different government agencies in India will increase 4.3% annually to $6.4 billion in 2014, research firm Gartner Inc. forecast on Monday.
State and regional administrations and central government agencies will open their purses this year to buy hardware and software, deploy internal and external IT services and spend on telecommunications, Gartner said.
IT services will corner the maximum share of government IT spending, it said.
“IT services, which include consulting, implementation, IT outsourcing and business process outsourcing (BPO), will be the largest overall spending category throughout the forecast period within the government sector," Anurag Gupta, research director at Gartner, said in a statement.
Government spending on IT services is expected to increase to $1.46 billion in 2014 from $1.37 billion in 2013, Gartner said, adding that BPO spending will grow 16.3% in the same period.
Governments are expected to shell out $758 million to buy software, marking a 10.3% increase over last year. The expenditure on software will be led by stand-alone, industry-specific software applications, the research firm said.
E-governance initiatives by various governments aided by expansion of affordable broadband connectivity and mobile solutions will generate more business for information and communications technology (ICT) service providers, Gartner said.
Salaries and perks paid to information services staff that plan, develop, implement and maintain information systems of organizations will also grow 9.4% in 2014, it said.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
