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Government IT spending to reach $7.2 bn in 2015

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Government’s IT spending in India will reach $7.2 billion in 2015, a 5 per cent increase from 2014, according to Gartner.

This forecast includes spending by the government on internal IT (including personnel), hardware, software, external IT services and telecommunications.

“IT services, which includes consulting, implementation, IT outsourcing and business process outsourcing, will be the largest IT government spending category through 2018, “ said Anurag Gupta, research director at Gartner.

“IT services are expected to grow 10.9 percent in 2014 to reach $1.8 billion in 2015, up from $1.6 billion in 2014 – with the business process outsourcing segment growing 22 percent during 2014,” he added.

Internal services, salaries and benefits paid to the information services staff, will achieve a growth rate of 9.9 percent in 2014. The information services staff includes all employees of a company who plan, develop, implement and maintain information system. The software market will achieve the highest growth rate within spending category. Government spending on software will reach $788 million in 2014, and it will grow to $910 million in 2015.

“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,” said Anurag Gupta. “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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