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Gartner: Government IT spend in India to reach $6.4 billion in 2014

The Hindu BusinessLine:  February, 2014

Mumbai: Governments in India will spend $6.4 billion on IT products and services in 2014, an increase of 4.3 per cent over 2013, according to a study by Gartner.

This forecast includes spending by Government (Government is composed of State and regional governments and Central government agencies.) on internal IT (including personnel), hardware, software, external IT services and telecommunications.

“IT services, which include consulting, implementation, IT outsourcing and business process outsourcing, will be the largest overall spending category throughout the forecast period within the Government sector,” said Anurag Gupta, research director at Gartner.

“IT services are expected to grow 3.8 per cent in 2013 to reach $1.46 billion in 2014, up from $1.37 billion in 2013 — with the business process outsourcing segment growing 16.3 per cent in 2014,” Gupta added.

Internal services (referring to salaries and benefits paid to the information services staff) will achieve a growth rate of 9.4 per cent in 2014.

The information services staff includes all company employees that plan, develop, implement and maintain information systems. Software will achieve the highest growth rate within spending categories with 10.3 per cent in 2014 to reach $758 million in 2014, up from $687 million in 2013, led by growth in vertical specific software (software applications that are unique to a vertical industry).

Information and communication technology service providers will benefit by eGovernment projects and citizen participation aided by expansion of affordable broadband connectivity and mobile solutions, it said.