Government IT spending in India will reach $6.4 bn in 2013, a 7 percent increase over 2012, according to Gartner. The forecast includes state and central government spending on internal IT, hardware, software, external IT services and telecommunications.
IT services, which includes consulting, implementation, IT outsourcing and business process outsourcing, will be the largest overall spending category throughout 2017 within the government sector, said Anurag Gupta, research director at Gartner.
Services spending is expected to growh 7.7% in 2013 to reach $1.4 bn in 2013, up from $1.3 bn in 2012. The BPO segment will grow 15.3%. Internal services will achieve the highest growth rate amongst the categories of government IT spending in India.
Software will achieve a growth rate of 10.5 percent in 2013 to reach $709 mn in 2013, up from $642 million in 2012, led by growth in vertical specific software.
The ICT industry will benefit from various eGovernment projects, which are part of the National eGovernance Plan, with investments in 31 Mission Mode Projects like Unique Identification Authority (UIDAI), which is delivering ‘Aadhaar’ numbers (a target of covering over 600 Million citizens by 2014).