Government IT spending is on pace to total $ 6.6 billion in 2014 and will total $7.2 billion in 2015, a 5 percent increase over 2014, according to Gartner. Gartner via its Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2012-2018, 3Q14 Update forecasts that government spending on software will total $788 million in 2014, and it will grow to $910 million in 2015. Internal services such as salaries and benefits paid to the information services staff of an organization will achieve a growth rate of 9.9 percent in 2014.
The forecast includes spending by the state goverments, regional governments and central government agencies on internal IT (including personnel), hardware, software, external IT services and telecommunications. Gartner says that software spending will be led by growth in vertical specific software (software applications that are unique to a vertical industry).
"IT services, which includes consulting, implementation, IT outsourcing and business process outsourcing, will be the largest overall IT government spending category through 2018. 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. 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. We expect a focus on expanding broadband penetration, accelerating digitisation 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. “
- Anurag Gupta, research director at Gartner
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