Indian government to spend $6.4bn on IT, ITeS, communication technologies in 2014

Governments in India will spend $6.4 billion on IT products and services in 2014, a 4.3 per cent increase over the previous year.

This forecast, by global research and advisory firm Gartner, includes spending by government on internal IT (including personnel), hardware, software, external IT services and telecommunications.

Government, according to the firm comprises state and regional governments and central government agencies.

''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 will achieve a growth rate of 9.4 per cent in 2014.

Internal services refer to salaries and benefits paid to the information services staff including all employees that plan, develop, implement and maintain information systems of an organisation.

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. These are stand-alone applications that are not modules or extensions of horizontal applications).

Information and Communication Technology service providers will benefit by eGovernment projects and citizen participation aided by expansion of affordable broadband connectivity and mobile solutions.