Government IT spending in India will reach $6.8 billion US dollars (USD) in 2015, an increase of 5.7 percent over 2014, according to Gartner, Inc. This forecast includes spending on internal services, software, IT services, data center, devices and telecom services. Government comprises local government and national government.

“IT services, which includes consulting, implementation, IT outsourcing and business process outsourcing, will be the largest overall spending category throughout 2019 within the government sector,“ said Dr Anurag Gupta, research vice president at Gartner. “IT services is expected to grow 10.5 percent in 2015to reach $1.7 billion USD – with the business process outsourcing segment growing 21.2 percent.”

Internal services IT spending will increase 8.8 percent in 2015 to reach $1.6 billion USD in 2015. Internal services refer to salaries and benefits paid to the information services staff of an organization. The information services staff includes all company employees that plan, develop, implement and maintain information systems.

Software spending will grow 10.2 percent in 2015 to reach $860 million USD, up from $781 million USD in 2014, 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).

“Various governments and providers will target India’s smart cities initiative in next few years, with an emphasis on citizen engagement,” said Dr. Gupta. “We also expect developments in integrating services through AADHAR cards and mobile technologies for various eGovernment initiatives.”