Government IT spending set to touch $6.4 b

Government IT spending in India will reach $6.4 billion in 2013, a 7 per cent increase over 2012, according to research firm Gartner Inc.

“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. “IT services spending is expected to grow 7.7 per cent in 2013 to reach $1.4 billion in 2013, up from $1.3 billion in 2012 – with the business process outsourcing segment growing by 15.3 per cent.”

The forecast includes spending by state and regional government and central government agencies on internal IT (including personnel), hardware, software, external IT services and telecommunications.

Gartner said in its forecast that internal government services will achieve the highest growth rate amongst the spending categories – forecast to be 12.8 per cent in 2013. 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 has been forecast to achieve a growth rate of 10.5 per cent in 2013 to reach $709 million in 2013, up from $642 million in 2012, led by growth in vertical-specific software.

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