Digital India to push up govt spending on IT products

India will see a growth of over 5% while the world goes through decline of nearly 4%

GN Bureau | September 23, 2015



The government is set to increase its spending on information technology products and services by 5.2% to $6.88 billion this year as it steps up efforts to connect more people on Internet, says IT research firm Gartner.

This huge jump is due to the government’s initiatives to create a digitally-connected India through greater access to government services on mobile devices, wider reach of broadband network and creating more smart cities will drive its spending on information and communication technology.

The spending on services, which includes consulting, IT outsourcing and back-office related work, is likely to grow 10% to $1.6 billion, the data from Gartner showed. The agency expects investments in telecommunications services to grow 3% to $1.6 billion, driven by the rise in mobile network services. Mobile network services may account for half of the spending in telecommunications services, it said.

The government will be spending $18 billion on a massive campaign called Digital India that aims to more get people online faster and connect as many as 250,000 villages across the country using Internet by 2019.

The initiative is also aimed at providing electronic governance and universal phone connectivity across the country, and bridge the gap between those who have and don’t have access to Internet.

“Government spending on software will total $869 million USD in 2015, a 10.6 percent increase from 2014,” said Anurag Gupta, research vice president at Gartner. “The software market will be 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.”

Internal services will growth 8.8 percent in 2015 to reach $1.6 billion. 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.

“The investments in the ‘Digital India’ initiative, led by a focus to allow access of government services on mobile devices (part of the mobile government), expansion on broadband and planning for smart cities, will be a stimulus for Indian government’s ICT initiatives,“ said Gupta.

Fall in world spending
Worldwide IT spending across vertical industries is forecast to total $2.69 trillion in 2015, a 3.5 per cent decrease from 2014. Analysts said the rising US dollar is chiefly responsible for the slowdown.

"Appreciation of the US dollar (mainly against the euro, yen and the ruble), along with the relative slowdown of emerging markets (particularly Russia, Brazil and China), had a double impact on IT spending in 2015, and explains the downward revision in the forecast," said Gupta. "Unsurprisingly, most technology firms reporting revenue in US dollars have taken a negative hit on their quarterly revenue earnings."

Although all industries are expected to experience negative growth in 2015, given currency exchange rates, Gartner's projections for the top three growth industries are consistent with the previous quarter's forecast, with retail, banking and securities, and healthcare providers leading industry growth.

Comments

 

Other News

Gandhian movement after Gandhi failed: Ram Guha

The Gandhian movement in India, after Gandhi’s death, failed, says Ramachandra Guha, and blames Vinoba Bhave for it. But the movement found new, fertile grounds around the world and succeeded in bringing about a change in South Africa, the US and elsewhere. It is high time it returned home. Of cour

When religion, politics and Bollywood come together

Tavleen Singh, noted journalist and political commentator, has turned to fiction, with her debut novel ‘The Actor’ (HaperCollins India). Set in the near future, it has a superstar, Amit Singh, turning to politics, when the political landscape is dominated by prime minister Guru Gaynendraj

Cabinet approves setting up of Integrated Transport & Logistics Authority

The union cabinet, chaired by prime minister Narendra Modi, on Tuesday approved the setting up of a Special Purpose Vehicle (SPV), called Integrated Transport & Logistics Authority (ITLA), to strengthen research, planning, appraisal, monitoring and impact assessment within the broad domains of Transp

Why foundational literacy and numeracy is key to school education

Foundational Literacy and Numeracy (FLN) are often described as the building blocks of education. Yet, their significance goes well beyond a child’s ability to read a sentence, write a response or solve a basic mathematical problem. These foundational skills shape how children understand the world,

When police data becomes the algorithm

For decades, policing has followed a familiar sequence: a crime occurs, the police respond, an investigation produces records and those records become part of the institutional memory of the criminal justice system. Artificial intelligence is beginning to alter that sequence. Instead of merely recording

Before India voted, the framers worried about the referee

“We are making a Constitution forever and not only for today.” Shibban Lal Saksena said this in the Constituent Assembly on June 15, 1949. He was warning that a ruling party might one day choose a loyalist to run India’s elections. Seventy-seven years later, the Supreme Court is wrestli

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter