07/05/2015 11:28 AM IST | Updated 07/05/2015 11:28 AM IST

Modi Govt To Spend More On Tech For Digital India, Smart Cities, Says Study

FILE- In this April 30, 2014 file photograph, India's main opposition Bharatiya Janata Party’s prime ministerial candidate Narendra Modi holds his party’s symbol and looks into his phone after casting his vote in Ahmadabad, India. In the Twitterverse ruled by President Barack Obama, India's new Prime Minister Modi may soon overtake the White House on Twitter.An analysis of Twitter accounts — showing the emphasis some governments put on digital diplomacy as a 21st-century tool for statecraft — projects Modi, already the fifth most-followed world leader on Twitter with 4.95 million followers, will soon overtake the White House's 4.97 million.(AP Photo/Ajit Solanki, file)

Global consultancy firm Gartner today estimated that the government's technology spend in 2015 will jump 5.7 per cent to US$ 6.8 billion on the back of IT services growth.

The forecast includes spending on internal services, software, IT services, data centers, devices and telecom services by both local and national governments, it said.

The estimate comes in the wake of the high-decibel 'Digital India' and 'Smart Cities' initiatives announced by the government, which have stoked interest of country-based IT companies that garner large chunks of revenues from outside the country.

"IT services are expected to grow 10.5 per cent in 2015 to reach $1.7 billion, with the business process outsourcing segment growing 21.2 per cent," said Anurag Gupta, Vice President, Research.

The IT services segment, which includes consulting, implementation, IT outsourcing and business process outsourcing, will continue to grow till 2019, he added.

Internal IT spending, which covers salaries and benefits paid to the information services staff, will grow 8.8 per cent to $1.6 billion in 2015, Gartner predicted.

Software spending would be up 10.2 per cent to $860 million, led by vertical-specific stand-alone applications, it added.

"Various governments and providers will target India's smart cities initiative in the next few years, with an emphasis on citizen engagement. We also expect developments in integrating services through Aadhaar cards and mobile technologies for various e-government initiatives," Gupta said.

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