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Big projects fueling government IT spending in India

Karl Flinders

Indian central, state and regional government agencies will have spent 393bn INR on IT in 2013 as large projects take center stage.

Projects such as the Aadhaar (UID) project, the Passport

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Seva scheme are projects designed to enable the government to store, manage and process huge volumes of citizen data.

There are also projects related to India's National eGovernance Plan.

According to Gartner, IT services will be subject to the most government spending. Both the Aadhaar (UID) project and Passport Seva scheme are heavily outsourced.

“IT services will be the largest overall spending category throughout 2017 within the government sector,” said Anurag Gupta, research director at Gartner. He said it will grow 7.7% in 2013 and reach 86bn INR in 2013, up from 80bn INR with the business process outsourcing segment of this, which is critical to big data projects, growing by 15.3%.

Gartner said: “The ICT industry will benefit from various eGovernment projects, which are part of the National eGovernance Plan, with investments in 31 Mission Mode Projects.”

The government of Andhra Pradesh is an example. It is improving application delivery technology from Array Networks to optimise its WAN to support finance department across 400 locations with a 123m INR investment in Array aCelera WAN optimization controller. The deal demonstrated the investments that must be made in the IT infrastructures that underpin big projects.

Central government has mandated the computerization of financial applications and because most users are located in remote regions, where connectivity is low, bandwidth optimization and application acceleration were necessary.

The technology is being implemented by IT services firm NIIT. “This will be one of the largest deployments of WAN optimization in India outside of the enterprise sector,” said Shibu Paul, Country Manager for India, Middle East and ASEAN markets at Array Networks.

Meanwhile, spending related to IT staff pay and benefits will be the fastest growing part of IT spending in Government, with a 12.8% in 2013.