IT vendors expect cash bonanza from India

Narendra Modi, India's PM - picture Wikimedia CommonsNext year the Indian government is likely to spend a staggering $7.2 billion on information technology, promising rich pickings for vendors that can surf the wave.

According to market research firm Gartner, that figure will be a five percent increase over this year and the $7.2 billion cake includes plums that cover hardware, software, IT services and telecomms.

Anurag Gupta, a research director on the subcontinent for Gartner, reckons IT services will be worth $1.8 billion in 2015, and the business process outsourcing segment will grow by 22 percent during this year.

Government spending on software is likely to be worth $910 million in 2015 – much of that being on vertical software.

Gupta said the new government’s aims are only able to be achieved by using technology and digital government, in particular broadband penetration, cloud initiatives, and public private partnership.