The initiative will work on 40 areas in eight domains -- Energy & water, infrastructure, planning & buildings, Transportation, Public safety & justice, Tourism, recreation & culture, Education, Health and Social services & government administration.
Microsoft said in a statement that these areas will help address 90 per cent of the challenges cities face, and CityNext will address them through its partner network of more than 430,000 technology experts across the globe.
In India, TCS and Wipro are working with Microsoft for the initiative, with other leading system integrators also joining the CityNext ecosystem, it added.
CityNext helps city administrators create a comprehensive technology framework by integrating existing citizen centric solutions and providing access to them via the cloud, social and mobile.
It also allows city administrators to monitor the key metrics of their city through customised analytics and dashboards.
"By 2030, India will have more than 69 cities with a population of more than one million. In fact, an estimated 590 million people will be living in cities," Microsoft India Chairman Bhaskar Pramanik said.
As India prepares to modernise its old infrastructure, city leaders have to meet these growing demands with tight budgets and greater citizen expectations, he added.
In India, the deployment of Microsoft Dynamics AX (2009) by Delhi Integrated Multi-Modal Transit System Ltd improved its efficiency, reduced costs and eliminated redundant manual processes.
Other examples of citizen-centric projects involving Microsoft and partners are CCTNS (Crime and Criminal Tracking Network System) project and eight million Live@Edu accounts (as of June 30, 2013) in many of the 10,000 technical colleges and institutes under All India Council for Technical Education.