A spending windfall from the government is awaiting IT companies. The Centre and state governments may collectively award more than a billion dollars? worth of technology projects, including the UID-managed service provider contract, Crime and Criminal Tracking Network System projects, commercial tax and treasury, Department of Posts and spending by the municipalities as well as different state agriculture departments, in the next six months.
The government spending, which is about 30% of the domestic tech spending, is likely to shoot upwards over the next few years. According to market research firm Gartner, the?Indian IT services market is on track to reach $9.5 billion in 2011, an 18% increase from 2010 revenues of $7.6 billion. The market is seen growing to $15 billion by 2014 end.
?We have bid for projects worth $2 billion. These?are under contention at the moment. This is a mix of system integration and outsourcing deals. UID is the larger pie,? Anand Shankaran, VP and business head of Wipro Infotech, said. The India?business accounts for 9-10% of its services revenues.
The UID-managed service provider contract is worth R2000-2500 crore. Crime and Criminal Tracking Network System, commercial tax and treasury, municipality and agriculture total to R4,900 crore, estimates from different companies show.
President of EMC India & Saarc Manoj Chugh noted that R4,500 crore worth of decisions by March 2012 look realistic. ?The implementation would take several years. But there is a clear intent on the?government?s part. While phase one of data centres have?been done in many states, investments in disaster recovery and business continuity have to be made,? he said.
Nasscom president Som Mittal said 26 mission-mode projects are on their way. ?Most of these are significant ones. The government has also committed that in the next three years it would connect 250,000 village with broadband. It could mean a large amount of IT spending. The government will become the largest driver of IT in India,? he noted.