The $10 billion dollar Indian e-governance market ?
SOURCE: EconomicTimes
DATE: Feb 24th, 2010
The Indian Government has committed about USD 10-billion to this program, of which composite of some investment is coming from private partners and also from the State Governments, Ministry of Communication & Information Technology, Additional Secretary, S R Rao, told reporters on the sidelines of CII organised conference here today.
This year, the Government is going to offer tenders of over Rs 5,000-crore ( $1.1 billion ) for three major projects in the National Urban Renewal Mission (NURM), for integrated development of urban infrastructure services, Crime and Criminal Tracking System (a citizen-centric project) and six pilot projects with Ministry of Agriculture.
The spend appears to be over a period of time given that the public-private partnership model for spending in eGovernance is still being worked out and like the infrastructure investments need in India, requires a long policy and execution process.
The spending estimates does appear to be high and hopefully the spending is used to actually improve efficiency across Indian government sector vs building some more memorial parks!
A number of Indian vendors and Multi Nationals with presence in India are positioning themselves to service domestic markets in India and specially large government projects. Corporate spending for large initiatives in India is still limited to a handful of players for IT services e.g. Telecom service providers. Government projects remain the largest market for IT service providers.
Compare this with the actual US federal government spending on IT for 2009 ($38.6 billion). This does not include across state government and cities and counties. Not all the IT spending is directly associated with e-governance but gives a size of scale.
Here is some of that spending across some of the departments:
Department of
Transportation: $2.4 billion
Treasury: $2.9 billion
Commerce: $2.1 billion
Energy: $1.6 billion
Agriculture: $1.4 billion
NASA: $1.3 billion
Homeland Security: $4.9 billion
Health and Human Service: $2.3 billion
Treasury Services: $2.3 billion
Justice: $2.0 billion
Defense: $9.6 billion
Veteran Affairs: $2.6 billion
Education: $614.6 million
Mohit Sharma is the CEO of Corrystone Global Partners. Corrystone is a specialized globalization firm providing advisory, education and staffing services to firms in US and India. We work with firms in the US which are exploring low cost options for IT, Business Process work and looking at ways to further optimize cost and manage operational risk. For firms based in India we help with marketing presence , M&A & client management services in the US. Contact us at info@corrystone.com to learn more about how we could help you.
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