- PUNE: The share of government business at advanced analytics firm SAS has increased sharply in the past few years.
It has been growing in double digits, said Noshin Kagalwala, managing director, SAS India, which has been in the country for the last two decades.
“Currently, this comprises 30% of our business, up from about 10% five years ago and is among the fastest growing sectors for us,” he said.
SAS is not the only one.
Most technology multinationals in India have seen more interest from central and state governments, both in products and services. Technology demand from government has grown sharply, as it works to deliver services digitally and pushes Smart City initiatives.
The IT services and software sectors are expected to grow in double digits by 2020, according to DD Mishra, senior director analyst, Gartner.
“Government IT spending is set to grow in coming years and will reach $7.7 billion by 2020. Approximate total government IT spend in India is expected to grow 7-8% for the next three years,” he said. With digital adoption, healthcare, education, e-governance and agricultural platforms are all attracting spending around IT services and software, he said.
Citizens are expecting interactions with governments to be as smooth as those with online banking or social media. They want services to be personalized and delivered at their fingertips, said Prativa Mohapatra, vice-president (sales), IBM India / South Asia.
The digitisation effort requires a deep degree of trust from citizens.
“Government agencies, hence, face the challenge of increasing quality and efficiency of public services cost-effectively. As a result, there is increasing amount of interest and focus in areas like AI, blockchain, security and multi-cloud and hybrid cloud,” she said.
Dell Technologies is engaging with the government in various capacities at the state and central level. Ajay Kaul, head, government business, Dell Technologies, said: “This is a significant portion of our revenues and we are looking at it going higher. We’re on a very fast trajectory, whether quarter-on-quarter or year-onyear.”
The government’s target of a $5 trillion economy rests on enabling digital infrastructure, which will need massive modernisation and transformation, Mishra of Gartner said.
This will help increase the share of business MNCs get from various government entities.
While Indian IT firms too are benefiting from the increased spend by governments on technology, a large chunk of the business is believed to going to multinationals.
“Worldwide, large global MNCs have much larger share of government spends which varies 10-30% compared to Indian counterparts whose share of government revenue varies 1-5%,” Mishra said.