Tata Consultancy Services (TCS)
The budget’s proposals on digitization and technology revamp could result in a multi-billion-dollar opportunity for India’s big IT services providers such as Tata Consultancy Services (TCS), Infosys, Wipro and Tech Mahindra, according to Gartner India.
The estimates were shared exclusively with ET.
The government could spend more than $10 billion on technology solutions across IT, data centres, platforms, software and telecom, the technology forecaster has said.
Around 50% of this investment will be directed towards IT services and software solutions, it said.
TCS is expected to lead the charge in digitisation and technology revamp projects, while Tech Mahindra may do so in telecom and 5G opportunities.
In newer segments like logistics, agriculture and health-tech, the government tenders may go to smaller domain-specific companies and startups, according to research by UnearthInsight, which corroborates Gartner's estimates.
Government initiatives like setting up 75 digital banks in 75 districts or using smart meters to ensure equitable access to utilities inch toward digital inclusion in service delivery, said Apeksha Kaushik, principal analyst, Gartner Research.
“Digital government offers opportunities to optimize existing citizen services and transform how the value of government is measured and delivered,” she said.
As of 2021, government spending on technology stood at $9.6 billion. This is expected to grow 11.6% in 2022 to $10.7 billion, Gartner said.
Around $5.5 billion of this will be directed towards software and IT services.
“As mobile became the primary channel of service delivery, industries stepped up digital to continue operations. A rapidly growing technology industry and initiatives like Make in India and production-linked incentive schemes are making India lucrative (technology spenders) among the emerging markets,” Kaushik said.
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