2014 Indian Election Results Bode Well for Its IT Industry

G00264741

Analyst(s):

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Summary

The winning party’s extensive use of technology in the election and future prime minister Modi’s statements about IT's importance in driving transparency and accountability in government are good signs for India’s IT industry.

News Analysis

Event

On 16 May 2014, the Bharatiya Janata political party (BJP), led by Narendra Modi, won a landslide victory in the lower house of the Indian parliament. It will form the government by 1 June.

Analysis

The absolute majority won by the BJP suggests it will form a more stable government with the ability to fast-track economic policy reforms, which will encourage further growth within India's IT sector. The BJP party's extensive use of technology during the elections is also a strong indicator of its belief in and future adoption and execution of technology initiatives as well as its support for the IT industry.

To fulfill its promise of "pro-people and proactive" governance and development, and the expectations its campaign has created regarding the delivery of a citizen-centric, transparent and inclusive form of governance, the new government will need to showcase transparency, accountability and auditability. Gartner expects domestic IT service organizations handling integration, mobility and IT-security-related services will benefit from an uptick in IT spending on e-governance and mobile-governance (m-governance) initiatives. This will help propel the new government's agenda through transparent and progressive governance.

Government efforts will require:

  • Increased IT spending on e-governance initiatives, citizen transformation services, m-governance and broadband penetration in rural India.

  • Leveraging the national cloud initiative, "Meghraj," to accelerate deployment of e-governance initiatives.

  • Creation of more shared services organizations within the government bodies.

  • Tax incentives aimed at promoting the IT, business process outsourcing and small and midsize business sectors, such as tax-friendly special economic zones in Tier 2 and 3 cities.

  • Department heads to achieve greater awareness of their responsibility for ensuring the execution of IT initiatives that affect the mission, performance and business processes of their organizations.

IT initiatives will encompass modernization and innovation of back-end systems within IT infrastructure to consolidate diverse information scattered across multiple government organizations, departments and agencies. This will include delivering data and transactions to the public over the Internet. The front-end system, such as a citizen portal through which various services are rendered to the public, will also see widespread innovation and spending. Another key area of IT spending relates to technology-enabled monitoring, tracking and compliance-related activities. For example:

  • Compliance with guidelines laid down by the Central Vigilance Committee around bid security for e-procurement.

  • Digitization of land records for achieving greater transparency.

  • File life cycle management and policy automation for transparency in government file movements.

  • GIS-enabled IT systems for disaster management, budget tracking, asset management and tracking the effectiveness of public distribution systems.

Recommendations

CIOs and policymakers in government:

  • Revisit existing IT architectures and assess the maturity of business processes to cope with the pace of new e-governance and m-governance initiatives.

  • Examine the benefits of developing a shared services model to serve common IT needs of various government agencies.

  • Resist large-scale cloud deployment initiatives until there is sufficient clarity on broadband policies that ensure availability of 3G networks.

  • Engage with your system integrators in creating smart city solutions that have a sustainable basis for all stakeholders.

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