India's Public Sector Forecast: 2012 To 2017

Manish Bahl

The most critical factor driving the Indian public sector over the next five years will be India’s 12th national five-year plan, which covers the period from 2012 to 2017. I have just published a report on the plan that provides a comprehensive review of India’s new government spending framework and what it means for ICT vendors looking to successfully position for success.

Forrester estimates that India’s public sector IT purchases will grow at a CAGR of 14% between 2012 and 2017, reaching $108.5 billion in 2017. In 2014, we anticipate a decrease in government spending due to parliamentary elections — but spending will pick up after the election, as maintaining GDP growth will be on the agenda of any new government. We believe that massive infrastructure investments and increasing citizen expectations will fuel public sector IT in spite of the 2014 parliamentary elections. Citizens are pressuring federal, state, and local government to become more proactive and interactive and to provide services in a more organized and user-friendly manner. A recent Forrester survey of government IT buyers in India spotlighted this heightened focus on citizen services:

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What The India 2012-2013 Budget Means For ICT Vendors

Manish Bahl

The Indian government announced its 2012-2013 budget on March 16, 2012. While the announced budget does not contain direct incentives to promote the domestic ICT industry, there will be adequate indirect opportunities for vendors to explore. The excise duty will increase from 10% to 12%; this will have a marginal impact on the sale of PCs (desktops, laptops, and tablets), but the government’s focus on improving infrastructure, creating efficient delivery mechanisms, and improving e-governance will provide substantial indirect opportunities to IT vendors.

The latest budget aims to achieve long-term and inclusive growth for the economy and is in sync with my upcoming report, “India’s 12th National Five-Year Plan (2012-2017) Provides Massive ICT Opportunities.” The report answers questions such as why and how technology will act as a key enabler for the Indian government to achieve its growth target.

The 2012-2013 budget will provide adequate ICT opportunities for vendors, such as:

  • Packaged and industry-specific applications, e-governance, mobile apps, and analytics will support the strong need for sustainable revenue sources to fund investments. A common problem that India faces today is the significant imbalance between expenditures and revenues. The budget categorically highlights the need to deliver more with existing resources; we will witness increased demand for packaged and industry-specific applications, e-governance, and mobile apps to help generate sustainable revenue to fund investments. Also, the outlay for e-governance projects will increase by 210%, from the equivalent of US$62 million to US$192 million; applications from software vendors for e-governance initiatives will present some of the most exciting opportunities in India. And the government will use various analytical tools to improve revenue sources and take corrective actions by identifying gaps.
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Do sGovernment And fGovernment Get A “Like”?

Jennifer Belissent, Ph.D.

The word is that promise of sCommerce (social commerce) and fCommerce (Facebook commerce) is more speculative than proven. What about the role of social media in government and governance? Mayors, other city leaders, and local organizations increasingly communicate and interact with their constituents via social media.

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Growing The Long Tail Of Constituent Engagement

Jennifer Belissent, Ph.D.

The promise of new citizen-centric government services enabled by social and mobile technologies and often access to government data is fast becoming reality — and has changed the way in which government organizations and their constituents engage.

Open 311 initiatives have spread across the US, and the equivalent non-emergency access initiatives have gained traction in other geographies as well. However, citizen engagement is not just about potholes and power outages; it is increasingly about the long tail of needs and interests. Public access to data and the ease of application development have facilitated the development of new applications and services. As a result, specific groups, however large or small, can develop an application to serve their purposes. Or applications can be developed for a specific project and may only be used for a couple of months, or may only be used by a niche audience.

I have had several lively conversations this week with vendors working to enable open data and new tools for constituent engagement. As an example, ESRI brings maps and the value of GIS to this explosion of citizen services. People like to visualize things, and seeing data represented on a map helps identify patterns and create a context for the data. That makes it easier to understand and easier to act on. ESRI and their partners have worked with a wide range of government organizations on creative ways to engage constituents — both citizens and businesses.

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Exploring Social Computing Possibilities With Singapore Public Sector CIOs

Michael Barnes

Several months ago I hosted a roundtable discussion with public-sector CIOs from multiple Singapore government agencies. We focused specifically on social computing — how it will alter the way public-sector agencies interact with constituents and each other. While the focus was on Singapore, the key takeaways are universal, hence my interest in sharing the findings here.

In the midst of discussing the usual suspects — concerns about security, privacy, risk management, audit, and compliance — we came to a consensus on some key points:

  • Clearly identify what services or information constituents actually want, not what the agency wants to deliver. A poorly implemented social computing app risks becoming a glorified suggestion box, or worse — “next-generation knowledge management.” In other words, a costly solution looking for a problem. Focus instead on how to actively engage users — using advanced analytics and business intelligence (BI) to deliver value. In some cases, it is as simple as asking instead of assuming.
  • Combining formal and informal data will be a major challenge.The more effective agencies are at encouraging voluntary, “opt-in” style usage, the more challenging it will be to segregate user-provided information and data from more formal, agency-provided data that must be rigorously maintained and secured. Take this information “sourcing” issue into account when documenting data management policies.
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City Level Public Sector Opportunities In Asia Pacific: A Tale Of Two Urbanization Clusters

Manish Bahl

Forrester expects two different patterns of urbanization will emerge in Asia Pacific, excluding Japan (APEJ), each with its own rate of technology adoption, maturity of implementation, and ways in which cities will use technology to support urbanization. Forrester defines two categories of urbanization: cities in countries with low-to-moderate urbanization (LMU), and those with high urbanization (HU). Each of these is prevalent in a different set of countries, has different technology requirements, and will emphasize a different set of technology underpinnings for its eGovernment efforts.

  • LMU cities will focus on automation of basic tasks. LMU cities will remain focused on basic automation and bridging the digital divide, tilting heavily toward hardware, platform software, and packaged applications.
  • HU cities will focus on more efficient ICT infrastructure. HU cities will be more focused on upgrading legacy systems and modernizing the existing infrastructure to support open government and shared services concepts.

Nevertheless, Forrester predicts that seven technologies will be common to all cities to underpin their efforts to grapple with urbanization:

  • Cloud Computing: From Hype To Reality For Cities.
  • Mobile Apps And Devices: Faster Link-Up With Citizens.
  • Virtualization: A First Step Toward Cloud.
  • Social Media And Collaboration: Opening Up Two-Way Communication.
  • Analytics: Making Informed Decisions.
  • GIS: Beyond Mapping.
  • Security Software And Systems: From Information To Physical Security.
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“Street Smart” Versus “Book Smart”

Jennifer Belissent, Ph.D.

Leonardo da Vinci BridgeSmart cities come in all shapes and sizes. There is not one definition of smart. Think about the terms “street smart” and “book smart.” When I think about the initiatives or reforms that we’re seeing across cities, I’ve started categorizing them along these lines. New initiatives like sensor-based parking and traffic optimization fall into street smart, while streamlining of back office processes and applications tend to be more book smart. And as we know, it takes all kinds.

The hype of smart cities, however, has focused on the sexy new kid on the block. Everything sensor-based and “intelligent” has gotten top billing from vendors. However, many cities need to start cracking the books first. 

Here are a few ways to start:

  • Rationalization of back office applications. Sprawling or at least siloed IT infrastructure and business apps can be upgraded and consolidated. Several CIOs I’ve spoken with have mentioned that this is a big challenge. Department heads don’t want to give up control over their domain, as they see it. Big cities find themselves with multiple enterprise resource planning (ERP) systems running across different departments in a city: Parks and Recreation licenses ERP from one vendor; Public Works subscribes to ERP services from another; Transportation manages their fleet with yet another.
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Venices (And Singapores) Of The World: Imitation And Innovation

Jennifer Belissent, Ph.D.

We often hear of city comparisons.  In my many years in Russia, I must have heard that St. Petersburg was the Venice of the North hundreds of times.  Another is Paris.  How many times have you heard “[Insert city] is the Paris of the [insert region]”?  Actually, a quick search reveals that there are at least 11 cities that are “the Paris of the East.”  Some are quite surprising:

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Russian Cities Will Get Smarter... By Law.

Jennifer Belissent, Ph.D.

Russian IT decision-makers are optimistic about their prospects for the next 12 months, according to Forrester’s Global Budgets And Priorities Tracker Survey, Q4 2010 – and, surprisingly, much more so than those in other countries -- 67% reported that their prospects are good versus only 52% in the US and 35% in the UK.  On my recent trip to Moscow to deliver the keynote speech at Cloud Russia 2012, I looked for that optimism, and the root sources of it.  There are certain obvious sources.  The price of oil is high, and Russia is an oil exporter.  The 2014 Winter Olympics are bringing significant investment to the region.  But most importantly the political dialogue is focused on innovation and technology.  That, in Russia, counts for a lot. 

Given my own research agenda, I investigated the interest in public sector technology adoption and “smart city” initiatives.  The answers were mixed.  As elsewhere vendors are pushing solutions to improve transportation, energy efficiency and municipal administration.  But many of those technology vendors did not share the optimism of the IT decision-makers for their own prospects in Russia. They did not see Russian cities as highly motivated, or incented, to get smart. 

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Running Pamplona: ICT Drives City Initiatives (Not The Bulls)

Jennifer Belissent, Ph.D.

Twenty three years ago I arrived with a backpack and my best friend.  Last week I went back.  The city was as welcoming this time as it was the last, although the circumstances of my visit – and certainly my accommodations – were vastly different. 

Pamplona is a city of about 200,000 inhabitants in Navarra, in the North of Spain.  It is best known for the running of the bulls or, as it is known locally, the Festival of San Fermin, which many of us were first introduced to in Ernest Hemingway's The Sun Also Rises.

The bulls were not what brought me to the region this time (although they were the principal reason for my first visit).  Last week I participated in e-NATECH, a tech industry forum organized by ATANA, an association of local ICT companies in Navarra.  From what I saw in both the audience and across the city, Pamplona is clearly a front-runner in terms of ICT (and bulls as I recall from my first visit).

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