At a time when IT spending by private sector companies has taken a backseat due to the slowdown, Public sector companies have stepped up their expenditure and it is expected to touch $5.1 billion by 2011.
A recent report by Springboard Research said the IT spending by India's public sector has reached an estimated $3.1 billion in 2008 and is expected to grow to $5.1 billion by 2011.
The increased spending is good news for domestic IT firms such as TCS, Infosys, Wipro and Mahindra Satyam who have been looking at newer geographies for growth following reduced demand from the US.
The study further says more than two-thirds of the total spending would be controlled by the centre, with the states and local governments spending 22 per cent and 11 per cent, respectively.
Projects like the national ID cards, defence tactical communication system and providing PC broadband access to schools across the country are forecast to act as further drivers to the growth in the country's public sector IT spendings.
