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e-Gov In Full Swing
 
With the central and state government is busy investing crores in setting up IT infrastructure for better governance, the ICT space is looking forward to this strong market vertical as a lucrative trade
 
Avishek Rakshit
 
Friday, February 13, 2009

 

Since India witnessed the last technology boom, electronics have taken on an indispensable place in our daily life. Although most of the IT business is dominated by the private sector, the Indian government has also started taking the initiative of using IT under the Public Private Partnership (PPP) model under its e-governance schemes to reach out to its citizens.

e-Governance has come a long way since the late 80s and has now become an integral part of governance, be it at the center or the state level. In the Union Budget 2008-09, the government increased the allocation for the IT department to Rs 1,680 crore from Rs 1,500 crore in the last fiscal. Its target is to launch one lakh Citizen Service Centers (CSCs) and set up State Wide Area Network (SWAN) across the country.

It is in this realm that the IT industry, powered by huge government investments, has started to emerge dominant even in this time of slowdown. Also recently, schemes for State Data Centers (STDs) have been announced. Out of the Rs 1,680 crore allocation in the budget, already Rs 450 crore has been allotted for SWANs, Rs 275 crore have been mobilized for STDs and another Rs 75 crore has been given to the CSCs across the country.

Vendors in India have a range of solutions for the e-governance projects. HCL offers e-procurement, e-gover­nance, e-office and e-district, smart card solutions, document management system, data center solutions, and SWAN projects across India. The company won the bid for the system integration contract, Punjab State Wide Area Network (PAWAN), from the Punjab Government and orders for automation of a municipal corporation.

As system integration continues to dominate the space in e-governance, vendors are now bidding hard on the rollout of e-procurement framework for the Indian Railways, supply of automatic ticket vending machines and other specialized solutions.

The CSC front
AMD has been working along with the government for their infrastructure development in e-governance since the inception of the National e-Governance Plan (NeGP) including panchayat raj and rural development projects in West Bengal; Sarva Shiksha Abhiyan Tamil Nadu, Gujarat and Rajasthan; Community Service Center (CSC) project in Orissa; SWAN project for Chhattisgarh and Land Records project in Assam.

It is however, on the CSC front that a lead has been taken by the government and in this initiative, alredy request for proposals (RFPs) from 25 states have been issued with 23 states making an incredible run in setting up respective agencies covering 1,02,827 CSCs (source: IDC). Also, till October 2008, 20,558 CSCs have started functioning (source: IDC) and the government is hopeful of completing the CSC project by the end of Q2, FY 2009.

The government's stimulus package ensures that capacity building projects under the NeGP, such as the STDs, CSCs and the SWANs are implemented as per schedule. In addition, the other state and central mission mode projects not only ensure the heralding of a new revolution in G2C and G2B services, however, also sustain the industry in these troubled times.

Expert Speak: e-Governance–The next level
Today, having executed an array of e-governance projects in multiple domains across various sectors, there is far more acceptability in the government corridors for undertaking an ambitious project which targets all components simultaneously. This paradigm of e-governance focuses on better service delivery through front-end service delivery mechanisms, improved operational efficiency through streamlining back-end processes and systems, reduced processing time through integration of various back-end systems and applications, and increased citizen satisfaction by integrating cross-departmental systems and applications. The key mandate in undertaking such an exercise is to ensure that the front-end systems get bigger and better, whereas the back-end systems get smaller and smarter.

This approach indicates a change in the mindset of the government entities, where they share objectives across organizational boundaries, instead of working solely within an organization. This is an important step forward as it involves design and delivery of a wide range of policies, programs and services that spill over the traditional departmental boundaries. The earlier approach towards implementing e-governance initiatives focused on provision of services, whereas the new 'integrated-governance' approach focuses on increasing the value of government services for the citizen. This value enhancement is possible only when a consolidation happens of the way back-end systems and processes in the organization work to bring about the front end service delivery. The use of information technology helps governments in maximizing that value, making services more efficient, more useful, more accessible and more responsive.

Increasing investments in IT by government entities are fast becoming the need of the day, which is a mandatory requirement to ensure extension of service delivery into new delivery channels, automating and integrating the back-end systems and setting up of connectivity infrastructure to enable widespread reach of e-governance. To realize full value of these investments, governments will have to bring greater coherence in the way different departments and agencies deliver citizen services. Departmental silo-based Information and Communication Technologies (ICT) infrastructure will have to give way to coordinated service delivery architecture to cost-effectively meet the citizen's continually rising expectations of government service.

Failure of many e-governance projects in delivering the intended benefits is directly linked with the level of complexity of the projects. Also there is ample evidence to prove that the success or failure of an e-governance initiative is as much a people issue as it is a technological issue. Hence it is imperative for the governments to ensure that they lay strong emphasis on conceptualizing a project keeping all its constituents and inter-dependencies in mind, and follow a holistic implementation strategy which strives to deliver the right benefits to all stakeholders. This strategy should focus on exploring what's possible, and then drive the change fighting with the existing set of challenges. Technology, at the end of the day, should function as just an enabler and a tool to drive this change. The real benefit of e-governance is not measured by the level of use of technology to simplify the operations, but by the application of technology in bringing transformation and innovation in the government functioning, to enable 'better governance'.

Navin Agrawal
The author is Executive Director-KPMG India

Still, the channel community in some parts of the country seems to be dissatisfied with the way ahead. The case is grave for Haryana (ranked 4th in the DQ-IDC e-governance survey 2008), where partners across the state are in dearth of government tenders. As the state government indulges in direct OEM pur­chases after HARTORE, the state agency floats the tenders; the channel community has been left dry with HCL, Dell and HP topping the list of e-governance tenders.

Andhra Pradesh seems to have made considerable progress over the years. Ranked fifth in the DQ-IDC e-gover­nance survey 2008, this state is one of the first IT hubs of India to have e-seva center, where online tax payments, lodging complains and feedback could be rolled out. With CGG and NISG rolling out most of the tenders, Hyderabad has not only emerged as a topper in terms of IT services and exports, it has also grown considerably in the sales space too.

Speaking on the situation in Andhra Pradesh, Hyderabad-based Durganath Venkatha, VP, Locuz Enterprise Solutions said, “Rs 80 crore data center project is going on and soon, the
Swan project estimated around Rs 150 crore will be rollout. These are some instances where additional support is required by the government. The govern­ment agencies usually look towards companies to provide expertise in areas that are new to them. For example, we were recently requested by the Government of Karnataka to assist them in sizing up their data center. Another instance was with the West Bengal government, where we imparted knowledge on the set up for their panchayat and rural development project.”

Upcountry e-gov
Now, the upcountry markets are not distant from the mainstream market and the IT channel space has started to savor these markets as their primary targets.

In Haryana, where the channels have not been able to penetrate the e-gov projects, they have already started to concentrate on the upcountry markets tapping Ambala in particular. Also, in Rajasthan, with the outstanding performance of the e-gov projects, Jodhpur and Udaipur markets have begun to emerge strong in the state.

Avishek Rakshit
avishekr@cybermedia.co.in

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