Information technology (IT) systems are now ubiquitous in government. The Government of India has tripled its spending in real terms on IT procurement over the last fifteen years. IT procurement is tricky because these systems need continuous maintenance and refinement, and traditional systems of procurement are unsuitable for solving the incomplete contract problem that follows IT procurement. We build on three case studies from India -- Aadhaar, Passport Seva, and MCA-21 -- to make the case for why we need new thinking on IT procurement. Our solutions hinge around the fact that the government needs to build robust internal technical expertise even when system development has been outsourced. We make the case for flexible contracting, early concept verification, and strategic investments in state HR capabilities to successfully navigate the marketplace for digital services.
Citation:
Better public procurement for IT in India, Ashok Pal Singh, Karthik Suresh, Susan Thomas, XKDR Forum Working Paper 51, October 2026.
