IT tenders: a guide to government software and IT tenders in India

IT tenders are some of the most common government tenders in India: almost every office buys computers, and most departments now run software, websites and data systems they need built and supported. Government IT work also comes with its own routes, from GeM and empanelment panels to security audits and quality-based selection. This guide explains who buys, where software tenders and other government IT tenders are published, how empanelment and Make in India work for IT firms, and what eligibility to expect.

What counts as an IT tender

Buyers and portals group IT work in three broad kinds:

Larger projects mix all three. A system integrator (SI) contract, for example, may cover hardware, software development, installation and five years of support under one tender.

Who buys: the main buyers of government IT

• Central ministries and departments. Every ministry buys hardware and software for its own offices, and many run large e-governance projects for citizens.
• NIC and NICSI. The National Informatics Centre (NIC), under the Ministry of Electronics and Information Technology (MeitY), builds and runs many government IT systems. National Informatics Centre Services Inc. (NICSI), a company under NIC, buys IT products and services for government departments, largely from vendors it has empanelled.
• State IT departments and agencies. Most states have an IT department and an electronics or IT agency that buys for other departments and keeps vendor panels, such as Keltron in Kerala, KEONICS in Karnataka, ELCOT in Tamil Nadu, BELTRON in Bihar, OCAC in Odisha and RajCOMP Info Services in Rajasthan.
• PSUs and public sector banks. Central and state PSUs and public sector banks run some of the biggest IT tenders, for core systems, data centres, networks and security.
• Smart cities, universities and local bodies. These buy CCTV, Wi-Fi, command centres, campus networks and software, usually through their state's portal or GeM.

Where government IT tenders are published

• GeM for products and services listed there (most hardware, many software licences and standard IT services).
• CPPP and eprocure.gov.in for central ministries' tenders outside GeM, such as large software projects.
• State e-procurement portals for state departments and corporations.
• PSU portals and the central PSU portal for PSU tenders.

GovtTenderHub brings these together: see IT and electronics tenders, software tenders and computer tenders, filtered by state and closing date.

IT tenders on GeM

Rule 149 of the General Financial Rules makes central ministries buy goods and services available on GeM through GeM. As our GeM portal guide explains:

• Up to ₹50,000: direct purchase from any seller meeting the specification.
• Above ₹50,000, up to ₹10 lakh: L1 purchase, the lowest price among sellers of at least three different manufacturers.
• Above ₹10 lakh: a compulsory bid or reverse auction.

For IT sellers this means:

• Computers and peripherals are catalogue products. As a reseller, you usually need the OEM's authorisation to pair with its catalogue in many categories. OEMs go through GeM's vendor assessment.
• Software development, support and IT manpower are bought as services, with a service level agreement (SLA) setting the standards and penalties.
• Bigger projects are often run as GeM BOQ bids (a bill of quantities for a turnkey job) or as custom bids.
• Read the bid document for experience, turnover, OEM authorisation, Make in India and MSE terms. Bid and reverse auction contracts can ask for performance security of 3% to 5%.

Empanelment routes for IT firms

Much government IT work never goes to an open tender. Buyers keep panels of checked firms and send work, or limited tenders, only to them. Our vendor empanelment guide explains the rules. Under GFR Rule 150, departments can register suppliers of goods and services not on GeM for 1 to 3 years, after due publicity, and registered suppliers are ordinarily exempt from EMD for those items.

Panels that matter in IT:

• NICSI empanels vendors in IT product and service categories, and departments that buy through NICSI draw on these panels.
• State IT agencies run their own panels for hardware, software development, IT manpower and facility management.
• NeGD consultants. The National e-Governance Division has empanelled consulting firms through a "Request for Empanelment", valid for three years and extendable by two.
• Security auditors. CERT-In, India's computer emergency response team, empanels information security auditing organisations. Government buyers usually require their audits to be done by one of these.
• Cloud services. MeitY empanels cloud service offerings, and government departments look for empanelled providers when they move systems to the cloud.

Watch for "Request for Empanelment" and "EOI for empanelment" notices on CPPP and state portals, and apply for every panel that matches your work. Empanelment doesn't guarantee orders, but without it you won't hear about much of the work.

Make in India for software and electronics

The Public Procurement (Preference to Make in India) Order 2017, revised on 19 July 2024, applies to central purchases of goods, services and works of ₹5 lakh and above, IT included. The Make in India guide has the details. For IT firms:

• Classes. Class-I local supplier: 50% or more local content. Class-II: 20% to below 50%. Only these two can bid in a domestic tender.
• Purchase preference goes to Class-I suppliers within 20% of the lowest bid. For services evaluated on price alone, the lowest Class-I bidder within the margin can match L1 and take the whole contract.
• MeitY's notifications. A nodal ministry can set a higher minimum local content for its items, and MeitY has issued its own notifications under the order, including one for cyber security products. The tender must state the minimum local content that applies.
• PLI makers. A manufacturer that has received Production Linked Incentive (PLI) benefits for an item is treated as Class-II for it unless it meets the Class-I minimum.
• SI contracts. Inside EPC, system integrator and turnkey contracts, items notified as having enough local capacity must come from Class-I suppliers.
• Not in QCBS. The preference doesn't apply where non-price criteria count.

You self-certify your local content. Above ₹10 crore you also need an auditor's or accountant's certificate, and a false declaration can mean debarment for up to two years.

Security audits and data rules

Software that government runs is checked for security before it goes live, and tenders put this on the vendor:

• Security audit before go-live. Websites and applications are usually tested by a CERT-In empanelled auditor. Tenders often make the developer fix every finding and get a clean audit certificate before acceptance or final payment.
• Accessibility and design rules. Government websites follow the Guidelines for Indian Government Websites (GIGW), and website tenders often ask for compliance.
• Data location and cloud. Many tenders require data to stay in India and hosting with a government data centre or an empanelled cloud provider.
• Testing and certification. Some products and systems must be tested or certified by STQC, MeitY's testing and quality certification directorate, or another lab named in the tender.

Budget time and cost for these. A missed audit can hold up your acceptance certificate and your payment.

QCBS in IT service tenders

Not every IT tender goes to the lowest price. In QCBS (quality and cost based selection), the buyer scores your technical proposal and your price, weights them and adds them up; the highest combined score wins. Our QCBS guide has the formula and a worked example.

For non-consultancy services, QCBS is allowed at any value: above ₹10 crore it follows the Quality Oriented Procurement route, and up to ₹10 crore a simpler route (DoE OM of 1 November 2023). You must first reach a minimum technical score, normally 70 to 80 out of 100. Key staff CVs and your methodology carry most of the marks in consultancy, so put your effort there.

Typical eligibility in government IT tenders

Most tenders also ask for a declaration that you aren't blacklisted, land border compliance under GFR Rule 144(xi), and a support office or engineers in the area. A dealer can often meet the experience test on its manufacturer's record if the manufacturer gives a tender-specific authorisation.

Startups and MSEs. Central buyers must normally relax prior turnover and experience for DPIIT-recognised startups, and may do so for MSEs. On GeM, the relaxation applies only if the bid says "Yes". See tender eligibility criteria.

Common questions

How do I get government IT tenders?

Register on GeM, eprocure.gov.in and your state's portal with a Class 3 DSC, list your products or services on GeM, and apply to the panels that buy what you do, such as NICSI and your state IT agency. Then track new tenders daily and bid where you meet the eligibility.

Can a new IT company bid in government tenders?

Yes. Many GeM bids and central tenders relax turnover and experience for DPIIT-recognised startups and MSEs. Start with smaller bids and GeM orders to build the completion certificates that larger tenders ask for.

Is GeM compulsory for IT products?

For central ministries and departments, yes, for anything available on GeM. Computers, printers and many software licences and IT services are on GeM. State buyers and PSUs follow their own rules but often use GeM too.

Does Make in India apply to software?

Yes. The order covers goods and services, so software and IT services bought by central buyers for ₹5 lakh or more fall under it. The tender states the minimum local content and whether purchase preference applies.

What is empanelment in IT tenders?

It is a list of checked firms that a buyer, such as NICSI or a state IT agency, keeps for a type of IT work. Work is then given only to firms on the panel, often through limited tenders.