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Flipkart, Amazon go against each other to manage Government e-Marketplace

The Indian government is all set to make the use of GeM mandatory for all its departments, as per reports surfaced in February 2017.

After  The Central Government announced to go out to establish its e-marketplace GeM, the national public procurement portal, bids are coming in fast to manage the portal. Now,  India’s biggest e-commerce companies Flipkart and Amazon are again against each other for the opportunity to handle purchases for the country’s largest buyer — the government.

The Government e-Marketplace (GeM) portal will manage procurement for ministries and departments for items such as laptops, air conditioners, furniture and items of daily use like stationery at both the state and central level. Services such as taxis and florists also come under the purview of GeM, which was launched in August last year with the main aim of making the process much more efficient.

Flipkart may tie up with Microsoft for technology since the RFP allows IT and e-commerce companies to form a consortium and bid.

Software and services giants Tata Consultancy Services, Accenture, and Wipro are also said to be in the race for the contract spanning five years that’s extendable by two years. Amazon, sources said, is keen to provide its cloud services and has got the approval of its US headquarters to participate.

Over 21,000 products and 17 services such as security, transportation, pest control and laundry are already available on GeM, currently run in-house. The total value of purchase made on GeM amounted to Rs 454 crore between August 2016 and April 30 this year.

Earlier this year, the government amended the General Financial Rules (GFR) to make it mandatory for central and state agencies to route all their office purchases through the GeM portal. Since its scope has broadened exponentially, the government is looking at roping in private companies to build and manage it- according to ET

The enhanced scope of GeM has also made the opportunity more exciting for companies.

Also read: Flirt with Your Product ideas, Don’t Fall in Love

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