NISG is a not-for-profit company setup in a Public-Private-Partnership (PPP) in 2002 under the recommendations of The National Taskforce on Information Technology and Software Development, with 51% equity contributed by the private sector and 49% by the public sector. NASSCOM, Government of India and Government of Andhra Pradesh are the main promoters with ILFS, Government of Chhattisgarh, Government of Meghalaya and Vizag Municipal Corporation being the other stakeholders.

The main idea behind setting up of NISG was the revolution in Information and Communication Technologies which necessitates the government to keep up with the changing environment and revolutionized  the way the Government interacts with citizens and business entities. In order to transform Government departments and agencies from department-centric mode of working to a citizen-centric way, the National e-Governance Programme (NeGP) was conceived with the vision of "Making all Government services accessible to the common man in his locality, through common service delivery outlets and ensure efficiency, transparency & reliability of such services at affordable costs to realize the basic needs of the common man." Therefore, NISG was envisaged as an advisory and consulting body which offers the orientation and efficiency of the private sector combined with the accountability of the public sector which would aid and guide the public sector in planning and implementing e-solutions to improve service delivery mechanisms and efficiency of the public departments.

Over the years, NISG has grown in stature and acquired the status of a reliable advisory and consulting body to the Central Government, State Governments and PSUs in their endeavor to adopt and implement ICT solutions to improve service delivery and efficiency of the departments.