Indian software product business to touch USD 9.5 to 12 billion by FY2015
August 11, 2008: NASSCOM has released the findings of the 'NASSCOM Software Product Study: Outlook for Indian Software Product Businesses' Report on the Product Business in India aims to define a roadmap on the market opportunities and key recommendations to help India emerge as a `product’ country.
As per the report, the next decade will play a crucial role in bringing about disruptive growth for the Indian Software Product segment, and the annual revenue aggregate of this segment is forecast to grow from USD 1.4 billion in FY2008 to USD 9.5 to 12 billion by FY20152. This is evident from the recent trends in market activity aided by a maturing ecosystem, which indicate that the Indian software product businesses are now approaching an inflection point in their evolution, and the time is right to bring about disruption. Enterprise application software will present the largest opportunities with BI, ERM with storage and security being the key priorities.
The Indian software product story so far has been an export driven story with 68 per cent of the revenues coming from just exports of these products. However, going forward, home-grown software product businesses will surely witness an increased acceptance in the domestic market, thereby increasing the revenue share from domestic sales. By 2015, Indian software product business revenues would be more evenly balanced between domestic and export based sales and share of revenues from the domestic market would increase from 32 per cent in FY2008 to an average of 41 per cent by FY2015 to reach US$ 4 to 5 billion.
Key parameters such as proximity of Indian software product businesses to the local market requirements; excellent understanding on localization requirements, and ease of adopting customized and targeted sales approach would fuel this growth.
India’s R&D offshoring experience, software product talent landscape, the high innovation – low cost advantage, domestic market potential, changing VC environment and support ecosystem all contribute towards positioning India as a strong contender in this space and position it to capture a slice of the global software product pie.
Key highlights of the report
• Recent trends in market activity aided by a maturing ecosystem indicate that Indian software product businesses are now approaching an inflection point in their evolution. The next decade will be a period of disruptive growth for this segment, with the annual revenue aggregate of Indian software product businesses forecast to grow from USD 1.4 billion in FY2008 to USD 9.5 to 12 billion by FY2015.3
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