Next decade crucial for software segment: NASSCOM

BANGALORE, INDIA: NASSCOM, the premier trade body and ‘voice’ of the Indian IT-BPO industry, released the findings of the 'NASSCOM Software Product Study: Outlook for Indian Software Product Businesses' at its second annual Product Conclave, that kicked off in Bangalore today.

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 $1.4 billion in FY2008 to $9.5 to 12 billion by FY2015.

It also organized an exclusive first time platform for product companies to display and demonstrate their products to the delegates of the conference, through the ‘Product Expo’, according to a press release.

The report indicates that the Indian software product business is now approaching the inflectional point in their evolution and this would be the right time to bring about disruption.

It said that over the past two decades, India has emerged as a global hub for product research and development (R&D) activity, especially in the technology industry.

The report also focuses on the accelerating growth in the segment over the past three years and the broadening industry base.

Of the existing 371 software product start-ups since 2001, over two-thirds have been formed in the past three years. Of this, 100 companies have started their operations in 2007 alone.

As a result, while the top 10 companies still dominate, accounting for 84 per cent of the segment revenues, there are over 200 mid-sized companies and start-ups that have started generating revenues and are contributing to its growth.

The 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.
According to Som Mittal, president, NASSCOM, “The product segment in India has the potential to grow ten times its current size and touch anything between $ 9.5 to 12 billion, over the next decade.”

Ganesh Natarajan Chairman NASSCOM and deputy chairman and managing director, Zensar said, "The Product industry in India is coming of age with world class IP now being created from India in key domains and end-to-end design and development services provided to global ISVs by captive and third party units in India.”

The four key themes that would accelerate the next phase of growth are influencing market development, enhancing talent pool, strengthening capital ecosystem and augmenting the support ecosystem, the reports observes.