NASSCOM has 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 Bengaluru yesterday. In addition to the Conclave, NASSCOM also organised an exclusive first time platform for product companies to display and demonstrate their products to the delegates of the conference, through the ‘Product Expo’.
Speaking about the report, Som Mittal, president, NASSCOM, said, “The product segment in India has the potential to grow 10 times its current size and touch anything between $9.5 and $12 billion, over the next decade. We have a lot of work to do and have identified all the stakeholders who can make this happen.”
Dr Ganesh Natarajan, chairman, NASSCOM and deputy chairman and MD, Zensar, said, "With new models like SoA and SaaS now maturing, the opportunity exists for Indian product development to take the global spotlight. This will need focus on breakthrough innovation and global marketing with access to multi-level funding. An ecosystem for creativity must evolve in the leader and challenger locations to enable this, and NASSCOM is committed to making this happen."
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.
Talking about the findings of the report, Pari Natarajan, CEO, Zinnov Management Consulting Pvt Ltd, said, "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."
"We very strongly feel that 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 $4 to $5 billion. Key parameters such as proximity of Indian software product businesses to the local market requirements; excellent understanding on localisation requirements, and ease of adopting customised and targeted sales approach would fuel this growth," Natarajan added.
Industry CEOs, CIO’s of user industries, product startups, technology seers, venture capitalists, angel investors and marketing experts will congregate at Bengaluru for this two-day action packed agenda of debate, sharing of new initiatives and showcase of Indian products in the market.
According to the report, targeted actions by key stakeholders across four key themes will help accelerate the next phase of growth, and enable the annual revenue aggregate of this segment to reach $9.5-12 billion by 2015. These are influencing market development, enhancing talent pool, strengthening capital ecosystem and augmenting the support ecosystem. |
