The software products industry in India, which has had too few telling success stories up until now, is slowly maturing with the requisite ecosystem falling into place. According to Nasscom, Indian software products are rapidly maturing with many more million dollar product firms. The software product segment in India which recorded revenues of $5.4 billion for FY14 reached $6.1 billion in FY15, registering a growth rate of 12%.
Today, there is a growing number of pure software product firms which are focused on various areas such as technology, BFSI, healthcare and education. iSPIRT, a thinktank for the Indian software products industry says, “We believe that the new generation of Indian software products will have a big impact on improving government, labour, and social productivity. It will make governance more data-driven, small businesses exponentially more productive, and communities more connected.”
The key promising areas for Indian software products firms are: devices at the edge, fusion of Internet of Things (IoT), SaaS, mobile solutions, data analytics etc. Karthik Reddy, managing partners, Blume Ventures feels that the business to business (B2B) segment which is essentially creating software solutions or products has been largely untapped though there has been noticeable changes.
According to him, the trigger for that change will be confidence. “The day we see the first signs of that there will be hundreds of great technology entrepreneurs who focus on global products enterprises. The Indian engineering talent will build some great stuff that will go global,” he remarked. The growth of the software product companies in India will depend a lot on the growth of the eco-system which includes entrepreneurs, investors, right type of advisors, addres able market, academic institutions, exit opportunities etc.
According to iSPIRT there are significant challenges in creating the right ecosystem. There are no clear guidelines for insightful modeling of software ecosystems. Second, conducting an ongoing health analysis of an ecosystem is even more of a daunting task so as to decide the right indicators and lastly the issue of governance. Today, in the midst of big technology shifts with all businesses witnessing dramatic changes, it is going to be no different for the Indian IT industry as it moves from providing software services to creation of products.
There have been a few examples of software product success in India with companies like i-flex now known as Oracle Financial Services which created a strong independent brand for themselves. Tally Solutions is another name that comes to mind. But yet we are still a fair distance away from creating the next big software product firm.
The advent of cloud technologies, penetration of smartphones, software as a service (SaaS) model are the few ingredients which has helped in creating a platform for the growth of software product firms in India.
Today, one does not necessarily have to be in a technology hub like Silicon Valley of US to create a global software product firm which can be done out of India.
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