The Indian software products landscape is evolving rapidly – comprises of over 3,400 product firms and combined revenues of approx. USD 5.9 billion in FY2014. Both domestic revenue and exports of Indian product firms has been growing at ~10 per cent CAGR over the last five years. Unlike the other segments of the IT-BPM industry, while exports stand at USD 1.7 billion in FY2014, the domestic revenues is nearly 2.5X of exports, estimated at USD 4.2 billion
The industry is aiming to achieve USD 10 billion in revenues by 2020. Driven by demand from customers – enterprises, SMBs, government and retail consumers – and the emergence of disruptive technologies – this industry is on the threshold of receiving the thrust much needed to achieve this target.
The products landscape, it is quite established and dates back to the 1980s. Although it has grown significantly over the last 30+ years, the last 24 months have been particularly interesting with lot of momentum and excitement in the ecosystem. The ever increasing number of success stories from India, the vast presence of the global VCs, increased corporate interest, the availability of quality incubators/ accelerators, rising base of business & technology mentors are all converging together to further accelerate the growth momentum of the industry.
Amidst this rapid acceleration, a number of Indian product companies are realising the potential of expanding on to a global markets canvas. According to NASSCOM estimates, 43% of all Indian product start-ups are focusing on global markets, driven by numerous factors in terms of market opportunity, access to capital, favourable policies etc. Moreover, many companies are starting to relocate to global locations such as US, Singapore etc. to address the global market potential.
However, it is seen that only few of the companies have been able to succeed in this journey so far primarily because of marked differences between India and global markets. Henceforth, it becomes a key prerogative to understand the best practices/ success factors, embarking the successful journey to these global markets.
The study Desi Products