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The Journey of Software Products in India and Key Driving Factors
The Journey of Software Products in India and Key Driving Factors

April 29, 2022

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The Indian software product market has been in limelight for the past few years. The exceptional growth of Software as a Service (SaaS), growing digitization, cloud movement and multiple other factors played a key role in this growth. This software product journey has lot to say so let’s have a look at it.

Early Stage - The shift towards Software Product business:

  • New companies see high potential in the software product business
  • Revenue increased with an increase in the number of companies, MNC products start gaining traction

Scalability led to the creation of an ecosystem:

  • Increasing globalization of India economy led product business gaining ground
  • Few players emerged as market leaders focusing on product portfolio expansion, increasing customer base

Innovation opening new opportunities:

  • Emergence of SaaS and subscription model
  • Start-up’s ecosystem evolution and global acceptance of Indian product MNCs continue to strengthen its base in the Indian software product market

To support the journey, the most important role is played by India’s value proposition. Indian software product companies offer products that get well accepted by global companies and provide value for money. Products offer great value-driven features that are very difficult to replicate by global companies. Some of India’s value propositions are listed below:

Custom Pricing:

  • Indian Products firms have built custom pricing for both Enterprises and SMBs giving them the flexibility to buy and slowly scale the solutions across geographies.
  • Pricing models evolved from License Based to Subscription/ On-Demand to Transaction-based pricing.

Cloud Ready

  • India-based Product firms leverage cloud technology to deliver their solutions to global clients.
  • 80-90% of global enterprise buyers are looking for cloud-based solutions enabling scale and ease of deployment.

Marketplace of Integrations

  • Majority of Products offered by Indian firms are easily extensible either via native integrations or through open APIs.
  • SaaS product firms are moving to an online catalog or marketplace where customers can download the integrations they want.

Hassle-Free Implementation

  • Indian SaaS firms simplify maintenance by delivering over-the-air (OTA) updates via the cloud.
  • SMB Products are implemented without any setup process or integration hassles along with training support.

Another key area that further intensified the growth of products in India are cloud movement and SaaS ecosystem growth.

Cloud Movement

  • Enterprises are moving to a service and subscription economy with over 85% of companies offering cloud-only or hybrid cloud options.
  • ~58% of Companies offer both cloud and on-premises deployment of their software products

Soaring SaaS Growth:

  • SaaS start-ups turning unicorns and setting global standards
  • Global and Indian IPOs listing

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