India is the third largest domestic market for IT services in Asia/Pacific region with local market forecast to reach $15 billion by end-2014, including software development, ranking it amongst the major emerging markets for IT services worldwide. India IT services market posted revenue of $8 billion in 2010 with industry analysts forecasting market growth of 18 percent, year-on-year, to $9.5 billion in 2011. Software development in India is gaining momentum partly due to the competitive costs offered by local software vendors and the country is rapidly transforming into a regional software development center, where numerous software developers compete on a highly fragmented market. In addition, India offers great competitive advantages to companies that want to outsource their services there or hire local software developers.
The domestic market for IT services is driven by high GDP growth in the past decade as well as government-backed infrastructure projects that fuel development of advanced IT services and software applications deployed by manufacturers, while the financial services sector, which traditionally relies on sophisticated technologies, is also booming. Telecommunications is another sector of the local economy that boosts software development market in India, demanding high-quality products and forcing local software vendors and service providers to compete with large multinationals on equal terms.
India offers tremendous growth opportunities both in terms of domestic market and as an outsourcing destination because of the evident trend to lower the cost of IT services. Organisations worldwide seek alternatives to high IT usage costs, looking for ways to reduce costs and outsource services, while a growing number of enterprises realise that developing customised business solutions in software development centers like India can prove to be less expensive in the long run, compared to the purchase of high-priced enterprise software offered by multinational software vendors.
Actually, India software development market currently stands where the Silicon Valley stood in the early 1980s; namely, numerous small and mid-sized software vendors offer highly competitive services while a few of those companies are destined to witness their products and business models become worldwide industry standards. Local software vendors and developers are strategically positioned within the region while modern infrastructure allows service providers to offer competitive prices for outsourced services to enterprises headquartered at all continents. To some extent, fragmentation of local IT services market can be regarded as a competitive advantage, stimulating new market entrants and players to offer more competitive services and high-quality products at a reasonable price.
Software development in India can boast traditions and achievements a few markets in the region have with local software developers working under projects commissioned by leading world software vendors. The country’s strategic position in the region and the fast-paced economic development that earned the country a place in the BRIC group (Brazil, Russia, India, China) of the fastest developing emerging markets will inevitably result in marked growth of India’s market for IT services in the near future. Furthermore, local software development is maturing and now can offer solutions designed to compete on equal terms with products developed by leading world software vendors.
The domestic market for IT services is driven by high GDP growth in the past decade as well as government-backed infrastructure projects that fuel development of advanced IT services and software applications deployed by manufacturers, while the financial services sector, which traditionally relies on sophisticated technologies, is also booming. Telecommunications is another sector of the local economy that boosts software development market in India, demanding high-quality products and forcing local software vendors and service providers to compete with large multinationals on equal terms.
India offers tremendous growth opportunities both in terms of domestic market and as an outsourcing destination because of the evident trend to lower the cost of IT services. Organisations worldwide seek alternatives to high IT usage costs, looking for ways to reduce costs and outsource services, while a growing number of enterprises realise that developing customised business solutions in software development centers like India can prove to be less expensive in the long run, compared to the purchase of high-priced enterprise software offered by multinational software vendors.
Actually, India software development market currently stands where the Silicon Valley stood in the early 1980s; namely, numerous small and mid-sized software vendors offer highly competitive services while a few of those companies are destined to witness their products and business models become worldwide industry standards. Local software vendors and developers are strategically positioned within the region while modern infrastructure allows service providers to offer competitive prices for outsourced services to enterprises headquartered at all continents. To some extent, fragmentation of local IT services market can be regarded as a competitive advantage, stimulating new market entrants and players to offer more competitive services and high-quality products at a reasonable price.
Software development in India can boast traditions and achievements a few markets in the region have with local software developers working under projects commissioned by leading world software vendors. The country’s strategic position in the region and the fast-paced economic development that earned the country a place in the BRIC group (Brazil, Russia, India, China) of the fastest developing emerging markets will inevitably result in marked growth of India’s market for IT services in the near future. Furthermore, local software development is maturing and now can offer solutions designed to compete on equal terms with products developed by leading world software vendors.
