India Software Market Tops Growth Rate Among BRICS

India software market has shown the highest growth rate among BRICS (Brazil, Russia, India, China and South Africa) countries.

India software revenue totaled $4 billion in 2014, an 8.3 percent increase from 2013 revenue of $3.7 billion, according to Gartner. Apart from large vendors there’s a thriving ecosystem of product startups that are getting incubated in India, and as such, they are helping drive software adoption through their innovative, small foot print low cost products.

“The enterprise software marketplace is dynamic and ever-changing. Its growth and structure are being shaped by the factors and forces of decentralized purchasing, consumerization and mobility, influence of emerging markets, cloud-based implementations, and new consumption models,” said Bhavish Sood, research director, Gartner.”

“Improvement in global economic conditions has somewhat relaxed the strain on the Indian economy, thereby boosting corporate sentiments. Along with a new stable government at the center, this has helped in alleviating concerns about economic growth — to a certain extent — with early signs of spending in growth initiatives beginning to emerge,” added Sood.

Several leading trends that are common across the India software market are: Software as a service (SaaS) adoption and development; Open-source software (OSS) adoption and its broader market implications; and Changing buying behaviors and purchasing styles associated with the digital business.

Microsoft maintained the No. 1 position in software revenue in India, accounting for 25 percent of overall sales in 2014. The top three vendors in the market (Microsoft, Oracle and IBM), represent 50 percent of total software sales in India.

Among the main drivers for increased IT adoption is the appreciation of IT as an enabler for business change. Gartner analysts expect enterprises to continue to invest in IT to improve productivity and drive enterprise growth by delivering operational results, while reducing enterprise costs and attracting and retaining customers.

“Government plans around Digital India, smart cities, and increased focus on broadband internet infrastructure is expected to drive local consumption of IT software and associated services,” said Sood.

“After the last federal election the mood of the economy has changed, and we are slowly seeing a revival in IT spending particularly in areas of digital and nexus of forces that combine cloud, mobile, social and big data,” commented Sood.

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