Product cos to drive new wave of IT sector growth

The next wave of growth for the Indian Information Technology (IT) industry would be driven by product companies as a new breed of entrepreneurship is sweeping into the sector, according to Nasscom.

At the inauguration of the two-day product conclave on Wednesday, Nasscom president Som Mittal said that various factors have contributed to this growing number of software product companies from India. He felt that societal stigma on failure in entrepreneurship has lessened over the years encouraging large number of IT professionals to start their own ventures.

Mittal said mobile and internet are becoming the standard technology platforms for starting new ventures enabling many companies to become global in their operations. "The eco-system is fast developing to sustain the new ventures," he added.

Speaking on the occasion, Nasscom vice-chairman Krishnakumar Natarajan said that larger number of Indian product companies are coming out with solutions which is relevant to the domestic market. Nasscom also released a survey on the technology adoption by small & medium enterprises (SMEs) in India done in association with Nielsen titled "Nasscom AWSME India Survey 2012."

The survey highlighted that SMEs have a highly favourable disposition to usage of software but are currently working with a very limited level of automation. The data reveals that although 90% of SMEs surveyed were aware of the kind of software that can be installed on laptops or PCs, only 64% were actually using such technology. This presents a major opportunity for Indian technology and software providers as the survey identifies that the Indian SME market is open to the use of productivity enhancement software.

The survey also said that over 48% of the SMEs believe that business software usage would make the company more efficient and over 40% willing spend 3-4% of their average revenue on business software.

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