- Wednesday, April 24, 2024
By: Eastern Eye Staff
India is home to one of the fastest growing software industries in the world. Last year, IDC reported that the Indian software market was growing at a rate of nearly 14% a year. It is currently worth over $6 billion.
The nation’s software industry is changing as fast as it is growing. A number of major trends are shaping the direction of the regional software market. Some of the biggest trends gripping the industry are listed below.
Indian software companies are investing in a lot of new technology. They are using services like Docker to streamline production. They are reducing costs and improving turnaround times by using container registries and other services.
Historically, software publishers in India focused primarily on serving the local market. India is the second most populated country in the world, so there is a large base of prospective customers.
However, software companies in India have recently started to rely more heavily on exports. Although the local economy still accounts for the majority of sales, foreign consumer customers and businesses will significantly bolster the bottom line of software companies throughout the country.
A number of factors are leading to the growth in software exports. One of the biggest variables is that other countries are starting to appreciate the quantity of highly talented computer engineers in India. Companies in other countries are also starting to procure more talented engineers in India in their quest to cut operating costs. The average salary for a programmer in the United States is $75,441. According to our calculations based on currency conversions and monthly rates, the average programmer in India earns about $2,500 a year. Since other countries have to pay payroll taxes or VAT when hiring local employees, they stand to save tens of thousands of dollars hiring software engineers in India.
Indian software companies are also becoming more reliant on artificial intelligence. Experts estimate that AI will add another $1 trillion to the Indian economy over the next 15 years.
Currently, IT and electronics account for the vast majority of the market for artificial intelligence solutions in India. However, plenty of other industries are investing in these services as well. Indian e-commerce companies are spending over $305 million on AI technology. Public research companies are spending $370.6 million on the same services.
Last year, the Ministry of Electronics and Information Technology created a new hub portal for software startups. This platform provides tremendous value for local software companies.
The government recognizes that software companies will continue to play a crucial role in the future of the economy in India. They will continue to invest more resources and services that will help them succeed. Their goal is to transform India into a software product nation within the next few years. This new goal was only outlined in 2019, but the Ministry of Electronics and Information Technology is confident that it will be met.
A handful of companies in India currently have a large hold on the market. They have maintained a oligopolistic market by creating new barriers to entry to keep new competitors out.
However, this is another factor that is gradually changing. Barriers to entry are becoming thinner. As a result, new software companies are being formed. The market share will be spread more evenly across a larger number of players in the future.
The Indian software industry is growing at a phenomenal rate. A number of major companies are developing new applications that stand to drive major economic growth.
Companies both in India and abroad should be aware of changes influencing the direction of the market. They may find that there are countless opportunities as it continues to expand. Indian software manufacturers are providing solutions to countless problems in every vertical from healthcare to cyber-security.
The country’s software industry is only beginning to see its true potential. It is likely to grow even more rapidly over the next few years.
