The software products market in India is expected to cross the $100-billion mark by 2025, from a mere $2.2 billion last year.
“The addressable market of IT-BPO industry globally is about $200 billion. We have already achieved half of it. But we are small with regard to software products segment. But this will grow to $10 billion by 2020, showing a growth of 24.2 per cent from the present base of $2.2 billion,” BVR Mohan Reddy, Chairman and Managing Director of Infotech Enterprises, said.
Delivering the keynote address at the Nasscom’s daylong conference on ‘India product journey: Orbit shift’ here on Thursday, he said the industry would then grow at a rapid pace of 58.5 per cent to reach the $100-billion mark.
Defending the numbers, he said the ongoing transition to an ‘experience economy’, disruptive technologies and the rise of digital world would trigger the growth of product segment.
He, however, said there was a huge a crunch for talent. “Early-stage funding is a major challenge for start-ups to grow, with over 50 per cent such firms are being forced to fund the project internally. Lack of original technology development ecosystem too is impacting the product segment adversely,” he said.
Saying that India has attained a critical mass of product firms with over 3,500 firms on the threshold of maturity stage, Reddy urged the Government to evolve mechanisms to fund the cash-starved firms.