The use of pirated software by a mid-sized company in India can expose it to an export loss of $35 million, while the savings are at $0.84 million, less than a fraction of the expected loss.

IDC’s report predicts that a reduction in usage of pirated software in the manufacturing sector by a mere 10 per cent over the next four years will deliver compelling positive outcomes.

This is not just for the manufacturing segment, but also for the IT industry ($700 million in new revenue) and other related industries ($900 million in new revenue). Further, more than 15,000 jobs will also be created, the report added.

“Software piracy is expected to have a negative impact on India’s growing manufacturing sector. Both large and small enterprises in this sector will have to ensure IT compliance for continued sectoral growth and positive impact on the economy. The insidious challenge of software piracy in India is drawing global attention and might affect India’s competitive edge,” said Jaideep Mehta, ‎Vice-President and General Manager (South Asia) IDC.

The whitepaper was brought out against the backdrop of the Law Against Unfair Competition in the US.

> rajesh.kurup@thehindu.co.in