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India's Software Market to touch USD 5.1 billion by 2018

Indian software market is likely to touch the mark of USD 5.1 billion by the end of 2018, according to research firm IDC. In its report - Market Analysis Perspective: India Security Software and Appliances, 2017; the firm projected that the software market would grow at 11.9 percent year-on-year.

The enterprises, companies, and industries have invested in software product development.  As per the report, software applications contributed to the bulk of the spending with a 57.3 percent share in the first half of 2017. The System Infrastructure (SI) software and Application Development and Development shared 18.7 percent and 24 percent respectively. Indian software market has been one of the fastest growing and dynamic markets within APeJ (the Asia Pacific excluding Japan) region, the report said.

The market is driven by software application development and modernization in 2017. It indicates that the enterprises have been adoption software technologies. The companies across all the industry verticals and segments adopted the technology and digitization process. Most of the companies have preferred (customer relationship management) CRM software to increase their customer engagement. Experts believe that the growing trend could bring more investment into Indian software companies in 2018.

CRM Software is a major part of the entire Enterprise resource planning (ERP) suite, which will help the enterprises, companies, and industries to manage, engage, communicate and retain their customers. The digitization has made the process of CRM more effective and companies can reach to customers over their smartphones and other digital channels. By adopting the complete ERP software, the growth of the software market could increase in many folds.

ERP Software could be the best software for manufacturing industries, which contributed 16.51 percent to GDP in 2016. The Gross Value Added (GVA) from the manufacturing sector was US$ 350.4 billion in FY17.  The sector has been growing at CAGR of 7.32 percent between FY12 and FY17. It is speculated that it would grow by 7.7 percent in the Financial Year 2017.

It is also speculated that most of the manufacturing industries could adopt technologies like ERP software for automation and better productivity. If the major sector goes for IT and software adoption, the growth of the software market would grow much faster than expected rate.

Security software market is the second fastest growing market in the country. There has been a huge demand for cybersecurity software across the country. This is mainly due to various reports of cyber attack across the globe.