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Segment-wise
Break-up
Traditionally,
Indian software companies mainly concentrate on developing
application software for three main sectors namely,
Banking, Insurance & Other Financial Services, Manufacturing
and Retail & Distribution. But since the last few
years, the industry has also been focussing on four
more sectors, namely Communications, Government, Transport/Hotels
and Petroleum.
Collaborations
With Foreign Companies
India
is increasingly emerging as a software development center,
with more and more overseas companies setting up operations
in India either through 100% equity holding or Joint
Ventures with Indian Companies or Marketing or Technical
Collaborations.
Hardware
Skills
Majority
of Indian companies are skilled on many hardware platforms
including – PCs, Mainframes, Superminis, the macintosh
among others.
Top
Twenty Nasscom Exporters
There are currently more than 716 companies in India
which are engaged in software exports. In addition there
are another 230 small companies in the segment with
small values of exports. A list of the top twenty companies
which accounted for almost 63.23 per cent share of the
software exports revenues in 1998-99, is given in Annexure-I.
Top
Twenty Software Companies
A
large number of companies in India are involved both
in software exports as well as in the domestic software
market. NASSCOM’s Ranking as per annual revenue
of the top twenty software companies (exports + domestic)
is as per Annexure-II.
Forecast
According
to NASSCOM’s survey for the period 1998-2000, the
software industry in India will continue to grow by
more than 50% annually. The software exports are expected
to gross U.S $ 3.9 billion in 1999-2000. Exports are
expected to grow in 2000-2001 with focus on E-commerce,
I.T.Enabled Services, legacy to web; ASP etc. It is
projected that during the year 2001-02 software industry
in India would be close to US$ 14 billion.
Capital
Market Data
According
to research undertaken by Nasscom, Indian software scrips
commanded a market capitalization of approx. US$ 42
billion on December 30, 1999 constituting more than
23 per cent of the total market capitalization of the
Bombay Stock Exchange on that day. This makes it the
most capitalized sector in the Indian economy. If one
adds the assumed market capitalization of unlisted companies,
then the amount can be mind boggling.
Opportunities
In Software Industry
Global
Market
Global
market is large and rapidly changing. Market openings
are emerging across I.T services, software products,
I.T. enabled services and E-businesses.
Domestic
Demand
The
corporate, government and consumer sector of the Indian
domestic market offers a U.S.$18 billion opportunity
by 2008 to software and services companies. Financial
services industry and electronic government are potential
opportunity areas.
Outsourcing
During
the year 1998-99 more than 203 companies out of Fortune
1000 companies outsourced their software requirements
in India. Global Outsourcing business was worth USD
77 billion in 1997 and has been growing at 15-18% per
annum. A recent survey indicates that by 2002 more than
59 percent of the Fortune 1000 companies and other multinationals
will outsource some part of their application development
and maintenance activities.
Y2K
Clients
India
earned more than U.S.$ 2.5 billion from exports of Y2K
solutions and services. India has helped 104 of the
Fortune 500 companies to solve their Y2K problem. These
companies are expected to provide fresh opportunities
to Indian software and services companies in the near
future.
E-commerce/E-business
Market
India
not only has a huge opportunity to service this market
but also has a unique opportunity to address the needs
of the non-resident Indian community around the world.
This has already led to immense B2B and B2C activities
among Indians.
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