Including the domestic market, the Indian IT industry is currently pegged at $118 billion.
Labour arbitrage has an upper limit, with IT services becoming more commoditized and highly crowded IT services market, we have to create the next big trendThe industry has seen rise of about 500 software product firms in 2013Israel, far smaller than India, has managed to report the second highest number of merger and acquisition (M&A) transactions in the start-up products space. And, the nascent but fast growing Indian start-up system wants to understand why. - http://smartinvestor.business-standard.com/market/Marketnews-230645-Marketnewsdet-Nasscom_shows_interest_in_Israel_start_ups.htm#.UzUUiGKSyBI
Combinatorial Innovation implies the process of innovation that often relies heavily on combining and recombining previous innovations. For example: an innovation that uses the combination of Cloud, Mobility, and Social Media. (Nexus of Forces). The broader and deeper the pool of accessible ideas and individuals, the more opportunities there are for innovation.
Existence of ‘soft infrastructure’, mobile proliferation, commoditization of computing hardware and the advent of cloud computing have made connectivity and computing capability nearly ubiquitous across India
Need for Software Product Companies for India's Economic Growth