This document provides an overview of the software industry in India. It discusses that the software industry is one of the fastest growing industries globally and in India. The Indian software industry has experienced significant growth in exports and revenues in recent years. Some of the major regions for the software industry in India include Bangalore, Chennai, Hyderabad, Delhi, Mumbai and Pune. Key Indian software companies like Infosys, TCS and Wipro are discussed along with some of their major products. The SWOT analysis highlights strengths like skilled workforce but also weaknesses like infrastructure challenges and threats from other competing nations.

1. SOFTWARE INDUSTRY
PRESENTATION BY: ANJALI SINGH
ANKIT KACHAWA
ANJALI KAUSHAL

4. INTRODUCTION
• SOFTWARE INDUSTRY IS THE MOST FASTEST GROWING INDUSTRY ACROSS
GLOBE.
• THE SOFTWARE INDUSTRY INCLUDES BUSINESSES FOR DEVELOPMENT,
MAINTENANCE AND PUBLICATION OF SOFTWARE
• THE INDUSTRY ALSO INCLUDES SOFTWARE SERVICES, SUCH AS
TRAINING,
DOCUMENTATION
CONSULTING

5. INTRODUCTION-HISTORY
• THE WORD "SOFTWARE" WAS COINED AS A PRANK AS EARLY AS 1953, BUT DID
NOT APPEAR IN PRINT UNTIL THE 1960S
• BEFORE THIS TIME, COMPUTERS WERE PROGRAMMED EITHER BY CUSTOMERS,
OR THE FEW COMMERCIAL COMPUTER VENDORS OF THE TIME, SUCH AS
UNIVAC AND IBM.
• THE FIRST COMPANY FOUNDED TO PROVIDE SOFTWARE PRODUCTS AND
SERVICES WAS COMPUTER USAGE COMPANY IN 1955
• THE SOFTWARE INDUSTRY EXPANDED IN THE EARLY 1960S , UNIVERSITIES,
GOVERNMENT, AND BUSINESS CUSTOMERS CREATED A DEMAND FOR
SOFTWARE.

6. • INFLUENTIAL OR TYPICAL SOFTWARE COMPANIES BEGUN IN THE EARLY 1960S
INCLUDED
ADVANCED COMPUTER TECHNIQUES,
AUTOMATIC DATA PROCESSING,
APPLIED DATA RESEARCH,
INFORMATICS GENERAL.
• DOS, MICROSOFT'S FIRST OPERATING SYSTEM PRODUCT, WAS THE
DOMINANT OPERATING SYSTEM AT THE TIME
INTRODUCTION-HISTORY

7. INTRODUCTION-SIZE OF INDUSTRY
• ACCORDING TO INDUSTRY ANALYST GARTNER, THE SIZE OF THE WORLDWIDE
SOFTWARE INDUSTRY IN 2013 WAS US$407.3 BILLION, AN INCREASE OF 4.8%
OVER 2012.
• THE LARGEST FOUR SOFTWARE VENDORS WERE
MICROSOFT
ORACLE CORPORATION
IBM
SAP RESPECTIVELY
• MERGERS AND ACQUISITIONS
• DEALS

8. INTRODUCTION-BUSINESS MODELS
• SOFTWARE-AS-A-SERVICE, OR SAAS
SAAS REDUCES THE CONCERNS ABOUT UNAUTHORIZED COPYING
• NETWORK EFFECTS IN SOFTWARE ECOSYSTEMS
NETWORKS OF COMPANIES, AND THEIR CUSTOMERS ARE AN IMPORTANT ELEMENT
IN THE STRATEGY OF SOFTWARE COMPANIES.

9. SOFTWARE INDUSTRY IN INDIA
• INFORMATION TECHNOLOGY IN INDIA IS AN INDUSTRY CONSISTING OF TWO
MAJOR COMPONENTS:
 IT SERVICES
BUSINESS PROCESS OUTSOURCING (BPO).
• THE SECTOR HAS INCREASED ITS CONTRIBUTION TO INDIA'S GDP FROM 1.2% IN
1998 TO 7.5% IN 2012

10. • ACCORDING TO NASSCOM, THE SECTOR AGGREGATED REVENUES OF US$100
BILLION IN 2012, WHERE EXPORT REVENUE STOOD AT US$69.1 BILLION AND
DOMESTIC AT US$31.7 BILLION, GROWING BY OVER 9%.
• THE IT SECTOR IN INDIA IS GENERATING 2.5 MILLION DIRECT EMPLOYMENT
• IT IS ALSO THE WORLD'S LARGEST SOURCING DESTINATION, ACCOUNTING FOR
APPROXIMATELY 52 PER CENT OF THE US$ 124-130 BILLION MARKET.
SOFTWARE INDUSTRY IN INDIA

11. SOFTWARE INDUSTRY IN INDIA
•MARKET SIZE
THE INDIAN IT-BPM INDUSTRY IS EXPECTED TO ADD REVENUES OF US$ 13-14 BILLION
TO THE EXISTING REVENUES BY FY15, ACCORDING TO NATIONAL ASSOCIATION OF
SOFTWARE AND SERVICES COMPANIES (NASSCOM).
THE INDUSTRY GREW AT A COMPOUND ANNUAL GROWTH RATE (CAGR) OF 13.1
PER CENT DURING FY08-13.
TOTAL EXPORTS FROM THE IT-BPM SECTOR (EXCLUDING HARDWARE) WERE
ESTIMATED AT US$ 76 BILLION DURING FY13.

12. •MARKET SIZE
 EXPORT OF IT SERVICES HAS BEEN THE MAJOR CONTRIBUTOR, ACCOUNTING FOR 57.9
PER CENT OF TOTAL IT EXPORTS (EXCLUDING HARDWARE) IN FY13.
 BPM ACCOUNTED FOR 23.5 PER CENT OF TOTAL IT EXPORTS DURING THE SAME FISCAL.
 THE DATA CENTRE INFRASTRUCTURE MARKET OF INDIA IS ESTIMATED TO REACH US$ 2.03
BILLION IN 2015, A 5.4 PER CENT INCREASE FROM US$ 1.92 BILLION IN 2014.
SOFTWARE INDUSTRY IN INDIA

13. •SHARE IN GDP
INDIA’S GROSS DOMESTIC PRODUCTION (GDP) AT CURRENT PRICES IS ESTIMATED
TO BE RS. 11355073 CRORE (US$ 1879.66 BILLION).
COMPUTER SOFTWARE / SERVICES PRODUCTION ESTIMATED AT US$ 103 BILLION
ACCOUNTS FOR A SHARE OF 5.48 PERCENT IN INDIA’S GDP AT CURRENT PRICES
DURING THE YEAR 2013-14.
SOFTWARE INDUSTRY IN INDIA

14. SOFTWARE INDUSTRY IN INDIA
•INVESTMENTS
ACCORDING TO DATA RELEASED BY THE DEPARTMENT OF INDUSTRIAL POLICY AND
PROMOTION (DIPP), THE COMPUTER SOFTWARE AND HARDWARE SECTOR
ATTRACTED FOREIGN DIRECT INVESTMENT (FDI) WORTH US$ 13,238.58 MILLION
BETWEEN APRIL 2000 AND SEPTEMBER 2014.
INFOSYS PLANS TO INVEST RS 1,400 CRORE (US$ 228.04 MILLION) IN A CAMPUS
PROPOSED TO BE BUILT IN NOIDA, UTTAR PRADESH.

15. •INVESTMENTS
THE PROJECT IS ESTIMATED TO GENERATE 35,000 DIRECT AND INDIRECT JOBS.
GENPACT LTD HAS SIGNED AN AGREEMENT WITH THE US-BASED AUTOMATION
ANYWHERE TO PROVIDE AUTOMATED BUSINESS PROCESSES FOR ITS CLIENTS.
VISA PLANS TO SET UP A TECHNOLOGY CENTRE IN INDIA IN 2014 AND JOIN A HOST
OF GLOBAL SYSTEM PLAYERS WHO HAVE ESTABLISHED TECHNOLOGY CENTRES IN
THE COUNTRY TO ACCESS ITS SOFTWARE AND ENGINEERING TALENT.
SOFTWARE INDUSTRY IN INDIA

16. •GOVERNMENT INITIATIVES
ITS SPENDING ON INFORMATION TECHNOLOGY (IT) WILL REACH US$ 7.2 BILLION IN
2015, A FIVE PER CENT INCREASE OVER 2014, ACCORDING TO A REPORT BY
GARTNER INC.
THE GOVERNMENT OF INDIA THROUGH THE BOARD OF APPROVAL (BOA) UNDER
THE UNION MINISTRY OF COMMERCE AND INDUSTRY HAS APPROVED WIPRO LTD'S
PLAN OF SETTING UP A SPECIAL ECONOMIC ZONE (SEZ) IN VISAKHAPATNAM.
SOFTWARE INDUSTRY IN INDIA

17. •GOVERNMENT INITIATIVES
THE GOVERNMENT OF INDIA HAS LAUNCHED THE .BHARAT DOMAIN NAME WHICH
WILL COVER EIGHT LANGUAGES.
 THE DOMAIN WILL HELP TO BRIDGE THE DIGITAL DIVIDE AND ENHANCE THE REACH
OF THE INTERNET TO REMOTE VILLAGES.
THE CENTRAL GOVERNMENT AND THE RESPECTIVE STATE GOVERNMENTS ARE
EXPECTED TO COLLECTIVELY SPEND US$ 6.4 BILLION ON IT PRODUCTS AND
SERVICES IN 2014, AN INCREASE OF 4.3 PER CENT OVER 2013, ACCORDING TO A
STUDY BY GARTNER
SOFTWARE INDUSTRY IN INDIA

18. STRENGTH WEAKNESS
OPPORTUNITIES THREATS
SOFTWARE INDUSTRY IN INDIA
SWOT ANALYSIS

19. •STRENGTHS
HIGHLY SKILLED, ENGLISH-SPEAKING WORKFORCE.
ABUNDANT MANPOWER
CHEAPER WORKFORCE THAN THEIR WESTERN COUNTERPARTS. ACCORDING TO
NASSCOM, THE WAGE DIFFERENCE IS AS HIGH AS 70-80 PERCENT WHEN
COMPARED TO THEIR WESTERN COUNTERPARTS.
LOWER ATTRITION RATES THAN IN THE WEST.
SWOT ANALYSIS

20. SWOT ANALYSIS
•STRENGTHS
DEDICATED WORKFORCE AIMING AT MAKING A LONG-TERM CAREER IN THE
ROUND-THE-CLOCK ADVANTAGE FOR WESTERN COMPANIES DUE TO THE HUGE TIME
DIFFERENCE
LOWER RESPONSE TIME WITH EFFICIENT AND EFFECTIVE SERVICE.
OPERATIONAL EXCELLENCE
CONDUCIVE BUSINESS ENVIRONMENT

21. •WEAKNESSES
RECENT MONTHS HAVE SEEN A RISE IN THE LEVEL OF ATTRITION RATES AMONG ITES
WORKERS WHO ARE QUITTING THEIR JOBS TO PURSUE HIGHER STUDIES.
OF LATE WORKERS HAVE SHOWN A TENDENCY NOT TO PURSUE ITES AS A FULL-TIME
CAREER.
THE COST OF TELECOM AND NETWORK INFRASTRUCTURE IS MUCH HIGHER IN INDIA
THAN IN THE US.
SWOT ANALYSIS

22. •WEAKNESSES
MANPOWER SHORTAGE
LOCAL INFRASTRUCTURE
POLITICAL OPPOSITION FROM DEVELOPED COUNTRIES
SWOT ANALYSIS

23. •OPPORTUNITIES
TO WORK CLOSELY WITH ASSOCIATIONS LIKE NASSCOM TO PORTRAY INDIA AS THE
MOST FAVOURED ITES DESTINATION IN THE WORLD.
INDIAN ITES COMPANIES SHOULD WORK CLOSELY WITH WESTERN GOVERNMENTS
AND ASSUAGE THEIR CONCERNS AND ISSUES.
INDIA CAN BE BRANDED AS A QUALITY ITES DESTINATION RATHER THAN A LOW-
COST DESTINATION.
$69 BILLION ITES BUSINESS BY 2010
$97.5 BILLION IT (CONSULTING, SOFTWARE SOLUTIONS) MARKET BY 2010
SWOT ANALYSIS

24. •THREATS
 THE ANTI-OUTSOURCING LEGISLATION IN THE US STATE OF NEW JERSEY. THREE MORE
STATES IN THE UNITED STATES ARE PLANNING LEGISLATION AGAINST OUTSOURCING
CONNECTICUT, MISSOURI AND WISCONSIN.
 WORKERS IN BRITISH TELECOM HAVE PROTESTED AGAINST OUTSOURCING OF WORK TO
INDIAN BPO COMPANIES.
 OTHER ITES DESTINATIONS SUCH AS CHINA, PHILIPPINES AND SOUTH AFRICA COULD
HAVE AN EDGE ON THE COST FACTOR.
 SLOWDOWN OF DEMAND
SWOT ANALYSIS

25. TYPES OF PRODUCT
SOFTWARE
APPLICATION TOOLS &
EQUIPMENTS
SYSTEM
I.T.
SERVICES
B.P.O. CLOUD
COMPUTING
K.P.O.

26. •SOFTWARE:-
1. APPLICATION
2. SYSTEM
3. TOOLS & EQUIPMENTS
TYPES OF PRODUCT

27. •I.T. SERVICES
1. B.P.O.
2. K.P.O.
3.CLOUD COMPUTING
TYPES OF PRODUCT

28. •EXPORTED
INDIA HAS ALREADY ESTABLISHED HER BRAND EQUITY IN THE GLOBAL IT MARKET.
INDIAN IT SOFTWARE AND SERVICES FIRMS OFFER SOFTWARE
PRODUCT/PACKAGES; A WIDE SPECTRUM OF IT SERVICES INCLUDING SYSTEM
MANAGEMENT AND MAINTENANCE, MOBILE APPLICATIONS, CLOUD COMPUTING
NEXT GENERATION USER INTERFACES, GPU COMPUTING, CONSULTANCY SERVICES,
SYSTEM INTEGRATION, CHIP DESIGN, E-GOVERNANCE, E-COMMERCE, IT ENABLED
SERVICES COVERING BANKING/FINANCIAL/ INSURANCE SECTOR.
TYPES OF PRODUCT

29. •EXPORTED
 THEIR IT ENABLED SERVICES ALSO INCLUDE CAD/CAM MULTIMEDIA, ANIMATION WORK.
 BPO (BUSINESS PROCESS OUTSOURCING) ASSIGNMENTS, CALL CENTRE RELATED
ASSIGNMENTS, AS WELL AS KNOWLEDGE PROCESS OUTSOURCING (KPO) / LEGAL PROCESS
OUTSOURCING (LPO), MEDICAL LAB, DIAGNOSTIC AND DENTAL SERVICES, MEDICAL
TRANSCRIPTION SERVICES, E-PUBLISHING DATA CONVERSION OR DIGITIZATION, TYPE-
SETTING, COPY EDITING, CONTENT AND DESIGN, GRAPHICS ETC.
TYPES OF PRODUCT

30. FIVE SOFTWARE
COMPANIES OF INDIA
AND THEIR PRODUCTS

31. INDIAN SOFTWARE COMPANIES
1. INFOSYS TECHNOLOGIES LTD. –
INDIA’S MOST WELL-KNOWN LARGE SOFTWARE FIRM.
• BANCS 2000 – A BANKING PRODUCT FOR THE DOMESTIC AND INTERNATIONAL
MARKET.
2. RAMCO SYSTEMS –
ONE OF INDIA’S LARGER PRODUCT-FOCUSED SOFTWARE FIRMS.
• MARSHAL (LATER RE-NAMED E-APPLICATIONS) – ENTERPRISE RESOURCE PLANNING
PRODUCT.

32. INDIAN SOFTWARE COMPANIES
3. CONCEPT SOFTWARE –
A SMALL SOFTWARE COMPANY FOCUSSING ON MULTI-LANGUAGE DESKTOP
PUBLISHING PRODUCTS.
• INPAGE – AN ARABIC SCRIPT BASED MULTILANGUAGE DESKTOP PUBLISHING
SOFTWARE PRODUCT.
4. EASTERN SOFTWARE SYSTEMS –
A SMALL SOFTWARE COMPANY FOCUSING ON ENTERPRISE RESOURCE
PLANNING PRODUCTS.
• MAKESS - ENTERPRISE RESOURCE PLANNING PRODUCT TARGETED AT SMALL
COMPANIES.

33. INDIAN SOFTWARE COMPANIES
5. TATA CONSULTANCY SERVICES –
INDIA’S LARGEST SOFTWARE COMPANY. PART OF THE TATA CONGLOMERATE AND
PRIVATELY HELD.
• EX – FINANCIAL ACCOUNTING PRODUCT POSITIONED AS THE WORLD'S FRIENDLIEST
ACCOUNTING SOFTWARE.

34. REGIONS OF SOFTWARE
INDUSTRY IN INDIA• BANGALORE
• CHENNAI
• HYDERABAD
• DELHI
• MUMBAI
• PUNE
• COIMBATORE
• BHUBANESWAR
• THIRUVANANTHAPURAM
• KOCHI

35. OWN POINT OF VIEW
• INDIA CONTINUES TO BE THE TOPMOST OFFSHORING DESTINATION FOR IT COMPANIES
FOLLOWED BY CHINA AND MALAYSIA IN SECOND AND THIRD POSITION, RESPECTIVELY.
• LEADING IT SERVICES FIRMS ARE EXPANDING THEIR TRADITIONAL OFFERINGS (IN INDIA)
TO INCLUDE RESEARCH AND DEVELOPMENT (R&D), PRODUCT DEVELOPMENT, AND
OTHER NICHE SERVICES
• INDIA HAS THE POTENTIAL TO BUILD A US$ 100 BILLION SOFTWARE PRODUCT INDUSTRY
BY 2025, ACCORDING TO INDIAN SOFTWARE PRODUCT INDUSTRY ROUNDTABLE (ISPIRT).
• THE SOFTWARE PRODUCTS MARKET IN INDIA, WHICH INCLUDES ACCOUNTING
SOFTWARE AND CLOUD COMPUTING-BASED TELEPHONY SERVICES, IS EXPECTED TO
GROW AT 14 PER CENT IN 2014.