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‘IT companies to focus on developing software products’

As the Indian IT-ITeS industry is evolving from services to
products and end-to-end solutions, the revenues from software has doubled to $2.2
billion this year from $1.2 billion in 2008, said an industry body NASSCOM.

Ravi Gururaj, chairman of the Nasscom Product Council said
that India currently has 3,000 software product companies with a valuation of
$2 billion, which is expected to go up to $10 billion by 2020.

As the Indian IT-ITeS industry is evolving from services to
products and end-to-end solutions, the revenues from software has doubled to $2.2
billion this year from $1.2 billion in 2008, said an industry body NASSCOM.

Ravi Gururaj, chairman of the Nasscom Product Council said
that India currently has 3,000 software product companies with a valuation of
$2 billion, which is expected to go up to $10 billion by 2020.

“It is time for India
to look at non-linear growth in terms of impact and contribution in the
technology area. We are seeing early success with product companies built in
India in terms of valuation, and exits. This is building up positive momentum
for entrepreneurs to focus in this area,” he added.

“The growth in software products can be judged by the
fact that its revenues rose to USD 2.2 billion in 2013 from USD 1.2 billion in
2008,” said.  The industry has seen
rise of about 500 software product firms in 2013, she added.

Earlier this year, Nasscom had set up a ‘product council’ to
help develop the product ecosystem in India. The council is focused on a six pillar
engagement to enhance branding, market access, benchmarking, corporate connect,
product design and enablement of product solutions in India.

On the growth of the product eco-system, NASSCOM Senior Vice
President Sangeeta Gupta said that there is lot of potential in the start-up
business and the number of angel investors in India has risen for seven in 2007
to about 32 this year.

The IT-BPM Industry continues to build strong interest from
the VC/PE community as software, internet and mobile industries account for 65
per cent of total VC investments in India, NASSCOM said.

The transaction value of Venture Capital) VC/PE ( Private
Equity) deals in software products space since 2008 amounts to a total of USD
711 million, it added. The growth of the sector was driven by various factors
including increase in mobility devices, online transactions, and newer
technologies with lower operating costs, the industry body said.

Cloud technology is also expanding access to larger customer
base and driving demand for hosted applications, which will be the catalyst for
growth in the future, NASSCOM added.

[Source: Business Standard]
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