The Indian software products landscape is evolving rapidly – comprises of over 3,400 product firms and combined revenues of approx. USD 5.9 billion in FY2014. Both domestic revenue and exports of Indian product firms has been growing at ~10 per cent CAGR over the last five years. Unlike the other segments of the IT-BPM industry, while exports stand at USD 1.7 billion in FY2014, the domestic revenues is nearly 2.5X of exports, estimated at USD 4.2 billion
The industry is aiming to achieve USD 10 billion in revenues by 2020. Driven by demand from customers – enterprises, SMBs, government and retail consumers – and the emergence of disruptive technologies – this industry is on the threshold of receiving the thrust much needed to achieve this target.
The products landscape, it is quite established and dates back to the 1980s. Although it has grown significantly over the last 30+ years, the last 24 months have been particularly interesting with lot of momentum and excitement in the ecosystem. The ever increasing number of success stories from India, the vast presence of the global VCs, increased corporate interest, the availability of quality incubators/ accelerators, rising base of business & technology mentors are all converging together to further accelerate the growth momentum of the industry.
Amidst this rapid acceleration, a number of Indian product companies are realising the potential of expanding on to a global markets canvas. According to NASSCOM estimates, 43% of all Indian product start-ups are focusing on global markets, driven by numerous factors in terms of market opportunity, access to capital, favourable policies etc. Moreover, many companies are starting to relocate to global locations such as US, Singapore etc. to address the global market potential.
However, it is seen that only few of the companies have been able to succeed in this journey so far primarily because of marked differences between India and global markets. Henceforth, it becomes a key prerogative to understand the best practices/ success factors, embarking the successful journey to these global markets.
The study “Desi Products, Pardesi Markets – Indian software products building global businesses”, undertaken by NASSCOM in collaboration with Zinnov, is a handbook on how to succeed in global markets. It aims to educate Indian technology product companies on addressing global markets from India. The framework for going global has been designed based on in-depth discussions with several globally successful Indian start-ups and presents a collective base of best practices around important areas like market focus, product development, marketing, product management, global sales, customer support, IT & operations, as well as funding.
Framework – Best Practices Towards Going Global
Step 1: Global Focus: Have global view since inception; leverage India as test bed and accelerate expansion globally
Step 2: Relevant Product Development: Ensure viability of product for target markets by addressing Talent and communication related challenges
Step 3: Globally Visible Marketing: Transforming marketing from broad messaging to granular customer experiences
Step 4: Scaling Global Sales: Strategic sales planning through evolution stages can help optimize costs
Step 5: Scaling Product Management: Framework driven product management focus is crucial to stay abreast with market trends
Step 6: Customer Support: Optimize support cost and focus on iterative product development to address common customer support issues
Step 7: IT & Operational Sophistication: Focus on sophistication & scale potential of modern IT infrastructure
Step 8: Raising Capital: With global expansion, access to investors in global priority markets may help accelerated expansion
The current product landscape clearly shows that a medley of products, built on Indian innovation, are slowly finding their way to the global markets. While it has been a definite move here, there is still a long way to go and I believe “going global from day 1’ is a crucial strategy, which needs to be carefully evaluated and implemented. With the set of best practices, this report will surely serve as a guide for the product companies, aiming to target global markets.
The detailed report will be available on our website by the end of this month!!