Software in India: Industry Profile

Software in India
Industry Profile
Reference Code: 0102-0381

Publication date: December 2009
www.datamonitor.com
Datamonitor USA Datamonitor Europe Datamonitor Germany Datamonitor Asia Pacific
245 Fifth Avenue Charles House Kastor & Pollux Level 46, 2 Park Street
4th Floor 108-110 Finchley Road Platz der Einheit 1 Sydney, NSW 2000
New York, NY 10016 London NW3 5JJ 60327 Frankfurt Australia
USA United Kingdom Deutschland
t: +1 212 686 7400 t: +44 20 7675 7000 t: +49 69 9754 4517 t: +61 2 8705 6900
f: +1 212 686 2626 f: +44 20 7675 7500 f: +49 69 9754 4900 f: +61 2 8705 6901
e: usinfo@datamonitor.com e: eurinfo@datamonitor.com e: deinfo@datamonitor.com e: apinfo@datamonitor.com
ABOUT DATAMONITOR
ABOUT DATAMONITOR
Datamonitor is a leading business information company specializing in industry

analysis.
Through its proprietary databases and wealth of expertise, Datamonitor provides

clients with unbiased expert analysis and in depth forecasts for six industry sectors:
Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial
Services.
The company also advises clients on the impact that new technology and
eCommerce will have on their businesses. Datamonitor maintains its headquarters in
London, and regional offices in New York, Frankfurt, and Hong Kong. The company
serves the world’s largest 5000 companies.
Datamonitor's premium reports are based on primary research with industry panels
and consumers. We gather information on market segmentation, market growth and
pricing, competitors and products. Our experts then interpret this data to produce
detailed forecasts and actionable recommendations, helping you create new business
opportunities and ideas.
Our series of company, industry and country profiles complements our premium
products, providing top-level information on 10,000 companies, 2,500 industries and
50 countries. While they do not contain the highly detailed breakdowns found in
premium reports, profiles give you the most important qualitative and quantitative
summary information you need - including predictions and forecasts.
All Rights Reserved.
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by
any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of
the publisher, Datamonitor.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed.
Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based
on information gathered in good faith from both primary and secondary sources, whose accuracy we are
not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions
taken based on any information that may subsequently prove to be incorrect.
India - Software
© Datamonitor (Published December 2009) Page 2
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Market Value
The Indian software market grew by 22.1% in 2009 to reach a value of $2,461 million.
Market Value Forecast
In 2014, the Indian software market is forecast to have a value of $6,693.6 million, an
increase of 172% since 2009.
Market Segmentation I
Network and database management sales generated 24.5% of the Indian software
market's overall revenues.
Market Segmentation II
India accounts for 5.8% of the Asia-Pacific software market's value.
India - Software
CONTENTS
TABLE OF CONTENTS
EXECUTIVE SUMMARY 3
CHAPTER 1 Market Overview 7
1.1 Market Definition 7
1.2 Research Highlights 7
1.3 Market Analysis 8
CHAPTER 2 Market Value 9
CHAPTER 3 Market Segmentation I 10
CHAPTER 4 Market Segmentation II 11
CHAPTER 5 Five Forces Analysis 12
5.1 Summary 12
5.2 Buyer Power 13
5.3 Supplier Power 15
5.4 New Entrants 16
5.5 Substitutes 18
5.6 Rivalry 20
CHAPTER 6 Leading Companies 21
6.1 Microsoft Corporation 21
6.2 International Business Machines Corporation 24
6.3 Tata Consultancy Services Limited 28
6.4 Oracle Corporation 31
India - Software
CONTENTS
CHAPTER 7 Market Forecasts 34
7.1 Market Value Forecast 34
CHAPTER 8 Macroeconomic Indicators 35
CHAPTER 9 Appendix 37
9.1 Methodology 37
9.2 Industry Associations 38
9.3 Related Datamonitor Research 38
India - Software
CONTENTS
LIST OF TABLES
Table 1: India Software Market Value: $ million, 2005-2009(e).........................................9
Table 2: India Software Market Segmentation I: % Share, by Value, 2009(e) ................10
Table 3: India Software Market Segmentation II: % Share, by Value, 2009(e) ...............11
Table 4: Key Facts: Microsoft Corporation......................................................................21
Table 5: Key Financials: Microsoft Corporation ..............................................................23
Table 6: Key Facts: International Business Machines Corporation .................................24
Table 7: Key Financials: International Business Machines Corporation..........................27
Table 8: Key Facts: Tata Consultancy Services Limited .................................................28
Table 9: Key Financials: Tata Consultancy Services Limited..........................................30
Table 10: Key Facts: Oracle Corporation..........................................................................31
Table 11: Key Financials: Oracle Corporation ..................................................................33
Table 12: India Software Market Value Forecast: $ million, 2009-2014 ............................34
Table 13: India Size of Population (million) , 2005-2009(e) ..............................................35
Table 14: India GDP (Current Prices, $ billion), 2005-2009(e)..........................................35
Table 15: India Inflation, 2005-2009(e) .............................................................................35
Table 16: India Exchange Rate, 2005-2009(e) .................................................................36
India - Software
MARKET OVERVIEW
CHAPTER 1 MARKET OVERVIEW
1.1 Market Definition
The computer software market consists of systems and application software.

Systems software comprises operating systems, network and database management,
development tools and programming languages, and other systems software.
Application software comprises general business productivity and home use
applications, cross-industry and vertical market applications, and utilities and other
application software. Market value figures are assessed at manufacturer selling price
(MSP), based on revenues from software sales and licenses. Any currency
conversions used in the creation of this report have been calculated using constant
2007 annual average exchange rates.
For the purpose of this report Asia-Pacific is deemed to comprise of Australia, China,
Japan, India, Singapore, South Korea and Taiwan.
1.2 Research Highlights
The Indian software market generated total revenues of $2.5 billion in 2009,
representing a compound annual growth rate (CAGR) of 35.4% for the period
spanning 2005-2009.
Network and database management sales proved the most lucrative for the Indian
software market in 2009, generating total revenues of $603 million, equivalent to
24.5% of the market's overall value.
The performance of the market is forecast to decelerate, with an anticipated CAGR of

22.2% for the five-year period 2009-2014, which is expected to drive the market to a
value of $6.7 billion by the end of 2014.
India - Software
MARKET OVERVIEW
1.3 Market Analysis
Of all the countries considered in this profile, India has displayed the strongest growth
in its software market. Despite some forecast deceleration going forward to 2014,
revenue expansion is expected to remain very strong.
The Indian software market generated total revenues of $2.5 billion in 2009,
representing a compound annual growth rate (CAGR) of 35.4% for the period
spanning 2005-2009. In comparison, the Chinese and Japanese markets grew with
CAGRs of 25.2% and 1% respectively, over the same period, to reach respective
values of $9.8 billion and $20 billion in 2009.
Network and database management sales proved the most lucrative for the Indian
software market in 2009, generating total revenues of $603 million, equivalent to
24.5% of the market's overall value. In comparison, sales of operating system
software generated revenues of $521.4 million in 2009, equating to 21.2% of the
market's aggregate revenues.
The performance of the market is forecast to decelerate, with an anticipated CAGR of

22.2% for the five-year period 2009-2014, which is expected to drive the market to a
value of $6.7 billion by the end of 2014. Comparatively, the Chinese and Japanese
markets will grow with CAGRs of 17.2% and 3.1% respectively, over the same period,
to reach respective values of $21.6 billion and $23.3 billion in 2014.
India - Software
MARKET VALUE
CHAPTER 2 MARKET VALUE
The Indian software market grew by 22.1% in 2009 to reach a value of $2,461 million.
The compound annual growth rate of the market in the period 2005-2009 was 35.4%.
Table 1: India Software Market Value: $ million, 2005-2009(e)
Year $ million INR million % Growth
2005 731.7 32,060.0

2006 1,134.8 49,720.0 55.10%
2007 1,506.1 65,990.0 32.70%
2008 2,015.1 88,290.0 33.80%
2009(e) 2,461.0 107,826.6 22.10%
CAGR, 2005-2009: 35.4%
Source: Datamonitor DATAMONITOR
Figure 1: India Software Market Value: $ million, 2005-2009(e)
$ million % Growth
3,000 60.0%
2,500 50.0%
2,000 40.0% % Growth

$ million
1,500 30.0%
1,000 20.0%
500 10.0%
0 0.0%
2005 2006 2007 2008 2009
India - Software
MARKET SEGMENTATION I
CHAPTER 3 MARKET SEGMENTATION I
Network and database management sales generated 24.5% of the Indian software
market's overall revenues.
Sales of operating system software generated 21.2% of the market's aggregate

revenues.
Table 2: India Software Market Segmentation I: % Share, by Value,

2009(e)
Category % Share
Network and Database management 24.50%

Operating system software 21.20%
General business productivity and
home use applications 16.20%
Other system software 15.10%
Cross-industry and vertical
application 14.10%
Other application software 8.90%
Total 100.0%
Figure 2: India Software Market Segmentation I: % Share, by Value,

2009(e)
Other application
Netw ork and
softw are
Database
8.9%
Cross-industry management
and vertical 24.5%
application
14.1%
Other system
softw are
15.1%
General Operating
business system softw are
productivity and 21.2%
home use
applications
16.2%
India - Software
MARKET SEGMENTATION II
CHAPTER 4 MARKET SEGMENTATION II
India accounts for 5.8% of the Asia-Pacific software market's value.
Japan contributes 46.8% of the regional market's value.
Table 3: India Software Market Segmentation II: % Share, by Value,

2009(e)
Geogarphy % Share
Japan 46.80%
China 23.00%
South Korea 6.20%
India 5.80%
Rest of Asia-Pacific 18.20%
Total 100.0%
Figure 3: India Software Market Segmentation II: % Share, by Value,

2009(e)
India
South Korea 5.8%
6.2%
Rest of Asia-
Pacific Japan
18.2% 46.8%
China
23%
India - Software
FIVE FORCES ANALYSIS
CHAPTER 5 FIVE FORCES ANALYSIS
The software market will be analyzed taking software publishers as players. The key
buyers will be taken as individual consumers and business end-users, and software
developers and makers of hardware as the key suppliers.
5.1 Summary
Figure 4: Forces Driving Competition in the Software Market in India
Intensity of competition
Buyer Pow er
5
Weak Strong 4
3
2
Degree of Rivalry Supplier Pow er
1
0
Threat of Substitutes New Entrants
Score for each force is mean of scores for its drivers.

Total area & color indicates intensity of competition overall.
Switching costs can be high for industry-specific applications but some partnerships
between players promote interoperability. Market players require skilled programmers
and hardware to manufacture software. Some companies, such as Microsoft and
IBM, are more diversified with their own developer training and certification, as well
as hardware products. The recovering market and access to distribution channels
appeal to new entrants and eases rivalry amongst incumbent players. However,
some segments are more strongly held by existing companies than others (e.g.
Microsoft and its operating system). The threat of substitutes is strong with readily
available, free open source software applications. Some diversification between
players in type of end-user and porfolio of products also eases rivalry. Overall, most
driving forces in the software market are moderate.
India - Software
5.2 Buyer Power
Figure 5: Drivers of Buyer Power in the Software Market in India

Strength of buyer power
Buyer size
Weak Strong 5
Product dispensability 4 Oligopsony threat
3
2
Buyer independence Low -cost sw itching
1
0
Backw ards integration Undifferentiated product
Financial muscle Tendency to sw itch
Price sensitivity
Scores: 1= weak driver...5=strong driver

The software market has many buyers: individual consumers, businesses of all sizes,
and government institutions. Business buyers come from a range of industries,
including banking services, retail, logistics, telecommunications and healthcare. They
may be reliant on particular players as software is often industry-specific and/or
requires users to be trained to use it, and thus switching costs can be high. However,
buyers are often large companies (although software solutions are required by
businesses of any size) which provides them with stronger bargaining power. This
issue has been exacerbated in recent years through the consolidation of buyers,
particularly in industries such as telecoms. Switching costs for buyers may be
complicated by players partnering up to deliver applications that foster
interoperability. For example, SAP's business processes can be accessed more
easily by customers through Microsoft Office using 'Duet' or through IBM's Lotus
Notes using 'Alloy'. In addition, buyers may choose open source products, which offer
similar functionality to closed source software, for example OpenOffice versus
Microsoft Office in the office applications market, Linux versus Windows in the OS
market. Open source software in itself may be free to the end-user, although
commercial vendors do exist, generating their revenues by offering subscriptions to
support the software.
India - Software
As a transition to open-source software can be a lower-cost alternative to

conventional products, its presence may accentuate price sensitivity in the market,
increasing buyer power. There is also a move to software-as-a-service (SaaS) where
buyers pay through regular subscriptions or as and when they use the software which
is hosted and managed remotely by the SaaS provider and can be accessed via the
internet. This software variant requires lower upfront costs and may be more
accessible, thus also increasing buyer power. Switching costs are lower in the B2C
software segment, particularly when purchasing computer games. Although there is
loyalty to games and consoles, this does not extend to the software companies
themselves. Overall, buyer power is moderate.
India - Software
5.3 Supplier Power
Figure 6: Drivers of Supplier Power in the Software Market in India

Strength of supplier power
Supplier size
Weak Strong
5
Forw ard integration 4 Oligopoly threat
3
2
Differentiated input 1 Sw itching costs
0
Importance of quality/cost Player independence
No substitute inputs Player dispensability

The software market requires employees with specific know-how, and also hardware
devices. Key to the success in this market are skilled programmers. Market players
rely on the continued service of highly qualified and usually generously paid
employees. For example, Microsoft's Developer Training and Certification specifically
promotes investment in this key factor. Inputs such as hardware components are
often purchased from sole suppliers, who are often large companies offering
differentiated products, resulting in significant supplier power. The likelihood of
forward integration from suppliers is rare as software production entails a highly
complicated process with large amounts of proprietary knowledge, which directly
weakens supplier power. Supplier power in this market is moderate overall.
India - Software
5.4 New Entrants
Figure 7: Factors Influencing the Likelihood of New Entrants in the

Software Market in India
Likelihood of new entrants
Low -cost sw itching

Weak Strong 5
Market grow th 4 Undifferentiated product
3
Weak brands 2 Scale unimportant
1
0
Little IP involved Low fixed costs
Suppliers accessible Little regulation
Distribution accessible Incumbents acquiescent

Software development is labor intensive, since ultimately it depends on highly skilled

programmers. Skilled employees and computer hardware are a key input, and the low
capital requirements mean that market entry is eased. However, newcomers must
choose their market segment carefully, as certain areas have very strong incumbents
(e.g. Microsoft in the PC operating system segment). Furthermore, access to
distribution channels has been made easier in recent years through the development
and uptake by end-users of broadband internet access. This allows software to be
purchased, delivered, and updated without the need for physical media or
conventional distribution channels. Although major players, such as Microsoft, have
been embroiled in anti-trust lawsuits in the US, there are few specific regulatory
requirements for software companies. In a market where new products, and new
kinds of products, are frequently launched, R&D investment is important;
alternatively, a large software company can obtain intellectual property through
acquisition of the company that originally generated it, but either approach requires
significant funds.
India - Software
Access to skilled software programmers by new entrants is challenged by the

existence of training paths offered by major players, such as the developer training
and certification offered by Microsoft. The position of incumbents may be
strengthened by their knowledge of their customers' business needs, their ownership
of key intellectual property, and potentially high switching costs for buyers in certain
sectors. The forecast continuing strong market growth (by 24.4% in 2010 and 23.6%
in 2011) provides opportunities for new entrants. Overall, the likelihood of new
entrants is moderate.
India - Software
5.5 Substitutes
Figure 8: Factors Influencing the Threat of Substitutes in the Software

Market in India
Threat of substitutes
Low -cost sw itching

5
Weak Strong
4
3
2
1
0
Beneficial alternative Cheap alternative

There are few substitutes for software as such. From the perspective of the major
players, substitutes in this market are open source software products, free web-based
applications, and pirated versions of existing products. Rather than fund their
business on big-ticket license contracts, open source companies, such as Red Hat,
receive revenues from services and maintenance. Open source software is a
beneficial alternative for many end-users. This is because most allow users to
redistribute the software and adapt it themselves. Also, it has been argued that
because the source code for open-source software is accessible to a large
community of users and developers (in fact these two groups overlap in open source
development), bugs and security weaknesses can be identifed and corrected more
quickly than for closed-source products. It is often a lower cost alternative. However,
open source products in general may present diffculties with compability. Distributors
of open source software are relatively small in comparison to traditional market
players. Companies like Google are another significant threat to the conventional
software market.
India - Software
The company generates most of its revenue from advertisements next to search
results and on third-party sites. Its move into the web-based application market, with
services such as Google Apps, could be a threat to the Microsoft desktop package,
which occupies a strong position in the market. Google Apps Standard Edition is
available free to the end-user, and offers functionality appropriate to the non-business
segment; the Premier Edition has additional business-oriented features, and is
currently available for an annual subscription of $50. Overall the threat of substitutes
is moderate.
India - Software
5.6 Rivalry
Figure 9: Drivers of Degree of Rivalry in the Software Market in India

Degree of rivalry
Competitor size
Weak Strong
5
Zero-sum game? 4 Number of players
3
Storage costs 2 Low -cost sw itching
1
0
Similarity of players Undifferentiated product
Lack of diversity Low fixed costs
Hard to exit Easy to expand

Software companies may dominate in particular areas of software, for example

Oracle focuses on databases and middleware, whereas the largest (e.g. Microsoft,
IBM) offer a broad portfolio of products including hardware. For example, IBM makes
mainframe computers, while Microsoft makes consumer electronics. In addition,
Microsoft and IBM also sell to individual consumers as well as businesses, whereas
Oracle and Tata Consultancy Services (TCS) only sell to businesses. Diversification
tends to decrease rivalry, as it defends revenues from declines in any particular
market segment. A rapidly expanding market like India's allows software companies
to grow their own revenue without stealing competitors' market share, thereby easing
rivalry; although this depends on the segment software companies specialize in.
Advances in technology mean that products are continually being introduced to the
market, enhancing rivalry. Microsoft is a dominant force in the market, particularly in
desktop software, and others may struggle to gain market share from this company.
Overall, rivalry is moderate.
India - Software
LEADING COMPANIES
CHAPTER 6 LEADING COMPANIES
6.1 Microsoft Corporation
Table 4: Key Facts: Microsoft Corporation
Address: 1 Microsoft Way, Redmond, Washington, 98052 6399, USA

Telephone: 1 425 882 8080
Fax: 1 425 936 7329
Website: www.microsoft.com
Financial Year-End: June
Ticker: MSFT
Stock Exchange: NASDAQ
Source: Company Website DATAMONITOR
Microsoft Corporation (Microsoft) develops, manufactures, licenses, and supports

software products for many computing devices. Its software products consist of
operating systems, server applications, information worker productivity applications,
business solution applications, high-performance computing applications, and
software development tools. Microsoft also develops the MSN network of Internet
products and services. The company primarily operates in the US. It is headquartered
in Redmond, Washington and employs about 91,000 people. It provides consulting
and product support services, and trains and certifies computer system integrators
and developers. The company sells the Xbox 360 video game console, the Zune
digital music and entertainment device, PC games and peripherals. Online offerings
are delivered through its Windows Live, Office Live, and MSN portals and
channels.Microsoft divides its business into five segments: Microsoft business, client,
server and tools, entertainment and devices, and online services business.
Microsoft's business division consists of Microsoft Office system and Microsoft

Dynamics business solutions. Microsoft Office system products are designed to
increase personal, team, and organization productivity through a range of programs,
services, and software solutions. Microsoft Dynamics products provide business
solutions for financial management, customer relationship management, supply chain
management, and analytics applications for small and mid-size businesses, large
organizations, and divisions of global enterprises.
The client segment provides technical architecture, engineering and product delivery
for the Windows operating system family, and maintains relationships with personal
computer manufacturers, including multinational and regional original equipment
manufacturers (OEMs).
India - Software
LEADING COMPANIES
It also undertakes the delivery of Windows products to individual and commercial

clients. This segment covers products like Windows XP Professional and Home,
Media Center Edition, Tablet PC Edition, and other standard Windows operating
systems. The company released Windows Vista in FY2007. Windows Vista includes
advances in security, digital media, user interfaces, and other areas that enhance the
user and developer experience. The latest version of Windows (as of Q4 2009) is
Windows 7.The server and tools segment develops and markets software server
products, services, and solutions. Windows Server-based products are integrated
server infrastructure and middleware software designed to support software
applications and tools built on the Windows Server operating system. Windows
Server-based products include the server platform including targeted segment
solutions, database, storage, management and operations, service-oriented
architecture platform, and security and identity software. The segment also builds
standalone and software development lifecycle tools for software architects,
developers, testers, and project managers. The company offers a broad range of
consulting services and provides product support services and industry solutions. The
company also provides training and certification to developers and information
technology professionals about its Server and Tools and Client platform
products.Major releases from Server and Tools in FY2008 included Windows Server
2008 and Visual Studio 2008. In FY2009, the company is planning to release
Microsoft SQL Server 2008 which will deliver advances in database scalability,
performance, security, and policy-based management.
The entertainment and devices division (EDD) is responsible for developing,

producing, and marketing the Xbox video game system, including consoles and
accessories, third-party games, games published under the Microsoft brand, and
Xbox Live operations, as well as research, sales, and support of those products. In
addition to Xbox, the company offers the Zune digital music and entertainment
device; PC software games; online games; mediaroom, Internet protocol television
software; mobile and embedded device platforms, Surface computing platform; and
other devices. EDD also leads the development efforts of the company's line of
consumer software and hardware products including application software for
Macintosh computers and Microsoft PC hardware products, and is responsible for all
retail sales and marketing for Microsoft Office and the Windows operating systems.
The online services business (OSB) consists of an on-line advertising platform with
offerings for both publishers and advertisers, personal communications services such
as email and instant messaging, online information offerings such as Live Search,
and the MSN portals and channels around the world. During FY2008, the company
launched new releases of Windows Live Search, the Windows Live suite of
applications and services, and updated MSN Video Service. In addition, Microsoft
launched a new release of adCenter, the company's proprietary advertising platform.
India - Software
LEADING COMPANIES
Key Metrics
Microsoft Corporation generated revenues of $58,437 million in the financial year

ended June 2009, a decrease of 3.3% compared to the previous year. The
company's net income totaled $14,569 million in fiscal 2009, a decrease of 17.6%
compared with 2008.
Table 5: Key Financials: Microsoft Corporation
Metric 2005 2006 2007 2008 2009

Revenues 39,788.0 48,282.0 51,122.0 60,420.0 58,437.0
Net Income 12,254.0 12,599.0 14,065.0 17,681.0 14,569.0
Profit Margin 30.8% 26.1% 27.5% 29.3% 24.9%
Total Assets 70,815.0 69,597.0 63,171.0 72,793.0 77,888.0
Total Liabilities 22,700.0 50,696.0 32,074.0 36,507.0 38,330.0
Employees 61,000 71,000 79,000 91,000 93,000
All in $ millions, except for employee numbers and margins
Source: Company Filings DATAMONITOR
Figure 10: Revenues & Profitability: Microsoft Corporation
Revenues Net Income Profit Margin
70,000 35.0%
60,000 30.0%
Profit Margin (%)

50,000 25.0%
US$ Millions
40,000 20.0%
30,000 15.0%
20,000 10.0%
10,000 5.0%
0 0.0%
2005 2006 2007 2008 2009
Year
India - Software
LEADING COMPANIES
6.2 International Business Machines Corporation
Table 6: Key Facts: International Business Machines Corporation
Address: 1 New Orchard Road, Armonk, New York, 10504, USA

Telephone: 1 914 499 1900
Fax: 1 914 765 7382
Website: www.ibm.com
Financial Year-End: December
Ticker: IBM
Stock Exchange: New York
International Business Machines Corporation (IBM) is the world's largest information

technology company, engaged in providing business, technology and consulting
services. The company develops and manufactures products and services related to
advanced information technology, including technology services, software, storage
systems and microelectronics. The company's business operations offer a range of
services and technologies which includes, hardware, software, financing, research
and chip technologies. The company operates in over 170 countries across North
America, Latin America, Europe, Middle East, Africa and Asia Pacific. The company
is headquartered in Armonk, New York, and employs about 398,460 people.
IBM operates through five operating segments: global technology services, global
business services, systems and technology group, software, and global financing.
Its global technology services and global business services segments are organized
as one group, global services.
The global services group provides IT infrastructure, insight and solutions to various
clients.
The global technology services segment comprises infrastructure services and

business process services. The segment's services include strategic outsourcing
services, business transformation outsourcing, integrated technology services and
maintenance.
The strategic outsourcing services offer IT services to reduce costs and improve
productivity through the outsourcing of processes and operations.
India - Software
LEADING COMPANIES
The business transformation outsourcing services comprise a range of offerings from

standardized processing platforms and business process outsourcing of the client's
business processes, applications and infrastructure. The integrated technology
services assist clients to access, manage and support their technology infrastructures
through the combination of technicians, IBM's expertise and software. The
maintenance services include various support services from product maintenance
through solution support to maintain and improve the availability of clients' IT
infrastructure.
The global services segment primarily provides professional services and

applications outsourcing services. The company leverages its industry and business-
process expertise in these services. The segment's offerings include consulting and
systems integration, and application management services, among others. The
consulting and systems integration services offering comprise consulting services in
the areas of client-relationship management, financial management, human-capital
management, business strategy and change, and supply-chain management. The
application management services include application development, management,
maintenance and support services for packaged software, as well as custom and
legacy applications.
The software segment consists of middleware and operating systems software. The
middleware software enables clients to integrate systems, applications and processes
across a standard software platform. IBM middleware is designed to open standards,
allowing the integration of unrelated client applications. In addition, software includes
product lifecycle management (PLM) software, which primarily serves the industrial
sector.
The segment's middleware software is classified into key branded middleware and
other middleware. Key branded middleware includes Lotus, Rational, Tivoli,
WebSphere, and information management software.
Lotus is collaboration, messaging and social networking software that enables

businesses to communicate and collaborate. Rational is a software tool that enables
management of Client's software development processes and capabilities. Tivoli is
software for infrastructure management including security and storage management.
WebSphere software enables the management of a wide variety of business
processes using open standards to interconnect applications, data and operating
systems. The information management software range includes advanced database,
content management, information integration, and business intelligence software.
India - Software
LEADING COMPANIES
The systems and technology group serves clients’ advanced computing power and
storage capabilities needs. The segment also provides semiconductor technology
and products, packaging solutions and engineering technology services to clients and
for IBM's own advanced technology needs. The company deploys its hardware
services to support services solutions. The systems and technology group sells the
equipment that it purchases from global financing to external clients.
The segment offerings include servers, storage products, microelectronics products,

and retail store solutions.
The servers business offers IBM systems using IBM operating systems and
supporting Linux operating systems. Its system's portfolio include System z, System i,
System P and System x.
The segment's storage solutions include information infrastructure products and

solutions for information retention and archiving, availability and virtualization, and
security and compliance. The storage solutions portfolio comprises a range of disk
and tape storage systems and software.
The microelectronics business provides semiconductor design and manufacturing for

use in IBM systems and for sale to external clients. The retail store solutions business
offers point-of-sale retail systems and solutions to connect POS with other store
systems.
The global financing segment comprises three lines of business: client financing,
commercial financing and remarketing.
Client financing provides lease and loan financing to end-users and internal clients for
terms generally between two and seven years.
Commercial financing provides short-term inventory and accounts receivable

financing to dealers and re-marketers of IT products.
Remarketing is engaged in sales and lease of used equipment to new and existing
clients both externally and internally.
India - Software
LEADING COMPANIES
Key Metrics
International Business Machines Corporation generated revenues of $103,600 million

in the financial year ended December 2008, an increase of 4.9% compared to the
previous year. The company's net income totaled $12,300 million in fiscal 2008, an
increase of 18.1% compared with 2007.
Revenue increased in India by 25.8% (33% adjusted for currency) for the financial
year ending in December 2008.
Table 7: Key Financials: International Business Machines Corporation
Metric 2004 2005 2006 2007 2008

Revenues 96,293.0 91,134.0 91,424.0 98,786.0 103,600.0
Net Income 7,479.0 7,934.0 9,492.0 10,418.0 12,300.0
Profit Margin 7.8% 8.7% 10.4% 10.5% 11.9%
Total Assets 109,183.0 105,748.0 103,234.0 120,431.0 109,524.0
Employees 329,001 329,373 355,766 386,558 398,455
Figure 11: Revenues & Profitability: International Business Machines

Corporation
120,000.0 14.0%
100,000.0 12.0%
10.0% Profit Margin (%)

US$ Millions
80,000.0
8.0%
60,000.0
6.0%
40,000.0
4.0%
20,000.0 2.0%
0.0 0.0%
2004 2005 2006 2007 2008
Year
India - Software
LEADING COMPANIES
6.3 Tata Consultancy Services Limited
Table 8: Key Facts: Tata Consultancy Services Limited
Address: 11th Floor, Air India Building, Nariman Point, Mumbai, 400
021, IND
Telephone: 91 22 6750 9999
Fax: 91 22 6750 9344
Website: www.tcs.com
Financial Year-End: March
Ticker: 532540
Stock Exchange: Bombay
Tata Consultancy Services (TCS) is one of the major providers of information

technology services. It is a subsidiary of Tata Group, one of Asia's largest
conglomerates with interests in energy, telecommunications, financial services,
chemicals, and engineering and materials industries. TCS provides a wide range of
services including business consulting, information technology, business process
outsourcing (BPO), infrastructure, and engineering. The company operates in
Americas, Europe, Middle East, South Africa and Asia Pacific. As of November 2009,
the company operated in more than 142 locations across 42 countries. The company
is headquartered at Maharashtra, India and has around 111,407 employees.
The company manages its business primarily on the geographic basis. TCS operates
through four geographic divisions: Americas, Europe, India and other countries. TCS
also considers five industry segments for managing its business: banking, financial
services and insurance (BFSI), manufacturing, retail and distribution, telecom and
others. The company's services consist of consulting, IT services, IT infrastructure
services, engineering, and industrial services and BPO.
TCS' Global Consulting Practice offers services in three areas: business consulting,
IT consulting and business solutions which assists enterprises in business
transformation; IT strategy, aligning IT to the business; IT operations, developing and
supporting IT operations; and risk management, securing the business. IT services
offers application development and maintenance services over the entire IT
application life cycle, which consists of migration and re-engineering, e-commerce
and internet services, testing services, architecture and technology consulting,
systems integration, and packaged software implementation across multiple industry
and technology domains.
IT Infrastructure offers services including complete outsourcing of IT networks,

consulting and integration, hardware support and installation, and infrastructure
management.
India - Software
LEADING COMPANIES
The engineering and industrial services offers a range of engineering services,

embedded software and research and development services to clients, assisting in
new product development and product lifecycle management through services in the
areas of product design, simulation, engineering drafting, computer aided engineering
design and manufacturing, product data management, and customization of
engineering software.
Business process outsourcing (BPO) offers a range of transaction based IT enabled

services. These comprise inbound call centers, back office support, engineering
services and database services. The company also provides transactional services to
global clients and ensures business continuity and disaster recovery.
The company offers a broad range of products to various sectors such as banking,
accounting, financial services, insurance, eSecurity, manufacturing, life sciences and
healthcare, s-Governance and energy and utilities.
The company offers asset based solutions by utilizing its proprietary software assets
to deliver solutions to clients in specific industries and licensing several software
intellectual property rights. Besides providing IT solutions to its clients, the company
develops and markets products such as the Hospital Management System, eIBS,
NCS, FIG and Quartz for the banking and financial services industry, CemPac for the
cement industry and also software development tools such as MasterCraft, Assent,
DataClean and Infrex.
India - Software
LEADING COMPANIES
Key Metrics
Tata Consultancy Services LTD generated revenues of $6,347.9 million in the

financial year ended March 2009, an increase of 23% compared to the previous year.
The company's net income totaled $5,009.3 million in fiscal 2009, an increase of
15.6% compared with 2008. TCS generated 7.9% of revenues in India in the financial
year ending March 2009.
Table 9: Key Financials: Tata Consultancy Services Limited
Metric 2005 2006 2007 2008 2009

Revenues 2,224.9 3,027.3 4,264.6 5,162.6 6,347.9
Net Income 1,853.9 2,575.1 3,459.3 4,331.8 5,009.3
Profit Margin 83.3% 85.1% 81.1% 83.9% 78.9%
Total Assets 1,207.3 1,965.4 3,009.5 3,363.3 4,231.7
Total Liabilities 393.1 558.7 941.3 851.6 1,522.8
Employees 45,715 66,480 89,419 111,407 143,761
Figure 12: Revenues & Profitability: Tata Consultancy Services Limited
7,000 86.0%
6,000 84.0%
Profit Margin (%)
US$ Millions
5,000
82.0%
4,000
80.0%
3,000
78.0%
2,000
1,000 76.0%
0 74.0%
2005 2006 2007 2008 2009
Year
India - Software
LEADING COMPANIES
6.4 Oracle Corporation
Table 10: Key Facts: Oracle Corporation
Address: 500 Oracle Parkway, Redwood Shores, California, 94065,

USA
Telephone: 1 650 506 7000
Fax: 1 650 506 7200
Website: www.oracle.com
Financial Year-End: May
Ticker: ORCL
Stock Exchange: New York
Oracle Corporation (Oracle) is one of the largest enterprise software companies in

the world. The company provides a range of products including database, application
software and middleware software suites and services supporting standard
technology platforms and application implementation related training. The company
has operations in the US, Canada, UK, France, Germany, Japan, and other foreign
countries. It is headquartered in Redwood Shores, California and employs about
84,200 people.
The company is organized into two businesses: software and services. These
businesses are further divided into five operating segments with software business
comprising two operating segments: new software licenses and software license
updates and product support; and services business comprising three operating
segments: consulting, On Demand and education.
Oracle's new software licenses segment is engaged in the licensing of database and
middleware software. These include Oracle Databases and Oracle Fusion
Middleware, as well as applications software.
Oracle Database, one of the world's most popular databases, enables secure
storage, retrieval and manipulation of all forms of data, including business application
and analytics data, and unstructured data in the form of XML files, office documents,
images, video and spatial data. Oracle Database is offered in four editions: Express,
Standard Edition One, Standard, and Enterprise.
Oracle also offers products that are complementary to its database product offerings,
including Enterprise Manager and Audit Vault.
Enterprise Manager offers top-down applications and software infrastructure

management. This allows customers to monitor and manage their applications and
underlying software infrastructure, including both Oracle and non-Oracle
infrastructure products.
India - Software
LEADING COMPANIES
Audit Vault allows compliance reporting and detection of unauthorized activities by

automating the collection and consolidation of enterprise audit data. Audit Vault
analyzes audit data in real-time based upon enterprise defined policies, issues alerts
for unauthorized activities, and provides built-in reports for demonstrating the IT
controls required to comply with internal control assessments, including provisions of
the U.S. Sarbanes-Oxley Act and other data privacy and protection regulations.
Oracle Fusion Middleware is a broad product family comprising Application Server;

Business Intelligence Suite, Identity and Access Management Suite, Enterprise
Content Management Suite, WebCenter, JDeveloper and Service-Oriented
Architecture Suite, and Data Integration Suite.
The applications software segment provides solutions for industry business process
automation. The applications software products include all core business functions,
such as customer relationship management (CRM), enterprise performance
management (EPM), enterprise resource planning (ERP), product lifecycle
management (PLM), and industry-specific applications.
The software license updates and product support segment provides lifetime support,
product enhancements and upgrades. The software license updates business
provides customers with rights to unspecified software product upgrades and
maintenance releases and patches released during the term of the support period.
The product support business includes internet and telephone access to technical
support personnel located in Oracle global support centers, as well as internet access
to technical content. It also offers Oracle Unbreakable Linux Support, which provides
enterprise level support for the Linux operating system, and supports Oracle VM
server virtualization software.
Oracle's consulting segment assists customers in deploying its applications and

technology products. Its consulting services include business strategy and analysis;
business process optimization; product implementation, enhancements, and
upgrades; and ongoing managed services. Oracle Consulting offers services through
a combination of onsite consultants and personnel from its global delivery centers
and applications solutions centers.
The company's On Demand segment includes Oracle On Demand, CRM On Demand

and Advanced Customer Services. Oracle On Demand provides multi-featured
software and hardware management, and maintenance services for customers
deploying over the internet its database, middleware and applications software
delivered either at its data center facilities, at select partner data centers or at
customer facilities. CRM On Demand provides CRM software functionality through a
hosted, web-based solution. Advanced customer services consists of solution support
centers, business critical assistance, technical account management, expert services,
configuration and performance analysis, personalized support and annual on-site
technical services.
India - Software
LEADING COMPANIES
The education segment provides training to customers, partners and employees. It

offers multiple courses covering all of its product offerings. It provides training through
public and private instructor-led classroom events, online courses and self paced
media training on CD-ROMs. In addition, it also offers a certification program
certifying database administrators, developers and implementers. Oracle University
also offers user adoption services designed to provide comprehensive training
services.
Key Metrics
Oracle Corporation generated revenues of $23,252 million in the financial year ended
May 2009, an increase of 3.7% compared to the previous year. The company's net
income totaled $5,593 million in fiscal 2009, an increase of 1.3% compared with
2008.
Table 11: Key Financials: Oracle Corporation
Metric 2005 2006 2007 2008 2009

Revenues 11,799.0 14,380.0 17,996.0 22,430.0 23,252.0
Net Income 2,886.0 3,381.0 4,274.0 5,521.0 5,593.0
Profit Margin 24.5% 23.5% 23.7% 24.6% 24.1%
Total Assets 20,687.0 29,029.0 34,572.0 47,268.0 47,416.0
All in $ millions, except for margins
Figure 13: Revenues & Profitability: Oracle Corporation
25,000 24.8%
24.6%
Profit Margin (%)
20,000 24.4%
US$ Millions
24.2%
15,000 24.0%
23.8%
10,000 23.6%
23.4%
5,000 23.2%
23.0%
0 22.8%
2005 2006 2007 2008 2009
Year
India - Software
MARKET FORECASTS
CHAPTER 7 MARKET FORECASTS
7.1 Market Value Forecast
In 2014, the Indian software market is forecast to have a value of $6,693.6 million, an
increase of 172% since 2009.
The compound annual growth rate of the market in the period 2009-2014 is predicted
to be 22.2%.
Table 12: India Software Market Value Forecast: $ million, 2009-2014
Year $ million INR million % Growth
2009 2,461.0 107,826.6 22.10%

2010 3,060.3 134,086.4 24.40%
2011 3,781.4 165,680.5 23.60%
2012 4,600.8 201,581.0 21.70%
2013 5,566.9 243,908.8 21.00%
2014 6,693.6 293,277.5 20.20%
CAGR, 2009-2014: 22.2%
Figure 14: India Software Market Value Forecast: $ million, 2009-2014
$ million % Growth
8,000 30.0%
7,000
25.0%
6,000
20.0%
% Growth
$ million
5,000
4,000 15.0%
3,000
10.0%
2,000
5.0%
1,000
0 0.0%
2009 2010 2011 2012 2013 2014
India - Software
MACROECONOMIC INDICATORS
CHAPTER 8 MACROECONOMIC INDICATORS
Table 13: India Size of Population (million) , 2005-2009(e)
Year Population (million) % Growth
2005 1093.6
2006 1111.7 1.70%
2007 1129.9 1.60%
2008 1148.0 1.60%
2009(e) 1166.1 1.60%
Table 14: India GDP (Current Prices, $ billion), 2005-2009(e)
Current Prices, $
Year billion % Growth
2005 804.4
2006 924.4 14.90%
2007 1044.6 13.00%
2008 1203.8 15.20%
2009(e) 1342.4 11.50%
Table 15: India Inflation, 2005-2009(e)
Year Inflation Rate (%) % Growth
2005 3.3
2006 6.9 109.10%
2007 8.1 17.40%
2008 8.0 -1.20%
2009(e) 5.0 -37.50%
India - Software
MACROECONOMIC INDICATORS
Table 16: India Exchange Rate, 2005-2009(e)
Exchange Rate
Year ($/INR)
2005 0.02267
2006 0.02207
2007 0.02418
2008 0.02282
2009(e) 0.02037
India - Software
APPENDIX
CHAPTER 9 APPENDIX
9.1 Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all
aggregated, analyzed, and cross-checked and presented in a consistent and
accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and

consumer surveys and supported by analysis from industry experts using highly
complex modeling & forecasting tools, Datamonitor’s in-house databases provide the
foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news,

analyst commentary, company profiles and macroeconomic & demographic
information, which enable our researchers to build an accurate market overview
Definitions – Market definitions are standardized to allow comparison from country to

country. The parameters of each definition are carefully reviewed at the start of the
research process to ensure they match the requirements of both the market and our
clients
Extensive secondary research activities ensure we are always fully up-to-date with
the latest industry events and trends
Datamonitor aggregates and analyzes a number of secondary information sources,

including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – Datamonitor has developed powerful tools that
allow quantitative and qualitative data to be combined with related macroeconomic
and demographic drivers to create market models and forecasts, which can then be
refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused,
accurate and up-to-date
India - Software
APPENDIX
9.2 Industry Associations
World Information Technology and Services Alliance (WITSA)

8300 Boone Boulevard, Suite 450, Vienna, VA 22182-2633, USA
Tel: 1 571 265 5964
Fax: 1 703 893 1269
http://www.witsa.org
9.3 Related Datamonitor Research
Datamonitor Industry Profiles
Global Software
Software in Europe
Software in Asia-Pacific
Software in France
Software in Germany
Software in the United Kingdom
Software in Japan
Software in the United States
Software in Denmark
Software in Poland
Software in Hungary
India - Software

Software in India: Industry Profile

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Software in India: Industry Profile

Hochgeladen von

Copyright:

Verfügbare Formate

Software in India

Reference Code: 0102-0381

Datamonitor is a leading business information company specializing in industry

Through its proprietary databases and wealth of expertise, Datamonitor provides

All Rights Reserved.

Market Value Forecast

India accounts for 5.8% of the Asia-Pacific software market's value.

CHAPTER 1 Market Overview 7

1.1 Market Definition 7

1.2 Research Highlights 7

1.3 Market Analysis 8

CHAPTER 2 Market Value 9

CHAPTER 3 Market Segmentation I 10

CHAPTER 4 Market Segmentation II 11

CHAPTER 5 Five Forces Analysis 12

5.2 Buyer Power 13

5.3 Supplier Power 15

5.4 New Entrants 16

CHAPTER 6 Leading Companies 21

6.1 Microsoft Corporation 21

6.2 International Business Machines Corporation 24

6.3 Tata Consultancy Services Limited 28

6.4 Oracle Corporation 31

CHAPTER 7 Market Forecasts 34

7.1 Market Value Forecast 34

CHAPTER 8 Macroeconomic Indicators 35

9.2 Industry Associations 38

9.3 Related Datamonitor Research 38

Table 1: India Software Market Value: $ million, 2005-2009(e).........................................9

Table 2: India Software Market Segmentation I: % Share, by Value, 2009(e) ................10

Table 4: Key Facts: Microsoft Corporation......................................................................21

Table 5: Key Financials: Microsoft Corporation ..............................................................23

Table 6: Key Facts: International Business Machines Corporation .................................24

Table 7: Key Financials: International Business Machines Corporation..........................27

Table 8: Key Facts: Tata Consultancy Services Limited .................................................28

Table 9: Key Financials: Tata Consultancy Services Limited..........................................30

Table 10: Key Facts: Oracle Corporation..........................................................................31

Table 11: Key Financials: Oracle Corporation ..................................................................33

Table 13: India Size of Population (million) , 2005-2009(e) ..............................................35

Table 14: India GDP (Current Prices, $ billion), 2005-2009(e)..........................................35

Table 15: India Inflation, 2005-2009(e) .............................................................................35

Table 16: India Exchange Rate, 2005-2009(e) .................................................................36

CHAPTER 1 MARKET OVERVIEW

1.1 Market Definition

The computer software market consists of systems and application software.

1.2 Research Highlights

The performance of the market is forecast to decelerate, with an anticipated CAGR of

1.3 Market Analysis

The performance of the market is forecast to decelerate, with an anticipated CAGR of

CHAPTER 2 MARKET VALUE

Table 1: India Software Market Value: $ million, 2005-2009(e)

Year $ million INR million % Growth

2005 731.7 32,060.0

CAGR, 2005-2009: 35.4%

Source: Datamonitor DATAMONITOR

Figure 1: India Software Market Value: $ million, 2005-2009(e)

2,000 40.0% % Growth

Source: Datamonitor DATAMONITOR

CHAPTER 3 MARKET SEGMENTATION I

Sales of operating system software generated 21.2% of the market's aggregate

Table 2: India Software Market Segmentation I: % Share, by Value,

Network and Database management 24.50%