Software companies scale up, target niche segments

Financial Express
The global delivery model seems to be working for Indian software companies and the offshore outsourcing phenomenon is into episode two. At the same time, the domestic market for software services is burgeoning as India Inc starts adopting IT with a vengeance, says Venkatesh Ganesh. What started out as a backlash against outsourcing in early 2004 turned out to be just a passing phase for Indian software. That said, the ground realities remain the same. US companies continued to outsource with the same fervour as before. According to Nasscom, IT services and software exports grew by 33% in FY 2003-04 clocking revenues of $12.8 billion. Nasscom predicts that the IT services and software exports industry is likely to grow 35% to touch $17.5 billion in FY 2004-05. Custom application development and maintenance account for approximately half of India’s IT services exports. more...