Wednesday, February 25, 2009

Software Market in India

Sometime ago, IT department in Orissa invited bids from IT Biggies like Infosys,TCS, WIPRO for a software project. Most of these companies did not respond. The project was eventually awarded to a smaller company.

I came across a news story where wipro and tcs are competing for a government software project.

India was never a big software market. All IT services companies depended on the West for their bread and butter. TCS catered to the domestic market. But Infosys, Wirpro never did projects in India. It was because the market was small, the margins were this and west had the glamour. Today the scenario has changed. The markets in the west have saturated. The growth is non-existent. The economic downtuen has hit companies and their IT budgets.

And, the Indian market is growing. The Government spending on IT is growing. These are signs of country coming off age.

In Japan, the country was closed to foreign palyers but the japanese companies fought fiercely for the domestic market. The country was very quality conscious. This helped in building world class companies in every industry sector.

I hope that in India similar phenomenon would take place. The domestic market should give rise to many more Infosyses in every part of India.

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