Fostering the Right Ecosystem – A software Products Led Approach

By admin July 25, 2019 17:13

The 181-billion-dollar IT BPM industry has been services led and exports driven industry. It has become a global powerhouse in the IT services sector NASSCOM strategic review estimates that the software products segment stands at $7.1 billion in 2018. Of which the domestic market is at 4.8 Billion USD.

The national policy on software products NPSP, 2019 has been tabled.

  • At its core is a vision to expand Indian software products Market by tenfold in the next 5 to 6 years.
  • A dedicated software product development fund is proposed which will provide risk capital to scaleup market ready for software products.
    • A Corpus of rupees 5,000 crore will bridge the gap between capital requirements of software product startups and the funding available from banks.
    • It will provide risk capital to enable the creation of at least a hundred Indian software product companies having a valuation of rupees 500 Crore or employing 200 people.
  • An attempt to bridge the gap between what the industry requires and the academia delivers a budgetary outlay of rupees 500 crores will support Research and innovation in software products in institutes of Higher Learning.
  • The policy will also nurture 10,000 software product startups which in turn will create a million jobs both direct and indirect. At least 1000 of the startups will have to be in Tier 2 and 3 locations.
  • MeitY will be initiating two incubation schemes;
    • Technology Incubation and Development of Entrepreneurs (TIDE) 2.0 for software product development aimed at societal sectors.
    • Next Generation Incubation Scheme (NGIS) for tier 2 and 3 software product companies based out of STPI.
  • 20 domain specific Indian software product clusters will be initiated which will have integrated ICT infrastructure, marketing, incubation, R&D and mentoring support for at least 500 Technology startups.
  • Future skills PRIME initiative will aim to skill/reskill another 3-3.5 million people.

Caveats & Commentary

  • Software products often take up to 2 years for release in addition there will be periodic upgrades releases.
  • Towards ease of doing business a single repository of all laws and regulations applicable to the software product industry should be created.
  • Funding for innovation can be appropriated through an exclusive innovation fund within the purview of MeitY to promote the domestic product companies.
  • Testing is a very important aspect of software product development there has to be definitely incentives for investors to set up testing lab and centres of Excellence.
  • The measuring metrics today are centred on volume, age old practice. We have to move towards quality.

We cannot be looking at products and services in isolation. If anything there is a healthy mix of both and progressive companies which are supremely concerned about providing a superior experience for its customers.

By admin July 25, 2019 17:13