The India software industry is expected to exceed US$8.2 billion by the end of the calendar year 2021, according to the International Data Corporation (IDC) Worldwide Semiannual Software Tracker 1H21 (January-June).
In 1H21, the Indian software market was valued at US$4.0 billion, representing a 15.9 percent year-over-year (YoY) increase over 1H20.
During the first half of this year, India accounted for 18.3 percent of the overall Asia-Pacific excluding Japan and China (APeJC) software market. During the first half of the year, Microsoft, Oracle, and SAP maintained their dominance in the Indian market.
“Indian organisations are continuing their digital transformation projects with a clear focus on scalable, secure, and agile frameworks,” says Hemanth Gudiwada, Associate Market Analyst at IDC India. They increased their cloud spending for scalability, AI investments to accurately exploit data and serve clients more efficiently, and security efforts to secure their network and systems, with a focus on SASE.
IDC classifies the software market into three primary categories: applications, application development and deployment (AD&D), and systems infrastructure (SI) software. Applications contributed 60.9 percent to the overall market revenues, followed by AD&D and SI software with shares of 21.0 percent and 18.1 percent, respectively, in 1H21.