Business still brisk for IT cos catering to domestic demand

BANGALORE: Software product companies catering to domestic telecom and healthcare firms continue to see robust demand for their solutions, even as their counterparts focused on the top export markets of US and Europe are coping with the tightened budgets of their large customers.

According to a recent Nasscom study, there are 600-700 software product companies in India with combined revenues of nearly $1.4 billion last year. The study says that revenues could potentially touch $9.5-12 billion by 2015. At a time when their bigger software services rivals are estimated to grow by around 16% this year, smaller companies, such as Subex and Srishti, will grow their business by at least 22% in 2009.

For instance, Srishti Software, which offers web publishing solutions, signed about $10 million worth of contracts last year. ���Indian software products are very cost competitive at a time when budgets are shrinking,��� said Ajay Shankar Sharma, chief executive of Srishti.

Other product firms, like Brio Telecom, continue to receive more business enquiries in India. ���We are receiving business enquiries every week,��� said Harish Kolar, managing director of the company.