Software market share in India H1 2021, by segment

Applications generated the highest revenue and had a market share of 60.9 percent in first half of 2021. The software market was around seven billion U.S. dollars in India in 2020. Within the application segment, the collaborative application created the highest value. This was followed by data management, Customer Relationship Management (CRM), and Enterprise Resource Management (ERM) applications. On a year-over-year basis, this market saw a sharp growth in comparison with the previous year.

IT industry in India

India’s IT industry is one of the leading sectors contributing towards India’s post-liberalization economic growth. The sector is a significant employer to about three million people and also a major contributor to the Indian economy, with around 1.2 percent in financial year 1998, to about 7.4 percent in financial year 2022. At present, the IT and IT enabled services industry has three major sectors: software services, and customized software development; Business Process Outsourcing (BPO); and research and development (R&D) as well as engineering services.

Applications sector

The leading software segments in terms of revenue are engineering applications, collaborative applications, customer relationship management applications, enterprise resource management applications, and content workflow and management applications. Although the coronavirus pandemic had a negative impact on Indian economy including the software market, it also served as a driver for many enterprises in reevaluating their IT strategies to make steps toward digital business models.