Having gained a leading role in software services, it is time India focussed on creating more companies making information-technology (IT) products, said Mr Som Mittal, President, National Association of Software and Service Companies (Nasscom), a body representing the IT industry.
“We should have at least 500 product companies in the next five years and around 2,000 by the year 2020,” he said at the seventh edition of Nasscom's EMERGEOUT Conclave in Chennai with the theme being “India as a launch pad – Next Generation IT Innovation”. “India should be [a] launching pad for product companies in future,” he said.
There are opportunities, especially for small and medium companies, to develop products in sectors such as cloud-computing, mobile applications and software as a service, he said. “The future is bright, and we need to make full use of it,” he said.
The global IT outsourcing demand is likely to triple to nearly $1.7 trillion in the next eight years, said Mr Krishnakumar Natarajan, Co-Chair, Nasscom Emerge-Products Group, and chief executive and Managing Director, MindTree Ltd, quoting a report by McKinsey. India as a brand in the global IT market has shown great resilience. “We need to continue this growth momentum, which need not come from large companies but from small- and medium-size[d] and emerging companies,” he said.
“We need to encourage start-up companies to build products in areas such as net-based, gaming and animation and social media,” he said.
Mr Krishnamachari Srikkanth, former captain of the Indian cricket team and the current chairman of the selection committee, and chief executive of careerstrokes.com, in his keynote address advised young entrepreneurs to bring out innovative products and solutions without worrying whether the venture will succeed or not. “There could be failures but do not worry about it. Do what you like,” he said.