Political stability and economic revival in India has helped the software market witness 10.7 percent growth in the first half (January-June) of 2014 compared to the same period in 2013, according to an International Data Corporation (IDC) report.
"The sweeping win of the BJP government in the 2014 elections resulted in some amount of positivity in the market which reflected in the IT investments by major verticals like BFSI, manufacturing, retail and e-commerce. Few big vendors closed major deals which were in the pipeline since early 2013. This led to overall growth of the market during 1H 2014," the report said.
IDC expects the software market to grow at a stable pace in the next five years (2014-2018) with a healthy compound annual growth rate (CAGR) of 10.5 percent.
Some of the areas which are expected to witness software uptake are mobile application development and mobile device management, security software (related to 3rd platform), system software, analytics and engineering applications.
The software vendor market is led by Microsoft, followed by Oracle, SAP, IBM and Synopsys.
Some of the solutions, which were readily accepted across verticals included customer analytics, mobile solutions, cloud solutions, customer management solutions, omni-channel management systems and data loss prevention.
"Large as well as SMB customers are looking at ways to curb their capital expenditure and are keen to embark on the cloud journey. This has led the vendors to make their licensing policies more flexible and easier so that existing customers could smoothly transition to a cloud environment," said Shweta Baidya, senior market analyst, software, IDC India in the report.
"There has been a shift in the mindset of users across these industries. IT investments are now made not only for process improvements but also for growing business opportunities and improving customer experience," the report added.